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.
Now you know the five mistakes that can derail your disability insurance quotes. Don’t let it happen to you. Know the underwriting secrets and earn your DI pot gold.
