16 Jun 2022
It’s Time to Start Talking about Accident Insurance
When was the last time you spoke to a client about accident insurance? If it hasn’t been for a while, now is a great time to start, due to the growing need for—and appreciation of—accident protection.
During the heart of the pandemic, accident insurance took a back seat to life and health policies. But now—as people around the globe resume normal activities—the risk of preventable injuries is rising, especially with summer upon us.
Some types of accidents are more prevalent in summer, including car accidents, drownings and other injuries related to outdoor activities.
It’s time to give some new consideration to accident insurance, one of the cornerstones of the Pan–American Life Insurance Group product portfolio. Which of your clients could benefit from this protection? What do they need to know in order to see its value?
In other words, how do we give this valuable, remarkable affordable form of insurance the attention it deserves?
Who Needs Accident Insurance?
According to the World Health Organization, 3,159,000 people died from preventable injuries in 2019, the most recent statistics available. Motor-vehicle injuries were the leading cause of preventable deaths in the world, accounting for more than a third of them.
By their nature, accidents happen unexpectedly—anytime, anywhere, to anyone. So, theoretically, all of your clients are good prospects for accident coverage.
However, those who need it most are likely to fall under one of two categories: either their lifestyle puts them at greater risk…or their existing life and health insurance isn’t all it could be.
As a result, it may make sense to target:
- Millennials – Recent claims experience indicates that Millennials are particularly accident prone, often due to athletic-related activities and high risk of traffic accidents.
- Gig workers – Accident insurance is increasingly seen as an alternative to workers’ compensation—a benefit gig workers are generally not eligible for, although many, such as rideshare drivers, are exposed to greater risk.
- Entrepreneurs – Because self-employed individuals are also exempt from workers’ compensation—and may find it harder to qualify for disability insurance—accident insurance is a smart, affordable option for this group as well.
- Athletes and Risk-takers – People who are physically active, engage in sports or pursue higher-risk pursuits will also benefit from the extra protection afforded by accident insurance.
How To Educate Prospects
The term “Accident insurance” sounds self-explanatory, but don’t take for granted that your clients and prospects know exactly what it is or what its benefits are.
For example, they may not know that it’s an umbrella term encompassing several coverages. Depending on what you’re offering them, be sure to explain that the coverage includes:
- Accidental Death and Dismemberment (AD&D)
- Accident Medical Benefits
- Accident Disability Benefits
In addition, it’s wise to emphasize that accident insurance requires little or no medical underwriting and is remarkably affordable. For prospects on limited budgets or worried about their lack of assets, accident insurance can offer peace of mind.
Upselling Your Current Life and Health Clients
While accident insurance is not an adequate replacement for life or health insurance, it’s a smart way to supplement those existing coverages—especially when their existing policies and/or benefits are not as robust as they could be.
For example, accident insurance that includes medical benefits makes an affordable supplement to hospital indemnity plans and high-deductible health plans. Similarly, it’s a low-cost way to augment life insurance.
In fact, if your client originally turned down AD&D when they purchased their whole or term life policy, now would be a great time to circle back and offer it anew—noting that the premiums are just a fraction of what they’re already paying.
People’s perceptions change over time, and if you’re not frequently in touch with your clients, you may miss an opportunity to help them upgrade their protection when they’re receptive.
Now Is a Great Time to Sell Accident Insurance
Since COVID-19, people have a better understanding that the unthinkable can actually happen to them—that everyone is vulnerable to unexpected tragedies.
In other words, that same awareness that is driving the life insurance boom may drive new accident insurance sales, too.
In a nutshell, accident insurance is valuable, affordable and easy to understand. It complements other life and health products but can also stand alone.
If you want something “new” to talk about with your prospects and clients—and what agent doesn’t?—it’s time to give accident insurance its due.