With the help of Victor Cohen, this is part of our ongoing series with Eugene Cohen, founder of the Eugene Cohen Insurance Agency, Inc., 2009 Honoree International DI Society W. Harold Petersen Lifetime Achievement Award, 2015 Honoree of NAILBA’s Douglas Mooers Award for Excellence.

From time to time, we will feature an interview with Eugene, who has dedicated over 60 years of his life to learning, teaching, and supporting brokers in the agency’s quest to help consumers protect their incomes from the tragic effects of a disability. 

Disability insurance (DI) is one of those products that can change the trajectory of an individual and a family’s life and is crucial for every financial planner and insurance professional to learn about and offer to clients.

Victor: With all the many years you have worked in the Disability Insurance Industry, please share with me something important you may have learned early in your career that still has an impact on you.

Eugene: I will always remember the first day I started working in the Disability Insurance business. I was in my early 20s, out of college, excited and motivated to begin my career. 

The insurance agency manager who hired me told me that my job as a producer was simple. “Eugene, just make sure your clients understand why they need Disability Income Protection Insurance. Answer the question, ‘Why?’ That’s your most important responsibility. When the client understands the need for DI, they will want it.”

That word, “why,” has stuck with me ever since. There is always going to be a reason “why” we need something. And it’s our duty to provide the answers. 

But not only does a producer need to understand why their client needs the product the producer is offering, the producer needs to believe in the product themselves. 

Victor: So, I have to ask. Why do most clients need Disability Insurance? 

Eugene: Well, if a client were disabled and could not work, naturally income would likely stop or be greatly reduced. So, the client would very likely need to replace a portion of that lost income to cover life’s non-cancelable financial obligations such as paying the monthly mortgage, buying groceries, and paying utilities. 

Victor: There are questions a producer can ask to help the client answer why they may need DI. Can you go over a couple of those questions?

Eugene: The producer can ask their client, “Is earned income important to you?” If they answer yes, then there’s the reason why the client very likely needs an income protection disability insurance policy. Because what often stops when work stops? Income. 

The producer can also ask, “What’s the longest vacation you have ever taken?” Most likely they will answer, “One or two weeks.” Then they can ask the client, “Why don’t you ever take a month or two-month vacation?” Most likely the client will answer that they could not be away from work that long. They would need the income. 

Then the producer can ask them, “Well, what if you could never work again due to sickness or injury? How would you financially survive?”  And there’s the answer why the client very likely needs Income Protection Insurance. 

Victor: I know that you are a student of life. And you recently had a personal experience that in some ways reminded you of the relationship a producer has with their client. But in this case, you were getting your annual review from your air conditioning service person.

Eugene: That’s right. Where I live it can get extremely hot, well into the 100s in the summer. So, every year we meet with our air conditioning person for an inspection and review. 

Victor: Much like a producer meets with their client for their annual review. 

Eugene: In some ways, yes! So, this individual came out, looked at our air conditioning units, and then told us that we needed to replace one of them.

Victor: And all the units are blowing beautiful, cold air right now, right? No problems? 

Eugene: They’re working perfectly. So, naturally, my wife and I were surprised by the service person’s recommendation. We asked, “Why?” Why would he suggest we need to replace a seemingly perfectly working AC unit? Why would we think for a second of spending a ton of money on a new one? 

Then the service person did something very familiar to me. To answer “why” we needed a new unit, he asked us questions. “Mr. and Mrs. Cohen, what would happen if the unit stopped working during the summer?”  The answer…we knew all too well. Our expensive wood floors could get destroyed by the brutal summer heat–especially if we were out of town for a while.

The service person also pointed out that the unit was quite old and well past its warranty. The unit was clearly living on borrowed time. Another fact that we had not realized. 

The service person pointed out that while the unit was blowing cold air today, that was only due to good fortune and luck. The service person asked us other very good questions to help us see why there is a very legitimate need for us to replace the unit. 

Victor: So, are you getting a new AC unit?

Eugene: We are thinking about it. And only because the service person was so prepared with his answers about why replacing the unit actually makes sense. 

The experience reminded me of what a good producer does. The producer has an annual review with their client. When the producer sees that DI is needed, they help the client understand why DI is needed. While a new AC unit may perhaps save my floors and keep me cool in the summer, a DI policy could protect a policy holder from financial ruin. 

Victor: As we know, there are some producers who do not bring DI up in their client reviews. Let’s answer that “why.”  Why do producers need to bring DI into the conversation with clients?

Eugene: Because DI is an important product that the client should have the opportunity to purchase. 

Imagine a producer gets a call from a client’s frantic spouse who says, “My husband had a very serious stroke and there is a good chance he will never work again. Do we have one of those policies that will pay us some of his lost income?”

The producer will have one of three answers. 

The first answer is, “No. That product is called a Disability Insurance Policy, and I never presented it.” That is obviously not a good answer. 

The second answer is, “I presented that product to your husband, but they said they were not interested. They signed an acknowledgement that I presented at that time saying that they chose not to apply.”

The third answer is, “Yes, I presented DI to your husband, and he has a disability policy. We can put the claim into the company to see if it is a qualified claim.”

Victor: This has been such a great conversation. Thank you, as always. Before we go, is there anything you would like to add?

Eugene: I think about why I went into this business so many years ago. And the reason I went into it then…is the same reason I am in this business today. And that reason is to help people. 

Many clients need Disability Insurance. Things happen. Life can be unpredictable. Knowing I have done all I can to tell people about this amazing product that can help clients protect what is often their most valuable asset–their ability to earn an income–is extremely rewarding.