Ramping Up Your DI Sales

Success can often be found in pairing.

By Dana Campion, RHU

Despite the fact that more than one in four 20-year-olds will become disabled before they retire according to the Social Security Administration, why aren’t more disability income (DI) insurance policies sold?

In conversations with advisors, I often hear these objections to DI sales:

• DI insurance is complicated.

• Prospects don’t believe they’ll become disabled.

Both of these objections usually stem from a lack of familiarity with how DI insurance works and what it covers. Instead of positioning DI on its own, I suggest you consider teaming with another product that can offer a complementary income protection goal.

Think of pairings a restaurant recommends for a great dining experience, for example a certain entree may be better with a particular wine. When clients have an appetite for protecting their income, consider showing them how DI pairs well with these products.

Sell term life insurance?

Many term insurance clients believe there’s a chance death could occur prematurely; so, they need to replace income for loved ones or a business. When determining a face amount, most insurance advisors use an income calculator with the intent to replace income of the deceased so the survivors can pay bills and continue their lifestyle as close to what they’re accustomed to as possible.

In essence, a term life insurance sale is really an income replacement recommendation. But dying isn’t the only threat to their income. Disability may not allow them to work in the same capacity as before. Term insurance alone is not a comprehensive income replacement safety net. Combine term life with DI insurance and you have a more complete income replacement recommendation. It covers your client both in the event they suffer and survive a catastrophic sickness or injury or in case they don’t.

Sell permanent life insurance?

Many insurance advisors recommend permanent life insurance for its death benefit protection, while also illustrating and implementing a long-term plan for supplemental income at retirement — an income replacement recommendation. While the plan begins at issue, time must pass before the policy has built enough cash value where the policyholder can begin taking a supplemental income stream.

This typically means the client as the policyholder must maintain their ability to pay scheduled premiums. What if the client becomes too sick or hurt to work and can’t pay their premium or even cover their ongoing expenses? If their policy doesn’t have a waiver of premium for total disability rider, they may have to make hard choices. Will they need to take income from their permanent policy early to pay bills? How long will it last? The reality is that scrambling to protect their income today by taking money out of their policy can significantly affect their income expectations from the policy in future years.

Recommending DI can help policyholders continue to pay premiums and cover their expenses so that the plan can continue the way it was intended. The permanent insurance plan will help with income replacement when the policyholder retires. The DI will help with income replacement if they can no longer work prior to retirement. Permanent insurance, paired with DI, can provide a more holistic coverage against the risk of income loss.

Sell medical insurance?

People usually buy medical insurance because they believe they could suffer a sickness or injury and they want to make sure their health plan pays a significant portion of the medical bills to the hospital and care providers.

Recommending another product that also pays your client if they become too sick or hurt to work is a natural fit. Medical insurance alone is not a comprehensive health plan. Add DI and your clients will have a more robust coverage. Medical insurance makes sure the doctors and hospitals are paid in the event your client suffers a sickness or an injury. Similarly, DI insurance can make sure your client is paid if they are too sick or hurt to work.

This business isn’t easy, but introducing DI is less difficult if you pair an unknown (DI) with a known (the coverage you may already recommend). By striving to create a more complete income replacement package or health plan, you’ll likely find yourself more willing to sell DI insurance and your clients more willing to buy it.

Life insurance and disability income insurance products issued by The Ohio National Life Insurance Company and Ohio National Life Assurance Corporation. Issuers not licensed to conduct business in New York. Life insurance, disability income insurance, and medical insurance policies have exclusions, limitations, reductions of benefits, and terms under which the policies may be continued in force or discontinued. Contact the issuing company for additional information.

Dana Campion, RHU, is a regional sales director for disability income insurance with Ohio National Financial Services. He can be reached at dana_campion@ohionational.com, www.linkedin.com/in/dana-campion or 206.496.3403. For more information, please see www.ohionational.com.