Disability Insurance Sales Ideas: Beware of These Three Disability Insurance Sales Killers
In the past, sailors had a phrase to describe the state of sitting motionless, with no wind to propel their boats. Although you’ve probably heard the phrase “dead in the water” many times, you’ve probably never thought of it in relation to your disability insurance cases. I am right?
Well, here’s your wake-up call: Time to THINK! In the disability insurance (DI) industry, a whopping 30 percent of applications submitted are never placed, they are dead in the water. Some are rejected, some are not accepted by the client, and some never move forward due to incomplete fields or lack of documentation. And that statistic doesn’t include income protection applications that never make it to the point of filing. My guess is that at least 60 percent of sales appointments never result in an application being sent.
How are you charting your disability insurance sales course? Are your cases dead in the water, destined to go nowhere? Do they have the drive to reach a signed and delivered status? Is an annoying headwind interfering with progress? While the sailors of old could do little to control the wind, you can do a lot. In fact, most agents make six critical SALES-KILLING mistakes while working on their files. I will share three of them here. If you’d like to learn about the others, be sure to visit the Disability Insurance Services website to download the full article.
Disability Insurance Sales Killer #1: Marketing to the Wrong Audience
There are several good audiences. They all have one thing in common: they are high earners who have a great need to protect their paychecks. Whatever you do, don’t set your sites on low-income prospects. You will never set sail. Here are some good audiences to consider when selling individual disability insurance:
- Traditional White Collar Market – Consists of doctors, dentists, lawyers, and similar professionals. One way to efficiently tap into this audience is through professional and trade associations and hospital sponsorships.
- Small business owners and freelancers: Many of this audience earn very high incomes and do not have access to group insurance. Efficiently reach this group through professional associations, alumni associations, and trade magazine listings.
- The “sandwich” generation: These people find themselves in between supporting both their children and their elderly parents. Target only those with high incomes and appeal to your obligation to support your loved ones no matter what.
- Dual-income families: These folks have double the income to protect, along with beloved children who require all sorts of expensive indulgences for years to come. Appeal to their altruistic need to give their children every advantage. Consider getting sponsorships from private schools, sports associations, and other places that families trust.
- Baby boomers: This audience is reaching maximum earning power and maximum obligation levels, financing vacation homes and college education. When shopping for a marketing list, go beyond age and income level. Add additional demographic qualifiers, like home value. Many online listing companies offer advance screening capabilities.
- Never married, single parents and divorcees: As the sole breadwinners for their families, these people have no one to turn to in the event of disability. They also may not have significant savings, which makes disability insurance an easy sell. Again, remember to only market to those who have a high income.
Disability Insurance Sales Killer #2: Assuming the Need
Yes, high income is a prerequisite for disability insurance sales, but high net worth is not. In fact, those with a net worth of more than $6 million generally have the means to pay their expenses outright if they become disabled. Why would they spend their money buying a disability insurance policy? They will not. There is no need. Also, many insurance companies will not even underwrite this type of perspective.
Also, be on the lookout for those with a high level of unearned income, that is, income earned from rental properties or other investments. If unearned income is greater than earned income, the NEED for disability insurance is minimal. Unlike employment income that ends with disability, non-employment income continues regardless of a person’s physical ability. Carefully evaluate this prospect’s needs before recommending a disability insurance policy. In many cases, these perspectives are more suitable for a critical illness or long-term care product.
Finally, be sure to carefully review the potential client’s existing disability insurance policies, including basic employer-provided coverage. You never want to make the mistake of trying to over-insure your client. If disability coverage already exists, you’re probably better off recommending a supplemental plan to augment existing paycheck protection policies.
You’ll be dead in the water if you assume that those with a high net worth need disability insurance. Ask the right questions, sail carefully and feel the wind at your back.
Disability Insurance Sales Killer #3: Sell Low Value/High Cost
“You will receive a benefit of $4,000 each month, tax-free, all for an annual premium of $4,500.” These words lead to the bitter end of many policies. That’s because they compare a low denomination value (monthly) with a high denomination price (yearly).
It’s good to sell apples to oranges, but make sure you do it right! In my sales script, The Wealth Preservation Plan, I teach agents how to sell the highest denomination value for the lowest denomination price. By illustrating high prices for lower value items, I increase the value of my offer in the prospect’s mind. For example, when I set the daily cost to protect a $35,000 car or a $400,000 house and then calculate the value of one’s paycheck from now until retirement (typically worth at least $1 million) , the prospect immediately expects the price of paycheck protection to increase. be too tall. I say, “If it’s $3.50 a day to protect your $35,000 car, how much is it worth to protect your paycheck between now and retirement?” Most think it’s worth $10 a day or more. By the time I get to reveal the disability insurance premium (in the lowest denomination, in terms of cost per day), the prospect is amazed and relieved to learn that the coverage is so affordable.
