Ignite Your DI Sales!

Looking for ways to expand your DI practice? Then, start reading this article right now — you may find some great ideas to spark your next sale.

By Ari Fischman, CFP, LUTCF

Persuading your clients and prospects to buy the disability income (DI) insurance they need is sometimes an uphill task — there is always something else that demands their time and money, and before long, the decision to buy is placed on the back burner.

But your clients and prospects do need DI insurance and it is up to you to convince them that now is the time to take action. To get you started on this important journey, we asked top producer Ari Fischman for some ideas to boost DI sales, and this is what he shared with us:

Use examples to empower clients. An unexpected life event could drive someone into a rut they can never get out of if they are not properly protected with policies like life, health, home or disability income insurance.

A foundation of affordable protection that can be further built upon is a critically important step in financial planning and should come before asset accumulation. Unfortunately, a key protection product like DI insurance is completely neglected by full-time workers nearly 40% of the time, according to Guardian’s research brief “The Role of Disability Insurance in Financial Wellness.”

Clients would likely be surprised to know that I’ve written more than eight times as many life insurance policies as I have disability policies in my career, but more clients have filed disability claims. Sharing tangible examples about the importance of protections like DI insurance helps clients recognize that many people who seem to be doing well health- and career-wise could be collecting disability benefits.

For instance, we leveraged DI insurance for a physician suffering from anxiety due to a hostile work environment, and a lawyer working at lessened capacity due to multiple back surgeries. Witnessing the impact on the families of the clients we protect is a rewarding experience that motivates me to provide the same level of security to more consumers. Through real-life examples, clients learn that many claims are temporary to allow the insured to process their current traumas without experiencing a financial loss.

Targeting certain professions like physician residents or law firms and prospecting within a cohesive group can keep advisors’ sales pipelines flourishing.

Make use of an income-protection model. Driving home the importance of DI insurance by using an income protection model is another impactful method to use. Let’s take a 30-year-old accountant making $100,000 per year. If they work 30 years without any pay increase, their future earnings would be $3 million. If they had a DI insurance policy over that same period of time, they would have paid $120,000 in premiums if they never became disabled.

If they do suffer a disability, then that $120,000 would protect over $3 million of potential earnings. This accountant would be using about one year of earnings throughout their entire career to protect all of their income. Given that today’s 20-year-olds have a one-in-four chance of becoming disabled before retirement, according to the Social Security department, this perspective is valuable for clients to understand and makes protecting their income an easy decision.

While DI insurance is a basic foundational-planning component that is often neglected, many clients will be able to see the logic and necessity of protection with quantifiable or narrative examples.

Debunk common DI myths. DI insurance can be challenging to effectively present to clients due to the abundance of myths and misinformation that exist about it. While this fosters a lack of understanding of DI insurance and can make clients less receptive to purchasing a policy, it leads to a staggering opportunity for advisors to bridge the gap and grow their business.

Working to dispel financial myths that clients may have helps maintain open communication and sets the stage for advisors to present tailored solutions. Consumers often think DI insurance only protects them in situations of catastrophic, permanent harm that causes total disability. In reality, 90% of claims are from common illnesses such as musculoskeletal disorders, cancer, pregnancy and mental health conditions, reports the Council for Disability Awareness. Many policyholders can even make partial disability claims when they are still working in their occupation but are not as productive because of an ailment, illness or mental health problem.

The “Not-Me Mindset” is another myth that plagues consumers. Guardian reports over 40% of workers think there is less than a 1% chance they will become disabled from work. In reality one out of four of these people would greatly benefit from proper coverage. Many people think it will never happen to them until it’s too late to prepare and protect their income, but three in 10 households have experienced a disability leave in the past 10 years.

Clients may use the “I have coverage through work” reasoning when discussing disability with their advisor. While 50% of U.S. employers offer disability benefits, employees may not realize that their coverage is often inadequate particularly as their earnings increase. Employer-sponsored plans often have a cap and do not cover total compensation with bonuses and commissions. By dispelling this myth, clients can recognize the necessity of additional coverage to prevent an income gap in case of a disability.

Driving home the importance of DI insurance by using an incomeprotection model is another impactful method to use.

Explore new marketplaces. If advisors have efficiently communicated the importance of DI insurance to their current clients in the individual marketplace, they can look to other sources to increase protection planning opportunities.

For instance, an advisor could pursue a multi-life discount for individuals from one employer, or enter the group marketplace to institute disability benefits and drive value for employers. Targeting certain professions like physician residents or law firms and prospecting within a cohesive group can keep advisors’ sales pipelines flourishing.

Through advisors’ dedicated efforts within multiple marketplaces, more consumers will be able to protect their income and prepare for the unexpected.

Ari Fischman, CFP, LUTCF, brings close to 20 years of experience in providing insurance, estate planning and financial solutions to successful business owners and executives. He is an 11-year member of MDRT, with four Top of the Table recognitions. He founded Fischman Insurance Group to help provide his clients with strategies for business succession, retirement and estate planning.