how to sell disability insurance

The risk of disability is high, and many workers are unprepared for the financial consequences of an illness or injury. Insurance agents can help people protect their paychecks with disability insurance – earning themselves a nice commission in the process. You just need to learn how to sell disability insurance effectively.

Why You Should Sell Disability Income Insurance

You’ll be more successful at selling disability insurance if you understand why coverage is so important.

If a policyholder becomes disabled and unable to work, disability insurance can replace a portion of the lost income. This is important because the odds of disability are shockingly high. The Social Security Administration says around one in four of today’s 20-year-olds will become disabled before reaching age 67, whereas about one in eight will die before reaching age 67. This means a working-aged individual is much more likely to become disabled than to die. Think about that every time you sell a client life insurance but not disability insurance.

When you add in the fact that many Americans are living paycheck to paycheck, the need for disability income insurance is clear. Instead of taking their paychecks for granted, people need to protect their income with disability insurance.

Selling Disability Insurance Is Good for You, Too

When you sell disability insurance, you help your clients create a financially secure future. You also help yourself to a nice commission.

We crunched the numbers and found that insurance professionals can more than double their commission by cross selling individual disability insurance with life insurance. This is possible in part because individual disability insurance has an average persistency of more than 12 years and you can make additional commissions when clients renew their policies.

By selling disability insurance, you can also demonstrate your value to your clients, which can boost your client retention levels.

Finding Prospects Who Need Disability Income Insurance

Since most workers depend on a paycheck, it’s not hard to find prospects for disability insurance.

  • Cross sell to your current clients. They can be a great source of disability insurance sales. You already have a relationship with them, and they’re receptive to the need for insurance coverage. The Insurance Marketing Email Guide includes email templates to help you cross sell disability insurance as well as critical illness and long-term care insurance.
  • Build centers of influence. By establishing networks with accountants, tax advisors, and other professionals, you can build centers of influence that help you connect with prospects who need income protection.
  • Target key markets. Many workers need disability insurance, but you can focus your prospecting efforts on specific markets. For example, doctors are often prime candidates for disability income insurance because they’ve invested a lot into their careers and have large paychecks to protect. Other professions who need disability insurance include accountants, dentists, nurses, pilots, and business owners. You can also focus on the disability insurance needs of women, high earners, or a particular generation. See our page on markets for a list of key markets and resources to help you create effective income protection campaigns.
  • Cultivate an online presence. When people are interested in buying insurance, they often start their research online. If you have a good website and strong social media presence, some of these individuals might come to you. Explore your website options and download ready-to-share social media posts.
  • Generate referral business. Once you’ve made a few disability insurance sales, referrals are a great way to grow your business. To earn referrals, you need to provide the type of top-notch service that makes clients want to recommend you to their friends, family members, and coworkers. This article has more tips on earning referral business.

Arm Yourself with the Right Sales Tools

Once you’ve found a disability insurance prospect, you need to perfect your sales approach. The right tools can make this easy.

  • Use a proven sales script. First impressions matter – a proven sales script can ensure you make an excellent first impression every time. This presentation kit includes a sales script as well as a pre-approach sales letter and other great resources to support your sales process.
  • Use client handouts. Client handouts are a great way to educate prospects. You can warm up prospects by sending them handouts ahead of your meetings. You can also provide handouts during your meetings and use them as part of your follow-up strategy. To make sure you always have the handouts you need, download the Baker’s Dozen.
  • Provide quotes. When people are thinking about buying disability insurance, they often want to see quotes. Make it easy for prospects to obtain quotes through you with the disability insurance quote engine. Our proprietary Analyzer gives you a side-by-side comparison of three to five top carriers.

Dispel Common Disability Insurance Myths

Although the need for disability insurance is high, some people never buy disability insurance coverage because they fall for common myths.

For example, some people don’t think they need a disability insurance policy because they assume workers’ compensation or Social Security Disability Insurance will cover them. However, workers’ compensation only covers work-related illnesses or injuries and many disabilities don’t qualify. Additionally, the eligibility requirements for Social Security Disability Insurance are strict – the Social Security Administration rejects most applications. Plus, monthly disability benefits may not be large enough to meet many people’s needs.

Other people think the long-term disability insurance they receive through work will be enough to cover them. However, these benefits often lack portability and the customized terms many people need. Plus, the benefits may not be large enough.

Another common misconception is that people with pre-existing conditions can’t secure protection. Although medical underwriting can be an issue for some people, there are other options, including simplified issue disability insurance.

For more disability myths – plus an easy way to counter them – download the Income Protection Myths client handout.

Be Ready to Overcome Price Objections

Price objections are another common source of disability insurance coverage rejections. Many people think disability insurance is expensive. However, when you take into account that it protects a person’s income – often their most important asset – the value becomes clear.

How you present the cost to clients can make a difference. The unit selling method is one approach; the high-low method is another.

You may also need to offer options that fit your client’s budget. Not everyone can afford an expensive income protection policy with all the bells and whistles, but they can still benefit from some coverage. Use our disability insurance quote options worksheet to find a coverage level that works for your clients.

Use a Waiver of Liability

If a prospect rejects coverage, have them sign a waiver of liability. This simple form protects you from accusations of negligence by documenting the fact that you’ve offered coverage and explained why it’s important, thereby fulfilling your duty as an insurance agent. Keep this documentation on file in case prospects ever experience a disability and try to blame (and sue) you for their lack of coverage.

The waiver of liability provides you with liability protection, but it’s also a helpful sales tool. When you ask people to sign this waiver, they may reconsider their decision – if refusing coverage is risky enough that they have to sign of a waiver of liability, they may rethink their decision not to buy paycheck protection. This strategy gives you one more chance to turn a “no” into a “yes” and make a sale.

Receive the Support You Need

Do you need more support as you figure out how to sell disability insurance? Disability Insurance Services is here to help. We offer white glove support and can walk you through every step of the disability insurance process. We love helping agents get comfortable in the income protection space. Get started.

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