Overcoming objections to individual disability income (DI) insurance requires understanding the prospect’s concerns and offering clear, compelling counterpoints. Here are common objections and effective strategies to address them:
1. “It’s too expensive.”
– Response: “I understand that cost is a concern. But consider this: the cost of living without an income due to an illness or injury could be far more expensive in the long run. DI insurance can be customized to fit your budget, and the benefits can provide you with peace of mind knowing your income is protected.”
– Key Strategy: Emphasize affordability through customization and long-term cost comparison. Point out how even basic coverage can protect a significant portion of their income.
2. “I already have coverage through work.”
– Response: “Employer coverage is a great start, but in most cases, it only covers 40-60% of your salary, and those benefits may be taxable. What would happen if that isn’t enough to maintain your current lifestyle or pay your essential bills? An individual policy can fill those gaps and ensure you’re fully protected.”
– Key Strategy: Highlight the limitations of employer-sponsored plans, including reduced benefits, taxation, and lack of portability if they change jobs.
3. “I’m healthy and don’t think I’ll need it.”
– Response: “That’s great to hear! However, disabilities are often caused by unexpected accidents or illnesses. In fact, 90% of disabilities are due to illness rather than injury. The best time to get DI insurance is when you’re healthy, as it’s easier and more affordable to qualify now than after a health issue arises.”
– Key Strategy: Use statistics to show that even healthy people can experience disabilities, and that insurance is more affordable when obtained early.
4. “I can rely on my savings if something happens.”
– Response: “Savings are important, but have you considered how long they would last if you were out of work for six months or more? Most people would deplete their savings quickly. Disability insurance acts as a safety net, protecting your savings and keeping you financially secure while you recover.”
– Key Strategy: Help prospects visualize the impact of prolonged income loss and how quickly savings can be depleted. Offer DI insurance as a way to safeguard their savings.
5. “Social Security Disability Insurance (SSDI) will cover me.”
– Response: “Social Security Disability Insurance can be very difficult to qualify for—about 65% of initial claims are denied. Even if you do qualify, SSDI payments are often much lower than your current income, and it can take months to start receiving benefits. Individual DI insurance provides faster, more reliable income protection.”
– Key Strategy: Educate prospects on the limitations of SSDI, including the difficulty in qualifying and the lower payout amounts compared to their actual income.
6. “I don’t fully understand how disability insurance works.”
– Response: “I’d be happy to explain! Disability insurance is like income protection. If you become sick or injured and can’t work, the policy provides you with a percentage of your income so you can still pay bills, cover living expenses, and support your family. It’s designed to give you financial stability during difficult times.”
– Key Strategy: Simplify the explanation and make the product relatable. Offer to walk through scenarios or provide a personalized illustration.
7. “I’m more concerned about life insurance right now.”
– Response: “Life insurance is vital, but disability insurance is equally important because the likelihood of a disability during your working years is much higher than an early death. In fact, you’re three times more likely to become disabled than to pass away before age 65. Disability insurance protects your ability to earn and provide while you’re alive.”
– Key Strategy: Use statistics to demonstrate the higher likelihood of a disability and explain how both life and DI insurance work together to provide comprehensive protection.
8. “I don’t want to deal with more insurance paperwork.”
– Response: “I understand that paperwork can feel overwhelming, but the process for DI insurance is straightforward, and I’ll guide you through it every step of the way. Plus, once it’s done, you’ll have the peace of mind knowing your income is protected.”
– Key Strategy: Reassure the prospect that the process is simple and stress-free and emphasize the long-term benefits of coverage.
9. “I don’t think I’d be out of work for long if I got injured.”
– Response: “That’s great optimism! However, many disabilities are not short-term. Even a moderate injury or illness can take months to recover from. DI insurance ensures that even in unexpected long-term situations, you’ll still receive a paycheck.”
– Key Strategy: Address the uncertainty of recovery times and emphasize that DI insurance covers both short- and long-term disabilities.
By understanding and addressing the root of each objection with facts, personalized examples, and reassurance, you can effectively overcome resistance and help prospects see the true value of individual disability income insurance.
Ready to Get the DI Conversation Started?
Source Brokerage, Inc can coach you every step of the way from the sidelines, or we can get in the game to help you offer disability coverage to each and every client. And you and your clients are the winners.
Learn more about marketing and selling DI, contact Steve Crowe at ext. 222, or request a quote.
