Why DI Is Important to Your Life Insurance Practice

This agent’s story highlights the financial devastation that might hit your clients if they do not have disability income insurance.

By Thomas C.K. Wong, RHU

In the spring of 1988, I received a call from a dear friend, Dave. He called to let me know that the results of his blood test taken during a routine physical exam were not good, and that he needed further testing.

I asked myself: What did he want to know from me, his friend and trusted insurance advisor? The answer was simple: He wanted assurance that everything will be OK. But it was not, and I did not see this coming.

I failed Dave miserably because I never gave him a chance to “vote” on disability income (DI) insurance. I never asked him to consider it because I didn’t think anything bad would happen to him. After all, he was a young man in his mid-twenties, a licensed architect working for a small firm in Manhattan, with a bright future ahead.

I had sold Dave a sizeable permanent life insurance policy with a waiver of premium. He was later diagnosed with Acute Myeloid Leukemia and never returned to work. For almost two years, I watched Dave and Eva, his wife, experience an emotional rollercoaster ride and suffer through the financial devastation his sickness caused. I wished I had the opportunity to have a “redo.” But I did not.

Keeping my promise

Dave passed away on Oct. 17, 1989. He asked me a week before his death to promise him that I would take care of his insurance for Eva and Suzanna, their 1-year-old daughter. I kept that promise and delivered the death benefit check a month later.

In April of 1990, I joined Guardian Life Insurance Company of America as a disability income marketing specialist. I kept a promise to Dave and to myself to do better, specializing in individual disability income (IDI) Insurance to help agents and financial professionals understand the importance of income protection.

In August of 1994, I was promoted to the Northeast regional individual disability income sales manager. Every day since I received that call from Dave, I have known why and what I need to do: Every agent I meet will know Dave’s story and I’d teach marketing techniques to those interested in IDI to create activity.

Each day, I also help them with the following: each month a DIAM.

Passion. What is the value of our work? We take away people’s worry, fear, anxiety, stress and poverty by delivering monthly checks or a large check to them during a time of crisis — the worst time in people’s lives. The role we play in local communities and the impact it has on the economy and society are tremendous. Remember that you make a difference!

Belief in the product . Own your own DI coverage by taking care of your own house. If you’re not comfortable with IDI, find someone who is and do joint work with that individual.

Process. Make your book of business “younger.” My mantra is, think young, think “long-work” with young professionals and work with them throughout their careers. The sweet spot for IDI is people with white coat or white-collar jobs. They are typically from 25 to 45 years old. It gives you additional opportunities to make new sales, such as exercising medical insurability options, business disability insurance, and/or life insurance opportunities. Working with them also makes your practice “automatic” and provides you with great marketing leverage and profit.

Partnerships. Create alliances with centers of influence (COIs) and become their Life and Health Specialist. These COIs include CPAs, fee-based financial planners, attorneys or independent property and casualty brokers. Relationship-building. Build relationships with industry peers and home office personnel. You’ll learn more by sharing experiences with each other than if you do it on your own. I’m privileged and honored today to call most of the people I work with friends. They have also taught me a lot.

Get ready for DIAM

As I look back on the last 25 years, my region’s IDI sales have gone from $4 million in 1994 to $19.8 million in 2018. Here’s what I found out to be true: The No. 1 reason people don’t buy IDI is not because of cost, the nature of the product or underwriting; it is because an agent never asked them to buy. So, please don’t make the same mistake I did. As my good friend and mentor, the late Ken Wylie used to say, “Let Your Clients Vote.”

May is Disability Insurance Awareness Month. As we approach this month, please give every client and prospect a chance to say yes to IDI and to make every month going forward a disability insurance awareness month. And thank you for reading my story.

Thomas Wong, RHU, works closely with Guardian Life’s distribution system to promote the sale of individual and business DI products. Prior to this, he was the Marketing Services Specialist for five years. You can contact him at 646-235-8439 or at thomas_c._wong@glic.com.