Anyone here sell Business Overhead Expense insurance?

[cadylou]

I think this is an undersold product with a real value for small business owners who are "working" owners, not just managers or overseers. I'm just not sure how to approach a business cold to get their interest so that i can get in for an appointment.

Suggestions?

 

[somarco]

BOE is indeed undersold, as is DI.

BOE is usually easier to qualify for (financial underwriting) because the carrier is insuring business expenses, not income of the owner.

Questions usually work better than statements.

"Who will pay your (rent, utilities, loan payments, etc) if you are hit by a truck and unable to come in tomorrow and open the shop?"

Most business owners have taken on some debt and signed a lease so their expenses are much higher than day to day living expenses. Many think they will never get sick but most can identify with an auto accident. Get them thinking about the business debts & expenses then use that to dovetail into personal disability.

Some get it. Some don't.

Deal with the ones where the light bulb comes on. Then tell them you have a company that pre-qualifies business owners for a 2 year line of credit that never has to be repaid.

That is a start. Others will have more to add.

 

[J.R.]

BOE is indeed undersold, as is DI.

BOE is usually easier to qualify for (financial underwriting) because the carrier is insuring business expenses, not income of the owner.

Questions usually work better than statements.

"Who will pay your (rent, utilities, loan payments, etc) if you are hit by a truck and unable to come in tomorrow and open the shop?"

Most business owners have taken on some debt and signed a lease so their expenses are much higher than day to day living expenses. Many think they will never get sick but most can identify with an auto accident. Get them thinking about the business debts & expenses then use that to dovetail into personal disability.

Some get it. Some don't.

Deal with the ones where the light bulb comes on. Then tell them you have a company that pre-qualifies business owners for a 2 year line of credit that never has to be repaid.

That is a start. Others will have more to add.

Is BOE typically cheaper than DI due to it's more relaxed underwriting?

 

[cadylou]

It can be

It all depends on the monthly amount they need coming in. Usually the amounts are higher, but the maximum no of years for payout is shorter than DI (max 2 years), so they know they won't be paying out until someone is 65.

 

[arnguy]

Another "talking point" abot BOE coverage is that the benefits are essentially tax free. That is because the payments from the insurer are used to cover legitimate business expenses and those expenses are deductible from the gross profit of the business as ordinary business expenses. Therefore it is a "wash." Also, the premiums paid are deductible as an ordinary business expense.

 

[arnguy]

I believe that one could call the situation I described above as "a win-win" situation. It is still a tough sell.

 

[somarco]

It is a tough sale, which is why a lot of folks dont try to sell it, and a lot of BO's don't know about it.

Logically, it makes a lot of sense and SHOULD be on every small BO.

But who does thing's logically?

 

[arnguy]

I think I did not make it clear in my Post #5, but the benefits are taxable; however. these benefits are used to pay ordinary business expense which in turn are deductible. I hope that I have clarified this talking point. It suprises me that it is such a tough sale in spite of this benefit.

 

[padthaiforlunch]

BOE is indeed undersold, as is DI.

BOE is usually easier to qualify for (financial underwriting) because the carrier is insuring business expenses, not income of the owner.

Questions usually work better than statements.

"Who will pay your (rent, utilities, loan payments, etc) if you are hit by a truck and unable to come in tomorrow and open the shop?"

Most business owners have taken on some debt and signed a lease so their expenses are much higher than day to day living expenses. Many think they will never get sick but most can identify with an auto accident. Get them thinking about the business debts & expenses then use that to dovetail into personal disability.

Some get it. Some don't.

Deal with the ones where the light bulb comes on. Then tell them you have a company that pre-qualifies business owners for a 2 year line of credit that never has to be repaid.

That is a start. Others will have more to add.

Good stuff, Bob.

 

[nfsmarketing]

I like the approach describing BOE as a 2 year line of credit you don't have to pay back. ". We've got some agents writing Assurity's BOE. It really is under-utilized, as many have also indicated.