Open any personal financial planning book or brochure and you will find “Disability Insurance” prominently displayed as an essential policy to have, especially for young wage earners who depend entirely on income for support of lifestyle and his/her dependants.
In the American College coursework for both CLU and CFP, the textbook ”Fundamentals of Insurance for Financial Planning”, Disability Income Insurance occupies an entire chapter of some 40+ pages.
Syndicated columnist, Terry Savage, in one of her recent “The Savage Truth” articles, refers to pay-check insurance as “… one of the most overlooked products in the insurance industry”. She goes on say, “… how about this fact: Between the ages of 25 and 65, you’re four times more likely to be disabled than to die.” *
If you are licensed to sell health insurance, it’s an easy pivot to asking your younger clients – especially small business owners – “what would you do if you weren’t able to work for an extended recovery period due to an accident or serious illness?” or some variation of that question. Then, just listen.
Actively listen. Repeat back to them what they just said: “So, what I heard you say is that you’d shoot yourself and let your brother run the business?” and be dead serious (pun intended). Allow the silence to hang in the air, if need be. Then, let them tell you their real plan, which will define the problem that they don’t want to discuss but realize it needs to be.
So, you don’t know anything about DI? Not to worry. Just tell your client that you work with a team of specialists and one of them works with you on solving the risk of losing the ability to earn an income due to disability. Then, call Designs In Life.
Click on the link at the bottom of this page to open a questionnaire that asks vital questions covering the three areas of underwriting for DI: Health, Occupation, and Financial. Download it and save it to your desktop or some appropriate folder on your hard drive for use in the future. Gather the information, and either scan and send to me in an email or fax to the number on the bottom right of the form.
Watch for continuing articles this month on DI problem definition and affordable solutions. Make this the month that you become someone’s hero if they are taken out by a serious accident, prolonged illness, or the development of a serious chronic health condition.
*© 2012 Sun-Times Media, LLC.