|
Auto insurance and life insurance are pretty
straight forward. One protects your car and the other
pays benefits if the insured dies. Disability income
insurance, on the other hand, can be more confusing to
some. It's a product many people know very little
about.
To complicate things further, the name
'disability insurance' is frequently confused with
long-term disability (LTD) and short-term disability
(STD) insurance which is typically offered by
employers. The individual and business DI products
available through the carriers we work with may have
similarities to STD and LTD but they are very
different.
That's where you and dibroker West come in!
We know disability income insurance and can help you
present it effectively to your clients. DI fits in
perfectly with the other insurance products and
financial planning services you’re already providing.
The basic sales principals are still in play but a
successful DI salesperson also helps clients
understand how income protection boosts their overall
financial plan.
 Only 48% of American
adults indicate they have enough savings to cover
three months of living expenses in the event they’re
not earning an income.* In other words, 48% of
Americans would benefit from a disability insurance
policy. That’s where you can make a difference! These
four steps will show you how to find buyers, show the
need for income protection, provide the solution and
complete the sale.
*Federal
Reserve, Report on the Economic Well Being of U.S.
Households in 2016 (PDF)
Step 1: Find DI Buyers
The best tip for finding DI buyers is to
start with your current clients. They know you; they
trust you and they value your recommendations. Let
them know it’s important to have a complete income
replacement plan in place before they need it.
Most consumers have never been approached
about the need for disability income protection. That
means you have many opportunities to simply start the
conversation and help clients think about protecting
their most important asset, their income. Questions
like “how long could you pay your bills if your
paycheck stopped” and “could you survive on 60% of
your current income (the amount SSDI pays)” are great
questions that help clients relate the need to their
unique situation.
White Collar Buyers – a No Brainer
White collar workers typically understand
the value of disability income insurance. White collar
workers also can normally afford DI coverage very
easily so they’re a no brainer when it comes to
prospects. But most Advisors don’t work with white
collar workers exclusively so that may not be the bulk
of your business.
TIP:
Most white-collar professionals have a considerable
amount of student loan debt. Discussing the student loan
rider – available from many carriers – could be another
selling point showing the need for DI.
Find the Middle…
Market
Middle market workers are often described
as workers who are not the richest nor the poorest
consumers. This segment is frequently overlooked
when it comes to having or needing DI protection.
Middle market folks can afford DI but they typically
don’t understand the value as readily as
white-collar workers. For many Advisors, your middle
market clients are an untapped resource. Below are
some middle market client profiles you should look
for.
- Individuals and couples ages 30 – 50
- Incomes between $40,000 – $150,000
- Family oriented
- Recently married
- New parents
- Homeowners
- Risk adverse – having something to
protect and not wanting to risk financial loss
Middle market occupation or job titles
could include:
- Accountants
- Chiropractors
- IT Professionals (i.e., Project
Managers, Business and Systems Analysts, Network
Engineers, Database Administrators, etc.)
- Mid-Level Managers
- Nurse practitioners
- Physician Assistants
- Physical, Respiratory and Occupational
Therapists
- Software/Web Developers
- Teachers – especially Post-Secondary
Teachers (i.e., college and university professors,
graduate assistants, etc.)
Good Places to Find Perspective Clients
Current clients – You already have
a pool of prospective DI clients. Search your book
of business and look for clients who fit the middle
market profile mentioned above. Also, clients who
have recently experienced a life event, such as
getting married, becoming new parents or buying a
home, may feel they’re ready to make financial plan
changes.
Civic organizations – Join a
local civic organization – think Lion’s Club, Rotary
Club, local Chamber of Commerce, etc. – and make
yourself known to the members of your community.
However, don’t join an organization only to find an
unsuspecting crowd for a sales pitch – they’ll see
right through you! Find an organization you’re
interested in, an organization doing something in
the community you believe in or a group of people
you relate to.
Professional Associations – Don’t
forget about professional associations like state
and county bar associations and local chapters of
national organizations like the American Institute
of CPA’s, the American Medical Association, etc.
Placing ads in newsletters and offering to speak to
members during meetings are great ways to get leads
and start the conversation with a new audience.
Referrals – Don’t forget the tried
and true… ask everyone you talk to – family members,
friends, neighbors, clients – if they know someone
who could benefit from the services you provide.
Step 2: Show the Need for Disability
Income Insurance
This is the most
important but often overlooked part of the
pitch. Be sure to talk about the need for disability
income insurance before
jumping to the solution. Most clients don’t
even realize protecting their income is a
problem. They’ll need to understand the
problem before they’ll be receptive to a
solution. Talk about what’s at stake for
them personally if their income suddenly
stopped.
Start by finding out what’s important to
your client. The things they value most –
their family, home, financial plans, kids’
college funds – these are the priorities
they’ll want to protect. Based on your
conversations and knowing your client, you
can help clients identify the things that
are at risk if they were unable to earn an
income.
Step 3: Provide the Solution
At this point, your client has
determined what is most important to them.
They’ve considered the risks and the impact of
losing their income. Now is the time to discuss
how disability income insurance can help provide
the solution. However, clients don’t want to be
“sold.” They want someone who can explain how
disability insurance works, help them consider
the various levels of protection and feel
confident that they’re making the right
decision.
TIP: Help your clients consider
how soon they would need benefits to begin and the
length of time they’d like to be covered.
Waiting/elimination and benefit periods for
disability income insurance policies affect the
premium. Every situation is different and it’s
important for clients to feel they have coverage
that meets their need and fits their budget.
Step 4: Deliver the Policy and Plant Seeds for
the Future
Policy delivery is the perfect time to
demonstrate your professional value and
excellent customer service. Be sure to highlight
how smooth the process was… and ask for
referrals.
dibrokerWest receives future purchase
options and annual update notices from most of
the carriers we work with. When we receive these
notifications, we’ll email them to the Advisors
who can present the opportunity to their client.
Delivering the policy is the final
step for this transaction. While you’re
closing this transaction, it’s a perfect
opportunity to cultivate your long-term client
relationship. Don’t forget to mention future
purchase/upgrade options for this policy (if
applicable) and other services or products that
might be relevant to their situation. Remind
clients that their income is now protected
against an illness or injury.
|
If you
have additional questions about how to sell disability
income insurance, please contact your local dibrokerWest
Sales Representative. If you’re not currently working with
a Sales Rep, please give our office a call or check out
the interactive map on our Contact Us to find
your local Sales Rep.