A 2013 LIMRA study revealed that consumers correctly answered only three out of 10 questions about disability insurance. This finding supports what many of you already know: Most consumers don’t understand how paycheck protection works. Unfortunately, complexity and lack of understanding are some of the most frequent reasons for postponing or avoiding the decision to buy. To overcome this indecision, consider the four ideas below.
Step 1: Use education to create paycheck protection interest.
When it comes to disability insurance, consumers misjudge the cost of coverage and their risk of becoming disabled. Focus on these two points of confusion when you introduce disability insurance during a sales presentation.
- Possible conversation starter: Did you know that … 90 percent of disabilities are caused by illnesses rather than accidents? (Use facts from our WOW Infographic.)
- Possible conversation starter: How much do you think paycheck protection costs? It is probably less than you think; the average premium is between 1 and 3 percent of your salary.
Step 2: Offer a question and answer session
Even clients with employer-sponsored disability insurance don’t fully understand their benefits. If you work with employers, offer a complimentary benefit explanation session. When you come to the disability insurance benefit, use the opportunity to compare and contrast their employee-sponsored benefit with an individual disability plan, emphasizing key differences such as taxation and portability. Comparison can be an effective informal education opportunity. Similarly consider using a comparison chart to use during individual client conversations.
- Possible conversation starter: How much protection will your employer-sponsored coverage provide if you are disabled? Remember to take any bonus off the top since that usually isn’t included in disability protection. Then, apply the benefit amount – i.e. 60% to gross pay. Then, take off the taxes. Most people are quite surprised to learn that their take home benefit may be as low as 43 percent or less of their usual pay. Download our income gap diagram to help explain this.
Step 3: Encourage additional paycheck protection research
Direct your client to an industry third-party educational resource like the Council for Disability Awareness or LifeHappens.org. Independent research will validate the information you provide and offers additional explanations, interactive tools and videos. As your client’s knowledge increases so does the possibility of completing a sale.
Step 4: Follow-up with educational materials
Most disability insurance sales occur after at least one follow-up appointment. In fact, most require eight or more follow-ups! Prepare to persevere! When you email clients, include hyperlinks to informative paycheck protection articles and fliers. Create a standardized follow-up system that includes at least 10 touches, spread out over time. Encourage your client to call you with questions, and don’t forget social media. Use these Tweetable facts to continuously spread the word.
When the time comes to present disability insurance quote options to the client, call DIS. We offer you access to major carriers along with complete sales support. Let us know how we can help you be successful.
