The good news for 2015 is there’s plenty of untapped opportunity for disability income sales. The story revealed by the numbers below has a happy ending for financial planners and insurance brokers, and their clients. According to the Council for Disability Awareness 2014 America’s Income Protection Picture, 57 percent of working adults have no private disability income insurance. From this group, 30 percent said they would buy it if they knew more about it, that number rises to 40 percent for millennials, who will make up the majority of the workforce by 2025.
So why haven’t workers secured income protection for their paychecks? Millennials say they really have not thought about it. Older workers believe it costs too much.
Those in their 20s and 30s trust external sources for financial and insurance information more than all other age groups.
Conclusion: Young 20 and 30 somethings, who will make up the majority of the workforce in 2025, are eager to learn more about disability income protection from their trusted advisers. Once they understand the purpose and the need to protect their paycheck, they will likely pursue a disability income policy.
Young, healthy working professionals are the ideal group for disability income insurance. They have good health, good jobs with plenty of future income growth. Premiums are based on gender, age and occupation, so millennials are at the low end of the premium spectrum.
If most of your clients are in the baby boomer generation, ask them to refer their children to you. Seek out young professional associations and groups where you can offer education or seminars focused on income protection.
The words you use to promote disability income are important, too. A study by MetLife offers some good tips on how to approach the topic, so people will listen. Learn more in DI Words that Work Playbook.
Make disability income a part of your 2015 business plan. The numbers show the DI market–especially with millennials–is the place to focus and increase sales.
Source Brokerage, Inc. is your disability income expert. Call Steve Crowe at ext. 222, Ellen Crowe at ext. 223, Brian Hettmansberger at ext. 230, Chris Bussey at 220 for quotes, tools and sales strategies