At DIS, we’re on a mission to ensure that every working American has paycheck protection … UNLESS they don’t need it.
At this point, I’m sure you’re asking, “What working American does NOT need income protection?” After all, you’ve seen the sobering statistics, you know the chance of disability due to injury or illness is quite high, and you realize that disability is one of the leading causes of bankruptcy and foreclosure.
So, with these thoughts in mind, it seems like EVERY working American should have some form of paycheck protection – right? Almost.
In fact, there are two groups that do not have a need for paycheck protection.
- Clients with high net worth in excess of $6 million: High net worth individuals usually have the means to pay for their expenses outright if they become disabled. Why would they waste their money purchasing a DI policy? They won’t. There is NO NEED. Furthermore, many disability insurance carriers won’t even underwrite this type of prospect.
- Clients with a high level of unearned income: If someone has a great deal of passive income — i.e., income earned from rental properties or other investments, he or she may not need paycheck protection. Here’s the rule of thumb: If unearned income is greater than earned income, the NEED for DI is minimal. Unlike earned income that stops with disability, unearned income continues regardless of the person’s physical ability. Carefully assess this prospect’s needs before recommending a policy. In many cases, these prospects are better suited for a critical illness insurance or long-term care product.
If you try to sell paycheck protection to the client groups above, you’ll find yourself dead in the water. In fact, this mistake is #2 on our list of the Six DI Sales Killers. Don’t waste your time selling paycheck protection to people who don’t need paycheck protection.
As for everyone else, PLEASE go forth and spread the word about the need for paycheck protection. The majority of working Americans need it and it’s up to you to tell them about it.
However, when you talk to clients about paycheck protection, take the time to investigate NEED before you sell. To do this, you’ll need ask good questions and carefully review the prospect’s existing policies, including basic, employer-provided coverage. You never want to make the mistake of trying to over-insure your client. If disability insurance coverage already exists, the client may only need a supplemental DI policy or critical illness insurance to help offset the waiting period and cover copays, prescriptions, childcare and other extra expenses brought on by disability.
In closing, I urge you to remember this advice and never forget DI Sales Killer #2: You’ll be dead in the water if you assume that those with high net worth or high passive income need paycheck protection.
Want to know the other five DI sales killers? Download our free report, “Six DI Sales Killers and One-Cure All Antidote” … before you walk the plank!