Want to close more sales? Start by identifying clients who are more likely to make an income protection purchase. For example, it’s doubtful that someone struggling to make a car payment will find room in the budget for an additional insurance product. So, if that’s not your best target audience, who is?
To answer that question, let’s look at some of the characteristics shared by disability insurance policyholders. They are 30 to 50 years old; professional or semi-professional; have household income of at least $75,000; and a demonstrated interest in preparing for financial security. Many are often life insurance policyholders. And you’ll often see an interest in planning for the future.
With this “more likely to buy” profile in mind, use these four sales strategies to close even more income protection sales.
1. Introduce income protection early in the relationship.
“Begin with the End in Mind” is habit #2 of Stephen Covey’s seven habits. Whatever product you initially discuss with a new client, prepare the client for a follow-up discussion about income protection insurance. Whether your primary focus is personal lines home and auto or life insurance, either product offers a natural segue to disability insurance. Establish the expectation with the client that you will revisit the topic the next time you meet. That tactic accomplishes two things. Your new client now knows that you are concerned with their complete financial picture and that your expertise extends to essential personal finance issues like income protection.
2. Call it what it is.
The word disability conjures images of someone in a wheelchair or a permanent disability that means never returning to work. Certainly disability income insurance provides benefits in those situations but the majority of private disability insurance claims are not for permanent disabilities. Rather most claims are due to illnesses like cancer, auto-immune diseases and other musculoskeletal conditions. Many DI beneficiaries return to work within 90 days. Refer to the situation of an interrupted income and paycheck protection as the solution. Naming the product, disability insurance, too early plays to consumer misunderstanding and interferes with your message to prepare for a very real but usually temporary situation.
3. Focus on the benefits.
There are plenty of statistics about the probability of incurring a disability, the length of the average claim period, and the most common conditions. Yet, recent thinking suggests that it is more effective to downplay the risk scenarios and concentrate on the feelings of security, well-being, and financial responsibility associated with income protection. Income protection is about living life on your own terms even when an unexpected disability strikes. It’s about financial confidence, peace of mind and that ability to continue with the life you so carefully built. Those are the benefits you want to convey.
4. Present an affordable solution.
Preempt premium objections and dispel affordability fears before they are verbalized. Set expectations with the clients by using a ballpark of 1-3 percent of monthly income as the typical cost for paycheck protection – depending on the policy bells and whistles. The client is relieved of the uncertainty of cost and can focus on your message rather than the price tag. Let your DIS representative know to prepare quotes that remain in that premium range. There are several variations on products and features that allow for options that meet both financial need and budget constraints.
Follow these closing tips and you’ll see your closing ratio climb. Need help managing price objections? Download our Sales Strategy Quick Tip #1: Highest Benefit, Lowest Cost. Call DIS for quotes and more sales strategies. You may also want to consider the Delegate to DIS co-selling program. It can be a win-win arrangement for you and your client.