The financial consequences of a disability can be greater than those of a premature death. Why? Because a disabled person is still a consumer and, in many cases, medical and living expenses increase. If care is required, then an even greater financial and emotional burden is placed on the family of the disabled person, which is why a disability is known as the “living death.” The financial and emotional consequences are terrible and will affect your clients, their families, their businesses and their business partners! Also keep in mind that disabilities are five times more likely than death prior to age 65 (Social Security Administration, Fact Sheet, March 18, 2011).
Now let’s talk about the benefits of marketing individual disability and long term care insurance. Would you prefer clients with high incomes and assets, or clients without high incomes and no assets? If you plan on making your career selling insurance, would you prefer to sell products like term life insurance, which pay no renewals, or products like disability and long term care insurance that pay lifetime vested renewals? Disability and long term care policies stay on the books into your retirement with no agent of record commission transfers allowed. A consistent disability and long term care producer can build a six-figure renewal income!
Selling and promoting disability and long term care insurance is working smart.
Here is another reason why selling disability and long term care is smart—and I have never heard or read this one before, I have only experienced it.
Do you know anyone who has ever collected on their own life insurance death benefit? Of course not, they’re dead! People buy life insurance for someone else. That in and of itself is difficult to do. They do not really want to do it, but they have to.
When you are selling disability or long term care insurance, your prospects know that they will be receiving the money. You are helping them, and they appreciate it.
Upon delivery of disability policies, many times the clients get out their life insurance policies and say, “What can you do with these?” You have fulfilled a very important personal need, and your clients will be more than happy to allow you to review their life insurance and most any other insurance topic that you want to discuss.
Have you ever thought about what you will do if one of your clients suffers a stroke or is involved in a serious accident? Will you (1) send a sympathy card and say that you are so sorry or (2) say, “Here is your first monthly check for $5,000”?
Set Yourself Apart from the Pack
Set yourself apart from the other life insurance agents by discussing disability and long term care planning. Contact prospects with high incomes, those with assets such as business owners and other professionals. Talk about their income, their ability to work and protecting their loved ones.
Ask them about what is important to them and what their most valuable asset is. This is what matters most. A discussion like this will also lead you to business applications for disability and business succession planning.
For each disability insurance need there is an equally important life insurance need. These needs are for income replacement, overhead expense, key person and buy/sell insurance planning.
Never forget that most large estate tax life insurance policies are sold to business owners, who are the perfect clients to work with because they are more accessible and make decisions quickly.
You do not have to be an expert to be successful in this market. All you need is passion, a couple of true stories and the ability to identify good prospects. Network among these people, and ask for some referrals after each sale. Professionals are busy and isolated; they gravitate toward warm referrals.
Don’t accept that a prospect already has disability insurance. Ask to see the policy! In the majority of cases you will find that most do not have adequate disability insurance.
Once you have identified a good prospect, find a good independent BGA who understands the disability and long term care marketplace and represents multiple carriers. Then get the product training that you need to present the case.
You will learn very quickly what disability or long term care product is best for your clients. Don’t think you must wait to be an expert before you get started or you may never get started. All you need to know is that if a client becomes disabled and cannot work, or if this person becomes sick and needs long term care, his family will be in serious trouble. That is it, nothing more—just your sincere desire to help clients protect their families and their businesses. Always remember, before people care what you know, they want to know that you care.
Now I can hear you saying, “But disability and long term care insurance is so expensive! I have trouble selling it.”
I recommend always starting by showing half a plan with a two-year benefit period. Everyone can afford such a plan, and some coverage is always better than nothing. If you try this, in all likelihood your prospects will say, “Yes, I can afford that, but what if I need this for more than two years?” Many times they end up selling themselves on a five year or longer plan!
Last is landing that big multiple life case. If a client is part of a professional practice (physician, attorney, etc.), why not offer to plan for other partners and management level employees in the company? Explain that discounts are available for others in the group who purchase policies.
Multiple life cases offer the greatest opportunity for income because these are the cases that keep on giving. You can even get guarantee issue underwriting offers. Each year new hires can be added to the plan. Plus, as incomes increase, benefits increase—and so do your commissions. There will be new first year commissions each year and increasing renewals year after year, plus no agent of record commission transfers are allowed!
Now that is working smart!
So which individuals or companies do you know that you can approach about the need for disability insurance or long term care insurance planning?
