A popular question in the insurance world is: which should we insure, the golden eggs (home, boat, cars) or the goose that lays the golden eggs? The answer is simple, we insure all of them! Without insuring the income, nothing else would be possible. Most brokers in the insurance industry today specialize in many lines of insurance to safeguard your client's best interests. Adding individual disability insurance to your portfolio is the best way to protect your client's way of life.
There are many objections or excuses for client's hesitation I've heard over the years (I'm sure you've heard them all before), including:
- I have disability through my employer.
Many do not realize that group disability may not be portable or that the benefits that come to them are a taxable event, so when they receive their benefit check, they are shocked. Also, most group disability policies do not consider any bonuses the employee might be receiving on an annual or quarterly basis.
- Social Security will take care of me.
The government defines disability as being life-long or ending in death. The overwhelming majority of social security applications are initially declined, leading many to hire an attorney to help them get any benefit. The average time frame to receive a benefit from social security is 2 years. Unfortunately, most people don't have 2 years of savings to keep their bills paid.
- I don't have any spare money for another insurance policy.
Times are tough especially with the increase of health care. The average American is struggling to pay their bills and get by month to month, which means they can't afford not to have their paycheck protected. There are affordable options for everyone, no matter their income. Sell your client enough to cover their mortgage and necessities.
The truth is that over 50% of home foreclosures and bankruptcies are due to a disability, critical illness and medical bills surrounding these conditions. Only 2% are due to death. Life insurance is very important because it will save the family and the house if the client dies... But what if they don't die? What if they can't work for a year or more? These are conversations you should be having with your new and existing clients.
There are so many opportunities in the disability market. URL can help you get started with the right marketing tools, or you can refer your clients to us. Not only will you gain another line of business which will solidify your current relationship with your client, but you will help them protect their most valuable asset and your bottom line. Remember, if you aren't asking these questions, another broker is.