Wondering what an “ideal” income protection client looks like? Of course, the ideal client probably has fiscal discipline and a financial freedom mindset. What else? Consider the characteristics below. Then stay with us for the “reveal” of just who this ideal client is. You may be surprised.
Plans for unplanned financial events
Many clients underestimate the risk of disability. Financial advisors spend considerable time and effort educating clients about financial risks. The ideal client comes to you already concerned about:
- Unexpected expenses like medical or other financial emergencies
- Saving enough for retirement
- Improving current financial status
Even if clients understand the likelihood of a disability during their working careers, finding the money for DI premium in a tight budget can be difficult. Overcoming that challenge is much easier when the client is fiscally conservative. For example, the client might:
- Be a saver rather than spender
- Prioritize paying down debt
- Prefer cash to credit
Values advice from a trusted source
Client referrals are invaluable. Especially in the insurance industry, trust in the financial professional is at the core of the referral. According to LIMRA’s Trustworthy Selling, establishing trust within the first few minutes of meeting a new client is critical. Although not a guarantee, when the client is referred to you by someone they trust, you have an important advantage, particularly when the new client:
- Prefers a face-to-face interaction for important financial decisions
- Prefers not to use online support for financial decisions
- Looks to a spouse, parents, and friends for referrals
The ideal client revealed
Surprisingly, Millennials comprise these attributes and behaviors. As a group, they are financially conservative due to the financial losses suffered by their parents like significant portfolio declines and real estate losses. Millennials are concerned about the uncertainty of financial futures. Yet, many are unaware of insurance products like disability insurance.
Millennials often believe their assets are not large enough to interest a financial professional, yet this generation stands to inherent trillions of dollars in the next two decades. The oldest of this cohort are soon approaching their peak earning years. Your commitment to establishing a rapport will become even more important as the client’s income and financial needs grow. In fact, one national carrier reports that clients initially purchasing disability income insurance had a five times better retention rate.
In this market, presenting a disability income plan that will accommodate increasing incomes is key. Contact DIS to provide quotes that include options to increase the DI benefit as the client’s income grows. You might also want to review Infographic: Millennials and Insurance for more about Millennials and insurance products.
And, for more information about honing your target market, download our free report, “How to Pick the Perfect Prospect: Identifying The Good, The Bad and The Ugly.”