You are probably more than familiar with the most common objection to disability insurance; “I have disability insurance at work.” That comment reinforces exactly what industry studies have been telling us about disability insurance awareness; most people don’t understand disability insurance.
As all great sales professionals know, objections are the gateways to opportunity. If people really aren’t interested, they simply say “No thanks, I’m not interested.” On the other hand, if they throw you an objection, they’re interested in your response. To help you make the most of this gift, below are three questions to ask, to help you further the conversation and educate the prospect.
Response Question #1:
Does your disability insurance provide a benefit until you are able to return to your current occupation or until you are able to return to work in any capacity?
More than likely, the employer sponsored disability insurance will provide a benefit until the insured is able to return to work in any capacity not necessarily the work they were trained to do. Consider the attorney who is unable to perform the duties of the position held prior to becoming disabled. After rehabilitation and maybe occupational therapy the former attorney may be able to work in a less demanding profession but one that pays significantly less. Once the insured can return to full time employment, the insurance carrier has met the contract obligation and benefits will stop. Most people, including some financial professionals, are unaware of the distinction.
Response Question #2:
What percentage of your salary will your disability insurance replace?
A common group disability maximum benefit is 60 percent of salary. If the employer pays for the disability benefit, the benefit is probably subject to income tax. And as long as the client remains employed, the cost of health insurance and other employee paid benefits still need to be paid. Help your client think through the sizable shortfall in income that remains. Use the income diagram in our Wealth Preservation Plan to show them exactly why 60 percent is much less than 60 percent. Make the point that unlike employer-paid benefits, individual disability insurance benefits are typically not subject to taxes.
Response Question #3:
Do you count on your bonus to meet expenses?
Even the most financially disciplined clients probably have plans for their bonuses. It may be a key part of retirement savings, building the college fund, or funding the family vacation. Ask your prospects if the group disability insurance includes bonuses in the definition of salary. Most do not. Speaking of retirement, you may also want to discuss the impact a disability may have on the client’s retirement plan. Matching 401(k) contributions may be suspended. The client’s own 401(k) contributions may be beyond reach if the group disability income insurance benefit leaves a gap in income.
Once prospects understand that group disability insurance may not provide the level of protection originally thought, they will be more open to individual disability insurance conversations. Make sure to also mention portability. These days, workers frequently change jobs, freelance or explore self-employment. Individual disability insurance allows them more flexibility and security in these scenarios.
Your DIS representative has the answer to any questions you may have about products and benefits offered by our choice disability income carriers. Call us today for a quote or to learn more. And, for more tips on how to overcome sales objections, download our Business Bonus Pack.
