Don’t make these disability insurance ROOKIE mistakes!
If you’re not a disability insurance expert, submitting a DI quote can an intimidating and lengthy process. However, there are a few insider secrets that can skyrocket your chances of success, as well as a few rookie mistakes that will undermine your efforts.
Mistake #1: Overstating income on disability insurance quote requests. The gross income level isn’t always what it seems. As a rule of thumb, check out gross pay before deductions for EMPLOYEES. For the SELF-EMPLOYED clients, look at business profit (including owner draws) after deducting business expenses.
Mistake #2: Mismanaging client benefit expectations. Clients will want a DI policy that covers 100% of their pay. On the other hand, carriers typically calculate a benefit amount at 60 percent of gross income. As the broker, you’re the “monkey in the middle” so manage expectations carefully, and get solid income documentation up front. TIP: See D.I. Dan’s script for how to explain the benefit amount to the prospect on page 2 of our free “Underwriting Secrets” report.
Mistake #3: Caving in to client’s income documentation complaints. If your client complains about income documentation for a disability insurance quote, set ’em straight! This is nothing compared to applying for a mortgage loan and the potential value is much, much higher – the policy could pay a million dollars or more!
Mistake #4: Misclassification of the client’s occupational duties. This one is BIG. Many disability insurance brokers write down a job title without asking questions about the duties performed. A misunderstanding of duties can make a huge difference in rates (and in your closure rate)! Always look at job duties – not job titles. TIP: Learn the 12 occupational questions you should always ask on page 4 of our “Underwriting Secrets” report.
Mistake #4: Muddling medical questions. This is no time to be shy. Take five minutes and ask some candid questions – it will shave weeks off the disability insurance underwriting process. If the prospect is uncomfortable, you can offer to have the carrier conduct the interview by phone.
Mistake #5: Submitting sketchy records: Underwriters can smell incomplete information from miles away. Don’t even think about submitting doctors names without contact information! TIP: If you feel awkward about asking questions, use D.I. Dan’s tried and proven script on page 5 of our “Underwriting Secrets” report.