Selling DI to Younger Generations
According to a 2014 study by the U.S. Bureau of Labor Statistics, the median age of the American worker is 42.3 years old, yet most disability insurance sales (and the sale of most elective insurances for that matter) are made to employed persons over the age of 45. Therefore, a majority of the insurance-eligible workforce of this country is not receptive to purchasing disability insurance. This discrepancy can be adequately addressed by the fact that older prospects tend to have more experience and wealth. It makes sense that those who are more familiar with the fragility of the human body and those who can afford the coverage easier are more willing to purchase DI.
But this situation is unacceptable, and is in need of reform. The average person actively seeking disability coverage is past his/her physical prime. We see clients purchasing DI decades after they should be shopping, when they are no longer preferred or even standard medical risks. As insurance professionals, only we have the ability to sway this issue, and make income protection insurance more attractive to younger generations and to a broader demographic.
Pitch DI early in a prospect’s career, and remember that disability insurance must be sold. It doesn’t sell itself. Young Americans gravitate toward technology and social media sales gimmicks, but online platforms are only beneficial to those who are familiar with the class of insurance, motivated to buy and are completely accepting of personal accident/health coverage. The biggest problem is that young people generally feel invincible, and are not easily convinced to purchase disability insurance plans. Selling DI to younger clients can be an uphill, but very necessary battle.
A successful attempt to sell disability insurance to younger generations requires two key ingredients. The first is education. Does the client truly recognize the financial hazards associated with an unforeseen disability? Does the client understand the value and benefits of a comprehensive DI plan? The second step is self-relation and personally identifying with the need. Can the client see himself/herself in the horrific state of partial or total disablement? Does the client relate to losing the ability to earn an income, unable to support a family?
These are the types of questions that you as an insurance advisor must ask, answer and explain when you are introducing disability insurance to new clients. It will also help your cause to use a “storyline” pitch. Create a dialogue to relate the story of someone close to you (a client, a relative) that unexpectedly suffered a disability and faced financial devastation. Steer your story to the needs of the prospect so he/she can relate emotionally. Once the prospect personally identifies with the need for the insurance, he/she will enthusiastically be open to the sale.
Petersen International can help you with these and other ideas to help you tap into relatively new and unexplored markets. Call (800)345-8816 to speak with one of our DI sales specialists.