Overcome Objections to Disability Insurance with this Simple Question
- By Shane Milner
- December 15, 2015
Would you insure this dollar for two cents?###
What type of insurance coverage is most often overlooked by agents and advisors?
Disability Insurance - because most clients, and agents alike, are not sure exactly how it works and what it protects. It is an absolute necessity and can easily be sold using the following information.
How will your family be supported?###
Anyone who supports their family always worries about the worst-case scenario: How will my family be supported if I die?</span>
Of course, life insurance is the answer.
However, rarely does anyone think about the opposite scenario: How will my family support ME if I am disabled?
The answer to that would be disability insurance. It provides income to you and your family in the event you are disabled and unable to work.
Why should you own disability insurance?###
If you are disabled and unable to work, how will the bills get paid?
If you are the sole provider for your household, will your spouse have to go back to work?
When will they have the time if they are now responsible for taking care of you?
Who will watch after the kids if your spouse has to go back to work?
How can you afford childcare if you do not have an income?
These are all questions your clients need to be asked.
Disability insurance can save a family in a time of need.
### What about your business?### Disability insurance is not just for your family; it can also help your employees and their families. If you are a business owner and you become disabled, can your business survive?
A business overhead expense (BOE) policy is the answer. A BOE can provide much-needed cash to take care of all overhead expenses.
The benefits received from the insurance company can be used to pay for rent, utilities, payroll, taxes, postage, insurance premiums for employee’s health care and much more.
What will it cost?###
Disability insurance costs can vary depending on the client, but most will see a cost between 1.5-3% of their monthly income.
Ask your clients: “Would you insure this dollar for two cents?”
That simple question will make your client think about how practical it can be to implement disability insurance.
There are also added riders that your client may be interested in.
The catastrophic disability rider or (CAT) is a very inexpensive rider that we suggest adding to every policy. The CAT Rider will provide an extra benefit amount if the insured can no longer perform two or more basic daily living activities.
### What is the commission?### Most disability policies pay commissions up to 50%. There are also renewals for the lifetime of the policy that can range from 5% to 15% of the commission.
Disability insurance can be a great revenue stream for any agent for years.
How much disability coverage does your job provide and how does the plan work?####
This is a great way to segue into the disability conversation if you are already talking about their insurance needs.
Most clients feel auto, health, home, and life insurance policies are the only needs they have.
However, if you ask them this one simple question, it will usually make it apparent that the most important asset they have, their earning potential over time, is totally unprotected or at the very best under protected.
No one would buy a house and leave it unprotected, why would they take that risk with their most valuable asset?
How much of the risk do you want to self-insure?####
This is a great question for business owners. They have a default setting that says they will keep getting paid by their business whether they work in it or not, therefore they do not need disability insurance.
Asking them this question can start an important conversation because the reality is their business is not the same when they are not there.
If things can get chaotic when they take a week or two off for vacation how much worse will it be if all their employees know they are out for an extended period of time?
To learn more about disability insurance, as well as other products offered by The Milner Group’s Health Division, click the button below.
p.s. To see the real-life impact of disability insurance, see the video below
p.s.s. This is a great video to show to clients