Helping a Business Owner Keep The Business Running

Presented by Michelle Daharsh

When small business owners become disabled, there’s a lot more at stake than just their personal obligations to their family. Ongoing business expenses such as rent, utilities, employee salaries and property taxes all need to be met, regardless if the business owner is there or not.

Your clients may already have disability income insurance in place to cover their personal expenses and income, but think about what would happen to those clients that own a business if they had a serious accident or an illness? How long would your client’s business survive, and how would they pay their monthly expenses in order to keep their business open?

Business Overhead Expense (BOE) insurance is designed to help protect your client’s business if they were to become disabled due to a serious illness or accident and are unable to work. Not only does that business owner have their own personal expenses to worry about, but they also have to pay employee salaries, rent, taxes, utilities, and a host of other expenses of their business. How are they going to be able to do this if they can’t work? Those bills could add up quickly if there isn’t business expense protection in place. A BOE policy will provide monthly payments to help pay those overhead expenses of the business and give your client the peace of mind that their business will continue to be up and running while they are recovering!

Without Business Overhead insurance, your client may have to consider other alternatives or potentially close their doors permanently. Unlike a personal disability income policy, which can pay benefits to age 65 due to a disability, a business overhead expense policy generally has a shorter benefit period of one to two years, but for a very specific reason. It allows a business owner that may be recovering from a disability, the time to get things back to some form of normalcy. However, if the disability of the owner is going to be more permanent, then it gives the owner ample time to explore alternatives for the business without being under a hardship to make a quick decision. Give your small business owner clients the power to help protect what they have worked so hard for with a Business Overhead expense policy!

When does a 10% increase equal a 20% commission increase?

Presented by Jim Linn

When it comes to placed business ratio:

Let use this as an example: Agent submits 10 applications at a monthly premium of $100.

10 x $100 x 12 months= $12,000 Annual Premium

For illustration purposes, assume a commission rate of 80%

Placement ratio of 50% = $4,800 commission

Placement ratio of 60% = $5,760 commission

20% more commission for placing 10% more business.

How do you increase your placement ratio?

  1. Complete a needs assessment with your clients to determine the amount or clarify the amount of life insurance they said they want. (How did you arrive at that amount of insurance?)
  2. Utilize a fact-finder to get a better overview of your client’s situation and don’t forget to ask the health questions. All of them. NOTE: Just asking if they smoke is not enough. Ask them if they use or have used ANY tobacco products (the patch, Nicorette gum, e-cigs, chewing tobacco, etc.) Marijuana usage?

Depending on the type of tobacco product and/or marijuana usage they may still qualify for non-tobacco rates depending on the carrier.

  1. What is their budget? Without knowing what they can set aside each month you are guessing if it is affordable. Mr. /Mrs. Client based on your current budget what amount would you like to contribute to your life insurance program? If they give you the “depends on how much it is” look them in the eye and tell them it will be $1,000 a month. Then explain that you have some clients whose budget is $50-$200 per month and others that are $500+. You are just trying to put together the best options for them based on their budget. Mr. /Mrs. Client would you say your monthly budget is somewhere between $50-$200 or something else? Keep redirecting to get a closer range that you know is acceptable to them.
  2. Put together 3 options for them to review. Low, Medium and High. If you only present ONE option it is easier for them to say NO. By having THREE the plan they elect becomes their own decision. 80% of the time they will choose the middle option.

By taking a few extra steps with your clients, you will not only close more business and place more business, but increase your commission as well.


Presented by Jim Linn

Elmer Fudd would have made a great insurance agent!  Not because of his keen intellect, cunning skills or snappy attire, but because he hunted wabbits and had an unwavering persistency.  In an article from, one advisor discusses the importance in not chasing the elephants or you will starve, and the importance of hunting wabbits, and how they can build a large client base.  Click on the link below for to read the short article.

Critical Illness Insurance for the Small Business Owner

Presented by Tim Dreher

What kind of an illness or injury would it take to keep a small business owner at home and away from their business?  A bad case of the flu or a broken arm, probably not.  Most business owners got where they are today by being diligent hard workers who have shown up every day to get the job done.  It would take something more than a little illness or injury to keep them at home.  However, an event such as a heart attack, stroke or a cancer diagnosis probably would.

Critical illnesses are striking more Americans every single year.  Some 1.4 million Americans are diagnosed with cancer (American Cancer Society) annually.  An estimated 785,000 Americans will have their first heart attack and some 600,000 Americans will experience their first stroke (American Heart Association), and with new advances in medicine, the vast majority will survive.

The financial consequences of surviving a critical illness are something few people are prepared for.  A lot of the cost associated with caring for someone with a critical illness is covered by most health insurance plans.  But approximately 67% of all costs associated with a heart attack, cancer and stroke are non-medical costs.  Also, most high-deductible health plans have deductibles and co-pays that can easily run into thousands of dollars and yet they would still need to continue to pay their premiums.

Suggest purchasing a Critical Illness policy.  This specialized insurance provides a lump-sum, tax-free payment upon diagnosis should a policyholder suffer from certain specific critical conditions.

What a difference a cash payment of $10,000, $25,000, $50,000 or even $100,000 would make to a client when their covered condition is diagnosed.

The money could be used to:

  • Pay off a mortgage, or just make the monthly mortgage payments, credit card debt or other loans
  • Supplement lost income as a result of waiting periods, elimination periods or deductibles
  • Find alternate medical treatment that may normally not be covered by most health insurance plans such as experimental treatments
  • Make modifications to their home in order to accommodate different health conditions
  • Or even just to take some time off to heal and not have to worry about their business but instead concentrate on getting well again.

Having a lump sum payment from a critical illness plan paid to your client just might make the difference of the business surviving.

Contact your Critical Illness marketing specialist at Financial Brokerage at 800-397-9999 to get additional information about this highly important form of protection.

Business Overhead Expense (BOE) Disability Protection for your Client’s Business

Presented by Leonard Berthelsen


We sometimes don’t give much thought about a client’s business beyond the potential conversations regarding Buy/Sell, Key Man and Owner Disability Income coverage.  There is a huge potential risk to a business due to a disability affecting the owner or owners.  Think in terms of protecting the business from a disability, not just the individual.

BOE protection does just that.  It protects the business from an owner’s disability allowing it to continue to operate.

Most small businesses are family or closely held companies that would be significantly impacted if the owner were disabled and not able to work or to participate in the daily direction of the business.  Most companies would no longer thrive and many would just simply fail as a result.

A BOE policy can be the life-line that protects and saves a business.  Imagine for a moment your client that has a small business and the owner is involved in the daily operation.  He has a couple of employees, a business loan, heat, lights and a mortgage to pay each month along with continually generating new business.  A disability occurs to this owner and he is not able to be involved in his own business on a daily basis.  How is payroll going to be met?  How will he pay the light and gas bill on time?  Who is generating new business?  If the owner is unable to be involved in the day to day functions of the business, then that business will undoubtedly suffer as a result of the owner’s absence.

Insurance coverage (BOE) to pay those monthly bills will allow the business to remain open.  If a sale of that business becomes necessary due to the owner’s disability, then a calculated well thought out business plan can be put in place to accomplish that.  Contact your Financial Brokerage Sales Manager at 800-397-9999 to learn more about the Business Overhead Expense plan that just might save your client’s business.