10 Reasons to Talk to Clients about Disability Income Insurance

disability-income-insuranceHave you heard? May is Disability Insurance Awareness month! Focusing on or adding disability insurance to your practice benefits both you and your client. Disability insurance is essential to financial security yet many consumers are unaware of the need and the product. Advisors who have built a career specializing in other products are looking for new revenue but may hesitate to embark on a new product learning curve.

Here are 10 compelling reasons to reconsider DI.

1. The opportunity is wide open. Your clients probably do not hear enough about disability insurance, how it works, and why they need it. In fact, few advisors discuss it. This gives an advisor who cares to talk about it additional opportunity to strengthen relationship by offering a product clients want to buy Many working Americans do not have disability insurance coverage; the number of employers offering disability insurance as part of a benefits package is steadily decreasing. Furthermore, employer-sponsored plans are taxed, often capped and not portable, making them inadequate for most people. When employees leave their jobs, they also leave their employer-sponsored coverage. Seize the opportunity!

2. Disability Insurance is affordable. Clients misjudge the cost of disability insurance. In fact, 33 percent of consumers surveyed by the Council on Disability Awareness believed income protection is important but unaffordable. A disability specialist like Brokers Central, will work with you to design a policy that provides income protection, affordably. Don’t let price be a barrier!

3. Disability insurance prepares clients for life. Clients who understand their risk of becoming disabled, and the financial stress that often follows, may see disability insurance as a need equal to life insurance. Likewise, clients who see the need for life insurance are often interested in a holistic approach to their financial security that includes disability insurance. You’ve prepared your clients for death with life insurance, now prepare them for life with DI!

4. DI is an integral part of a client’s overall financial plan. Most financial plans depend on ongoing contributions. A financial plan will fall short if the expected contributions are suspended due to disability. The significant change in financial position may jeopardize other products in the portfolio you monitor. A disability product that replaces lost retirement contributions might be a sensible first step for you and the client. Lay the foundation for financial success!

5. Stronger client relationships. Your practice benefits in several ways when you talk to clients about income protection. The facts are indisputable. Clients with multiple lines of business are more profitable and more likely to continue their relationships with you. If you recently added disability income to your practice, let existing clients know you have expanded your services. Deploy the discipline of consistently cross-selling.

6. DI + Multi-life Discount = More Referrals, If you don’t talk to your clients about disability income insurance, some enterprising advisor just might. Plus, DI gives your client a proactive reason to give you referrals. If your client introduces two co-workers who also decide to buy DI, all of them will get a 10-15% discount through a multi-life policy. Clients are motivated to offer referrals when you put money in their pocket. Make multi-life DI work for you!

7. Commissions now, very rich renewal income in the future. Disability insurance is a cash cow for an agency. Compensation is very attractive, and unlike the heaped commission structure of life insurance, DI continues to pay a significant renewal commission as long as the policy is in force. For a growing or plateauing agency, disability insurance can be a significant revenue producer. DI policies will pay out as much as 15% renewal commission for the life of the product. No other product in your portfolio even comes close. Reap the rewards!

8. Most everyone can get a policy. There is a DI product for just about any target market. Just as with life insurance, personal lines, and most other insurance products, carriers often favor or specialize in market segments. Today, the industry offers a disability product for just about any client group from blue and gray collar to white coat professionals, and more. Brokers Central will research the best product and carrier for your market. Put our team to work for you!

9. The process can be very simple. Simplified underwriting DI products remove underwriting hurdles. Monthly benefit amounts of up to $7,500 are available for prime buying ages, usually up to 50, and many of the most popular benefit riders are also available. An application, personal health information, and a prescription database check are typically all that is required. This flier from MetLife outlines their product as well as competing products on page 2. Explore simplified DI options!

10. We are DI experts. The last on our list of 10 reasons to talk to your clients about disability income protection could be the number one reason. Brokers Central makes it easy. You don’t need to become a DI expert. Brokers Central is your expert. Think of us as an extension of your agency. With Brokers Central by your side, it’s time to jump right in to the disability insurance opportunity!

The bottom line: Your clients need the security only income protection provides and your practice benefits with increased revenue, improved persistency, and strong client relationships. Brokers Central + Disability Insurance = Increased Practice Value. It’s the winning formula. Call Brokers Central to get started today.