Anyone who DEPENDS ON A PAYCHECK can potentially benefit from disability insurance. Those words “depends on a paycheck” are key. Some people get a paycheck but don’t depend on it because they are independently wealthy or they have passive income streams, such as rental units. Others get a paycheck but don’t depend on it because they live with their parents. Both of these groups are not strong candidates for disability insurance.
On the other end of the spectrum, there are people who depend on their paychecks, but they don’t earn very much and have no budget. These people are also not good disability insurance prospects.
Fortunately, between these two groups, there are many people who are a great fit for disability insurance. Read on to learn how to identify the most promising prospects for disability insurance sales.
The High End
When pitching disability insurance, you probably ask prospects how they would make ends meet if they suddenly lost the ability to earn a paycheck. For many people, it’s a scary possibility. Many Americans live paycheck to paycheck – and we’re not just talking about low earners here. According to MarketWatch, a Neilson study found that 25 percent of families who make at least $150,000 report living paycheck to paycheck.
Many high earners, such as doctors and dentists, may have substantial student loan debt in addition to mortgages, business loans and other expenses. If they lost their income, they could quickly find themselves in a bad situation. They DEPEND ON A PAYCHECK.
How much is too much income? While some people (such as professional athletes or CEOs) may earn more than the limits of a typical disability insurance policy would provide, there are special high-limit policies available. So, don’t automatically rule someone out for making too much money. More importantly, remember to focus on those who DEPEND ON A PAYCHECK, even if they are extremely high earners.
The Low End
Disability insurance is important – but it isn’t free. While it’s possible to find policies that fit the needs and budgets of a wide range of people, some low earners simple won’t be able to afford any premium.
Someone who struggles to pay for car insurance, for example, probably won’t be interested in disability insurance, no matter how much they need it.
As a rule of thumb, anyone earning less than $50,000 per year may not be a prime candidate for disability insurance.
The Goldilocks Zone
Most workers are not independently wealthy, and while finding money for disability insurance premiums might be difficult, facing a disability without insurance would be worse. Therefore, many workers find themselves in the so-called Goldilocks Zone. They aren’t too rich or too poor. Their income is just right for paycheck protection.
So, who will fall into this group? Doctors have traditionally been considered a great market for disability insurance. Other medical professionals, such as nurse practitioners, radiologists, dentists, and even hygienists are also top prospects. Executives and business owners are excellent prospects, and many other white-collar professionals, such as lawyers, engineers and IT professionals are well worth an agent’s time. Highly-trained trade workers such as electricians, plumbers and general contractors can also be good candidates.
More than the occupation, you’re looking for earnings, budget and mindset. You need someone who earns at least $50,000, who DEPENDS ON A PAYCHECK and has some budget. You need someone who believes in the value of proactive financial planning. Most of all, you need someone who values and wishes to safeguard his or her earning power.
Are You Looking for the Perfect Prospect?
If so, there are certain groups you’ll want to target, and others you’ll want to avoid. Download our “Perfect Disability Insurance Prospect” guide now to learn more.