Why Should You Sell More DI in 2012?
There are more than 300 million people living in the US, and 160 million of them earn a living in the workforce. Of those 160 million, 120 million do not have any form of income protection insurance other than Social Security. Odds are that your next phone call will be with someone who needs DI. Just ask them.
What impact has the economic downturn had on the DI market?
Many industry people believed claims would increase, and they have, but nowhere to the level expected. Many thought DI would be harder to sell due to the premium costs, but in comparison to Life sales, Disability sales have been the winner over the past few years. Perhaps the fact that unemployment peaked around 10% heightened the concerns for income protection.
Who do you see buying DI currently?
The easiest markets to sell to are those in professions that deal with sick or hurt people. They are understandably more receptive to the fact that disabilities can and do happen. Doctors have always been believers in DI, and the attorney market has increased significantly. However, the middle market remains devoid of real help and offers a fantastic sales opportunity for professional agents.
In light of the economic downturn, how should insurance reviews be conducted with clients?
They should be done semi-annually. Coddle your clients. Show them that you are genuinely concerned about their financial health. This added attention also gives you another opportunity to sell if your clients’ income has increased and they need more coverage.
What should I be looking for in a good DI company?
Service, and service. You need a team player that understands both sides of the deal. You need a company that has an altruistic attitude, especially when it comes to claims, because paying claims is the best marketing program possible.
What are some resources available to agents who aren’t experienced in the DI realm?
Your local Broker General Agent (BGA)
The International DI Society (IDIS)
The Life & Health Insurance Foundation for Education (LIFE)
The Council for Disability Awareness (CDA)
The American College
What are some tools that can be useful with clients and prospects?
Personal experience plays a big motivator, whether it be the client’s or the agent’s story. Getting the client to relate to disability can make the difference. Visual media, like printed materials and videos, can paint a vivid picture of the importance of DI. Interactive devices such as online applications and insurance needs calculators can illustrate a client’s options for budgeting and purchasing.
What are the risks that agents who do NOT sell DI face?
They could lose clients because another agent informs their clients about income protection with the use of Disability Insurance.
Do you want to have to explain to a newly disabled client why you never discussed DI with them? Keeping these points in mind will lead you to a prosperous 2012. Contact our office or visit www.piu.org to learn more.