Disability
Disability
Disability
Long Term Care and Disability Insurance
Prospecting for Disability Income Protection: Who is Your Target…
Presented by Michelle Daharsh Are you having the conversation with your prospects about disability income protection? Or are you reluctant to bring up the conversation for fear that you may not know the answer. With so many types of clients, of all ages and different incomes and occupations, who do you prospect for first? The easy answer just might be: young couples. Start the conversation about disability income with young couples who have recently bought a home or are starting a family. These life events are the best time for them to begin to build a foundation of financial protection with disability income being a cornerstone of their coverage. So how do you talk to them about need? Individuals in this age group have a lifetime of earning potential remaining and probably haven’t looked at the big picture of what that potential is. Income is their most important asset because their lifestyle and long-term plans depend on it. If faced with an illness or injury that keeps them from working and earning an income it can quickly impact other assets and take years to rebuild. Communicate to them about the value of their ability to earn an income and explain what’s at risk. Most young couples think disability is about getting hurt, not sickness. Explain what’s at risk should they lose their wage earning ability because of an illness or injury. Disability rates are based on occupational risk, their age and current health. Prospects in their 20s and 30s typically are easier to get through underwriting because at this age they are generally in good health with fewer past health issues. There are many flexible ways to create and design full coverage for your client when using disability income products, but they won’t know about their options unless you are willing to start the conversation today!
Disability
DI Made Easier
Presented by Tim Dreher Are you like me when it comes to selling Income Protection? I love to get out there and meet new people and give them peace of mind by helping them to protect their greatest asset – their ability to earn a paycheck. But after the client says “yes”, I dread all of the paperwork that comes with the sale. Is it just me or have applications become as big as phone books recently? Well, fear not fellow agents. Thanks to several of our DI carriers, we now have a solution to those long, long applications with a streamlined application process called a tele-app. The tele-app is a shortened version of the regular application with Section B (medical questions, prescriptions, and health history) of the application missing. The agent completes only parts A and C of the application, which consists of basic demographic information and the signature page. Once the application is submitted to the carrier, the client receives a simple and brief (normally 15-20 minutes) fact finding phone call by a highly trained and experienced telephone interviewer well versed in underwriting and medical terminology. If something comes up in the client’s health history during the call that raises a red flag, the experienced interviewer is able to ask the right follow-up questions for clarification, helping to reduce the need for attending physician’s statements, medical records and paramedical exams. This has been shown to cut the underwriting process by as much as thirty-three percent. Quicker issue time means you get paid faster. Finally, another great benefit of the tele-app is to avoid having to ask your client about their personal and private health history, which in many situations, can be a little awkward and uncomfortable for both of you. In a nutshell, the tele-app simplifies the sales process for both the agent and the client, resulting in a quicker issue time. Be sure to give the tele-app a try with your next client. You’ll be glad you did.
Long Term Care and Disability Insurance
“Thanks, but no thanks. I already have DI through…
Presented by Tim Dreher I’m sure that most of you who market Disability Income Protection have heard this before, perhaps even many times. Personally, I actually like it when I hear that response from potential clients. Either it tells me that they were savvy enough to recognize the need for Income Protection and did something about it, or it was provided to them by their employer as a “one size fits all” benefit that may not fit their individual needs. Either way, I have an opportunity to expand on the DI discussion. Let’s take a moment to look at some of the reasons that an employer provided plan may not be all it’s cracked up to be. With an employer sponsored plan you normally have to take whatever plan design and benefits the employer offers regardless of whether the employee is paying for a portion of or even the entire premium. In my experience, most of these plans can have very limited monthly benefit amounts, limited or no riders (such as residual or partial disability benefits) and limited benefit periods (generally 2-3 years in length), even though many disabilities can last longer than 5 years, and in some instances, even for a lifetime. Employers, unfortunately, have to choose plans that fit the masses. As an example, what might be a good fit for a dental hygienist is probably not the best plan for a dentist. Another point to consider is that those individuals that are in occupations that rely on commissions or bonuses for a large part of their income might also come up short as most employer provided plans use only the individual’s base salary when calculating any benefit payouts. This can leave those employees woefully underinsured. Portability is another reason that an employer sponsored plan might not be the best fit. An employer sponsored plan typically ends when the job ends, whereas an individual plan follows that employee to their next job or even to self-employment. The risk remains the same so why shouldn’t the insurance plan remain the same also? Finally, in my opinion, perhaps the biggest reason to consider an individual plan is how employer sponsored plans are taxed versus an individual plan. If an employer is providing the disability plan and paying the premiums then any benefits received from the plan would more than likely be taxable. This also holds true if the employee is paying the premiums out of their own pocket but on a pre-tax basis, then again any benefits received would likely be taxable. This could possibly mean a 20-40% reduction in any benefits received after the benefits are taxed. An employee thinking they are adequately insured could potentially find out the hard way (at the time of claim) that they are only getting a portion of what they thought they would receive. The bottom line is that most employer provided plans can, and do, provide some benefits, which is better than no benefits at all. However, an individual DI plan is very flexible and can be tailored to provide additional coverage and fill in those gaps that an employer’s plan might be missing.
Long Term Care and Disability Insurance
4 Common Mistakes Your Clients May Be Making When…
Presented by Michelle Daharsh When having a conversation about disability income protection with your clients, you will probably come across some common reasons stated as to why they don’t need it or want it. Most times when your client is asked about “disability insurance” they think it’s about getting hurt or injured. A better way to get their attention is asking them how long they could go without a paycheck. Below are four common reasons that your clients aren’t buying “paycheck protection” insurance – or Disability Income Insurance:- It won’t happen to me because I plan to stay healthy. We all think and hope this. However, one in four 20 year olds will become disabled by the time they are age 67. (Social Security Administration, Fact Sheet, February 2013). How many of your clients will possibly fall into this statistic? In fact, illnesses account for approximately 90% of disability insurance claims…not accidents.
- Social Security will take care of me, right? It may, but will your clients qualify for benefits? How long will it take to get approved and how much will they receive? About 45% of individuals that apply for Social Security disability benefits are initially denied, and those who are approved receive an average of $1100 a month. Plus, it’s a process that can potentially take up to two years for approval before benefits begin. How long can your client wait for a paycheck and would this average benefit be enough?
- I have coverage through my Employer. Many times through employer plans, the benefits are taxed, policies are not portable, and they have maximum limits on benefits offered. This is a great opportunity where you can provide education on their actual benefits and truly uncover the additional income protection that you could provide them with an individual policy.
- I can rely on my savings. They probably can for a limited time, but have your clients really looked at their day-to-day living expenses and priorities and figured out how long their savings would last? About half of working Americans report that they couldn’t make it 30 days without a paycheck. Do your clients fit in this category? Can they make it a month, three months, a year – and if they have savings, is it really enough to cover them for an extended period of time.