As many producers in our industry have discovered, cross-selling can be a lucrative part of your practice. While many of us out there have a “favorite” line to sell (life insurance, annuities, health insurance, etc.), secondary product lines such as disability income (DI) insurance are unquestionably a vital component of a client’s overall financial plan. However, many producers have expressed frustration at their inability to position these products, and some may have subsequently given up altogether.
As May is Disability Insurance Awareness Month, we’ve decided to address these concerns head-on – read below for the Top 5 Reasons Why Producers Don’t Sell DI (and How to Change This!).
#5 – I’m seeing a lack of opportunities to position DI coverage.
The perceived lack of opportunities is an easy concern to address – virtually every client you encounter will have an income that needs protecting! As a matter of fact, more than 1 in 4 of today’s 20-year olds will become disabled before they retire, and approximately 95% of disabling accidents and illness are not work-related… meaning Worker’s Compensation doesn’t cover them. What better opportunity to position DI coverage?
#4 – I have a fear of rejection and/or client objections.
This is a common fear, primarily due to a producer’s unfamiliarity with either the need for DI coverage, or the products themselves. The fact remains that without disability insurance, a client’s overall financial plan has a gaping hole in it – how do they plan to pay the premiums and other financial costs with a reduced (or even ELIMINATED) income? Making clients aware of the severity of this planning hole is the first step of showing them that the need for DI exists. (And if you still have questions, what better time to give Zenith a call?!)
#3 – Too many other products are available/easier to sell.
It can be true that producers may be more comfortable discussing other products with clients, but no other products have been specifically designed to protect your client’s ability to earn a living. Sure, you could use a wrench to drive a nail… but why not use a hammer, the tool specifically designed for the job? Same goes for DI coverage – nothing is going to be as efficient or effective as the real deal.
#2 – Too many policies are issued with exclusions… or even declined, which could negatively impact the relationship with my client!
To successfully address these concerns, many producers draw parallels between exclusions on DI cases and pre-existing conditions for traditional health insurance. If a client is pre-disposed to a particular health condition, many health insurance companies can still offer coverage to protect a client from the variety of other maladies that could occur. Exclusions play the same role in DI cases. Framing this comparison can make it easier for clients to understand, and more receptive to the sales process.
#1 – The DI application process is too tough/long/etc.
Many DI companies have a simplified underwriting approach that allows clients to avoid having to submit financial information or do a medical exam if they are healthy and are willing to participate in a 30-minute telephone interview. Also, bear in mind that unlike life and health insurance, DI carriers are underwriting a client’s ability to earn a paycheck. This different underwriting model has to take into account different variables than traditional life or health underwriting, contributing to why DI underwriting is perceived as more difficult.
DI insurance is one of the most overlooked major types of insurance – primarily because many people are operating under the mistaken assumption that a disabling injury or illness could NEVER happen to them. This Disability Insurance Awareness Month, take the time to educate both yourself AND your clients as to the huge threat a disability can pose to them and their loved ones (and their retirement!). Still have questions or concerns about DI coverage? Let Zenith be your experts! Give us a call with your next DI case, and let us show you how easy it can be to offer DI coverage to your clients today.