If you sell disability insurance, you have an important job-convince your clients to protect themselves and their families financially in case a severe injury renders them unable to work. This insurance sounds like something everyone needs-but resistance to buying disability coverage is common. Most likely, your client won’t feel an urgent need for this type of coverage-or will already have a low-cost disability plan as part of the benefits they get through work or through a group plan.
Considering the importance of such coverage, though, it’s a mistake to let these objections lie unchallenged. Here are a few common mistakes made in selling disability insurance.
Not communicating the urgency. Maybe you don’t like to be a pushy salesperson-and your client doesn’t want to be pressured. That’s totally understandable. But in the case of disability insurance, not presenting an urgent case can be a mistake. There are several reasons for this. First, the longer your client waits, the more expensive disability insurance will be. Second, it’s possible your client could be seriously injured before he or she feels the need to buy disability insurance.
Not being sure your client understands all the terms. Some disability policies are better than others, and as an agent, it’s part of your job to make sure your clients get the coverage they need-and understand the terms. For instance, there’s a big difference between a policy that says the loss must be irrevocable and one that must be complete. With the complete policy, your client can get paid for an injury that will heal, like a broken leg, but that keeps the client from working. With the irrevocable policy, no payment is possible.
Believing that the low-cost plan your client already has is enough. Many people get disability coverage at lower cost through an employer or a group plan. These plans, however, are often low-cost for a reason. There are often serious limits on coverage that could cause problems for your client later if they do experience a serious injury.
However, it’s also important to be sure your client isn’t over-insured. It pays-for both you and your client-to go over the terms of that insurance, be sure your client knows what’s covered and what’s not, and assess whether there is a genuine need for additional insurance.
Assuming the need with high-income prospects. There are plenty of prospects out there with the earnings to afford disability insurance-and a strong need, as well. But some prospects don’t need insurance as much as you’d think.
For instance, anyone who earns mainly passive income-such as income through rental properties-is not a good prospect for insurance, because their income will likely continue even if they are physically disabled. Much of the time, prospects like this are better qualified for long-term care products that protect them, but not necessarily their income.
Disability insurance can play an important role in protecting your clients’ income if they become disabled. Check out LifeHealthPro and the DI Blog for more resources on selling insurance. Talk to your client, review their income situation and the coverage they have, and determine whether there is a true need for disability coverage-and you’re more likely to make a sale.