When you sit down with a client or prospect, you need to gauge their needs, comfort level, understanding of risk exposure and willingness to budget resources to protect the real need. Use these questions to start the conversation about disability insurance.
How much is needed?
You may think your work is done if you ask the person, “do you have disability coverage provided by your employer?” If they answer yes, you breathe a sigh of relief and move on to the next question. I challenge you to ask a follow up question, “do you know the details of your group plan?” You do not have to be the expert, utilize the resources of Target Insurance to assist.
- Consider the income your client earns, could they live on only 60% and likely less since the benefit may be taxable if received?
- The resources below will better prepare you to ask just one more question, trust me…your client will appreciate your efforts.
How long can I wait until I really need an income?
The elimination or waiting period is the number of days that the person feels they are able to manage before an income must begin to help pay the bills and meet financial obligations. Emergency savings,+ friends, family may be able to help support the person in need, but that may last for a limited period of time. Ignoring the consequences is not a good plan.
How long do I need the income to last?
The benefit period you select is also to your discretion. You may feel that your spouse can make up the difference of your lost income or don’t think your disability will last until age 65. Many options are available, 2 , 5 or 10 year periods or age 65, 67 or 70. Consider the options and the impact to the premium to determine an option to suit your feelings, needs and budget.
How much is it worth to me?
The reality that we may not be able to work for an extended period of time is not one that a person ever wants to consider can happen to them. Unfortunately, we do not get to control many of the events and circumstances of our life. The emotion topic of the “what if” scenarios must be addressed with any prospect or client and should not be ignored. As a risk protection specialist, insurance agent/broker, financial advisor or any other title used, you have a responsibility to ask each person you meet with, “how much income are you willing to commit to protect the people you love, if death or disability were to occur?”
Use these flyers with your clients to help explain the facts about disability insurance and why it’s important.
- Common Objections – Common client objections with rebuttals for disability insurance.
- Ten Reasons Not to Buy Disability Income Insurance – Your clients may have reasons for not buying individual disability income (DI) insurance. But do they know the facts?
- Are You Protecting Your Most Important Asset? – Are your clients protecting their ability to work and earn an income?
- The Simple Decision to Protect Your Income – A simple way to look at the benefit of having disability insurance.
- What Are Your Top Priorities? – A comparison of the cost of keeping up with modern technology and disability income cost.
- Determining Your Human Earnings Value – The Human Earnings Value represents the value of a lifetime of earned income.