Financial planning is a two-tiered process: build the plan and safeguard the plan. Most financial professionals, insurance brokers, and their clients understand the need for income protection in the event of an untimely death. However, many financial professionals and insurance brokers neglect to discuss income protection with their clients in the event of a disabling sickness or injury—the greatest risk for clients in their working years.
Finding the Right Words
Not sure how to enter into a disability insurance discussion with your clients? Here’s an approach to use with your life insurance clients:
“You’ve protected your paycheck in the event of an untimely death with a life insurance policy, but I’m concerned that your paycheck may still be at risk. Let’s discuss income protection in the event you become too sick or injured to work for a period of time.”
Research shows that clients are concerned about protecting their paycheck; yet, they do not think about asking financial professionals about disabiltiy income protection. This is your time to shine. Educating your clients about the risk, and the various disability income options available is a service your clients will appreciate. For some, it will mean helping them see the risk. For others, it may be reviewing their employee group long term disability plans to determine if the plan offers adequate protection, and if not, providing some supplemental individual coverage to maximize protection.
If your clients are self-employed, you can also discuss protecting their businesses with keyperson disability income, business overhead expense, business loan protection and buy-sell protection.
Your clients will appreciate that you have protected their financial plans from the risk of an untimely death and the risk of a disabling illness or injury.
So what is the value to the broker? You gain grateful, trusting clients as well a strong income stream from disability income sales. First year commissions on individual disability income policies is 50 percent of the first year premium, and 5-10 percent renewals for ten years or longer. It’s a win-win for you and your clients.
Enlist the Help of Your DI Experts
Remember to use the resources available from Source Brokerage Inc. We’re happy to assist with all aspects of the sale, and we’ll even sell the policy.
For more DI tips and sales ideas, contact Steve Crowe at ext. 222, Ellen Crowe at ext. 223, Brian Hettmansberger at ext. 230, or Chris Bussey at ext. 220.