Include the FPO in ALL Disability Insurance Quotes.
Disability insurance agents: Did you know that if you’ve sold paycheck protection policies that contain a Future Purchase Option (FPO), every anniversary date represents your chance for a repeat first-year commission? Yes, it’s as simple as it sounds.
Below is everything you need to know to give yourself a raise!
AT TIME OF SALE: When you prepare a disability insurance quote, make sure it includes an FPO rider. This option (also referred to as guaranteed insurability) allows policyholders to purchase additional paycheck protection coverage without the need for a medical exam or blood tests. The Future Purchase Option rider is a win-win for everyone!
60 DAYS PRIOR TO THE ANNIVERSARY: Maintain a calendar of your clients’ anniversary dates. Sixty days prior to the anniversary, send your client a letter informing him that he has a rare opportunity to increase coverage. Ask the following questions in your letter:
- Has your income increased over the past year? If you were disabled, would you now require a larger disability benefit?
- Have your obligations increased over the past year? For example, if you’ve purchased a new home or you’ve had a child, would it require more paycheck protection to sustain your lifestyle than it would have previously?
- Can you afford more paycheck protection? If so, it’s smart to get it now before any health issues arise and before your Future Purchase Option opportunities expire.
30 DAYS PRIOR TO THE ANNIVERSARY: Send another reminder letter 30 days prior to the anniversary. In this letter, point out all the latest disability statistics. They’re quite compelling! Also, make sure your client understands that the Future Purchase Option doesn’t last forever. It’s available for a short period each year. Furthermore, the FPO rider expires when the policyholder reaches a certain age, as stated in the policy.
15 DAYS PRIOR TO THE ANNIVERSARY: Call your client, and explain how FPO works. In a nutshell, your client can apply for additional coverage up to $2,000 if his income is high enough. The client doesn’t have to apply for the full FPO amount – he can apply for any amount up to the limit for which he financially qualifies. Make sure to ask about any other DI policies in force to avoid over-insurance.
BEFORE THE ANNIVERSARY: Submit the FPO disability insurance quote application and income documentation (the latest 1040 tax return with all schedules to document income) prior to the policy anniversary date.
AFTER THE ANNIVERSARY: Enjoy your raise! If your client is eligible for additional paycheck protection, a new policy or endorsement letter will be issued, and you’ll be well on your way to enjoying yet another first year commission!
Disability insurance agents: Now that you know about the Future Purchase Option, don’t forget to include it in all your disability insurance quotes. The Future Purchase Option provides a great opportunity to build your income level …. But only if you remember to give yourself a raise!
Want another tip to increase your disability insurance quote success?
Don’t forget to make the MOST IMPORTANT SALE. Learn more here.