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According to current best estimates, something like 80% of the critical illness insurance currently on the books in the United States has been sold in the workplace.
Insurers selling CI in this channel report excellent response rates–30% and more, when the product is offered on its own.
Even when presented as part of a menu of product choices, the product sees significant response, even from relatively young employees.
What message does this growing success have for producers and insurers?
First and most important, the products concept is simple and appealing.
In the worksite, enrollers typically spend less than 10 minutes with each prospect. Their message must therefore be crisp and directand it must accomplish several key things. For instance, most people have never heard of CI insurance, so the enroller must first educate on what CI insurance is and why the person needs it–before discussing the nitty-gritty on coverage and cost.
To those who normally spend an hour or two presenting an insurance product, it may sound like "mission impossible" to accomplish this explanation in 10 minutes. Yet it is done successfully in a worksite setting every day!
This is helped by the fact that there is almost universal need for this protection.
In todays world of spiraling medical costs, many people have seen their group medical benefits cut back as employers struggle to contain plan costs. Employees know their medical insurance will not cover all expenses if they should get sick. So it is not a big leap to get them to consider the consequences of how "out of pocket" medical expenses could be crushing to them and their family.
It is really no surprise that recent research has shown that single parents are extremely responsive to the product, despite their typically stretched budgets.
Putting it simply, people want to say "yes" to this insurance because it makes sense to them. It offers them choices; it meets a need they readily can understand.
