5 Things You Need to Know If You Want to Sell Disability Insurance
- By Shane Milner
- February 16, 2016
Agents enjoy selling disability insurance (DI) for multiple reasons — they help their clients with a little-understood need, they receive reasonable first year commissions, and the renewals are excellent. Explaining why your client needs disability insurance can be quick and easy with the right approach.
Here are 5 things you must know if you want to sell disability insurance.
1) Know Your Client###
Paycheck replacement is a key word that seems to resonate well with certain clients. Some clients hear the word, disability insurance and shy away because of the word disability.
Helping them to see it as “paycheck replacement insurance” is a great and effective way to get them thinking about what the product actually is.
2) Know Your Facts###
Did you know that you have a 1 in 7 chance of becoming disabled? That is a scary, but true statistic. Most clients believe it will never happen to them, but the truth is, it can.
Getting that point across can help the client understand the importance of disability insurance to protect themselves and their family.
If you’d like to tell a real-life story, share this video from LifeHappens.org.
3) Know Your Business###
Is your client a business owner? If so, Business Overhead Expense (BOE) is a necessity. If they are disabled, can the business survive?
A BOE policy will keep the doors open until your client is back on their feet.
4) Know The Product###
All carriers have different options in their products, but most have a few key options that are important for you to learn so you can determine if they are important to your client.
Being knowledgeable of the product is a necessary step in earning the desired reputation of industry expert.
5) Know The Steps###
The steps to selling disability insurance are quite simple.
1) Client Info Basic information is needed for a disability quote. Age, state of residency, income and occupation are the key factors in receiving an illustration for disability insurance
2) The Illustration Going over the illustration with the client in detail is an important process. Knowing the details and riders are important for your clients well being. We are always here to help with this process.
3) The Application Once the client has approved the illustration, we can start working on the application and appointment for agent, if the agent is not already appointed. Some carriers require a waiting period from the time the agent is appointed to the time the client application is signed. This time frame can be as much as 15 days, so getting appointed prior to solicitation the insurance is key.
4) The Policy Once the application and appointments are approved and the client has answered all medical questions from the carrier, the policy will be issued.
Some of you may be thinking, “Isn’t this how all insurance policies are done?” Yes, it is. However, to agents new to DI, it can seem daunting.
Selling disability insurance is a great way to gain new clients and connect with already existing clients. It is also a great way to make a real difference in the lives of your clients while generating additional revenue.