As you know, no two clients are the same. They have unique financial situations, diverse needs and different occupations.
Luckily, one of our strategic carriers offers a comprehensive DI portfolio that offers a fit for every one of your client’s individual needs.
This product portfolio includes Accident Only, Short-Term Disability (accident/sickness), Long-Term Disability (accident/sickness) and Business Operating Expense.
In addition, there are numerous optional riders you can add to tailor an income protection plan to meet the needs of your clients.
Additional riders include:
- Critical Illness Benefit
- Hospital Confinement Benefit
- Return of Premium Rider
- Extended Own Occupation
- Future Insurability Option
- Extended Proportionate Disability Benefits
For more information about developing a plan tailored to your client’s needs, contact your Disability Income Insurance Specialist today.
You know statistics alone don’t sell Disability Income Insurance. No matter how many scary statistics you quote, some customers can’t fathom why they may need DI. That’s when having some real life examples your customers can relate to can turn the sale around.
People love stories. Children beg to hear them. A campfire wouldn’t be the same without them.
A well-crafted story can evoke an emotional response and paint a picture that leaves a lasting impression. And that’s what makes stories such powerful sales tools.
Stories are a good way to get people to accept what you are selling. Telling the right story in the right way can be a powerful form of persuasion. Making your point with a compelling story can sway opinions and preconceived notions much more effectively than a simple statement.
Why? Because stories appeal to peoples’ emotions and are more memorable. Stories provide context.
A Different Approach
But it’s not your only your stories that can work for you. Your clients may not even realize it but they probably have stories of someone they know who’s been affected by having (or not having) DI. Listen carefully for indicators that there’s something in their heads and try to draw it out.
In the end, a story your clients can relate to has the potential to make a powerful statement with very little selling on your part.
Click here to visit the LIFE Foundation’s website to read real life stories that can help with your sales.
With the economy the way it is, most would agree that saving for retirement in these trying economic times can be challenging to say the least.
According to a CNBC study, 36% of American’s making over $100,000 a year, said they aren’t contributing a dime to retirement savings such as a 401k or IRA account.
Now imagine trying to save for retirement if you are too sick or hurt to go to work and earn an income. It quickly becomes next to impossible.
We have a carrier that offers a solution to help protect your client’s ultimate retirement goal – called DI Retirement Security.
DI Retirement Security allows your client to continue saving for retirement even if a disabling event should unexpectedly arise, by making a retirement contribution of up to 15% of their income or a maximum of $4,125 every month for the length of any long-term or total disability event.
Here are some sales approach tips:
- Sell Individual DI Insurance and DI Retirement Security together
- Approach clients who are at their maximum issue limits for Individual DI
- Approach clients who are contributing the maximum to their 401(k)
- Talk with business owners about providing DI Retirement Security as an employee benefit for executives and key employees
To find out more about how you can couple Individual DI Insurance with DI Retirement Security to help your client reach their ultimate goal of retirement, please contact your dedicated DI Associate today.
Modern day Disability insurers are forever fearful of accidentally over-insuring their clients. This is particularly true when dealing with highly compensated clients.
In the past, the income replacement percentage was often subjectively determined by a particular carrier’s underwriter.
As of late, the Council for Disability Awareness has tried to modernize the approach by implementing a statistical analysis approach that determined the need to replace at least 65% of income.
Traditional carriers often meet and sometimes surpass the need for low to middle income earners, but fall short with incomes greater than $150,000
Whether your client is generating a modest income or is highly compensated, there is an essential need to provide adequate income protection to help sustain an individual or family’s lifestyle during periods of non-productivity or severely diminished cash flow due to a short or long-term disability.
By stacking additional income protection on top of the coverage the traditional carriers provide, the client’s ability to maintain their current lifestyle turns from fiction to reality.
Contact your dedicated DI Specialist today to learn more about how you can offer your clients a complete income protection plan.
Do you have clients who’ve maxed out their Disability Insurance coverage and could possibly be leaving their retirement unfunded if they got sick or hurt?
Try DI Retirement Security (DIRS). It provides coverage for individuals to help them continue to make retirement contributions if they become unable to work due to disability.
Since retirement contributions are not necessary to qualify for this coverage, any individual in a qualifying occupation (class A through 5A Select) earning at least $76,000 per year can apply for DIRS.
Coverage also does not diminish eligibility for regular individual Disability Income (DI) Insurance. This means an individual can qualify for DIRS even if he or she already has a regular individual DI policy up to the maximum issue and participation limits.
How DIRS Works
- If the insured is disabled beyond the elimination period, benefit payments are made to an irrevocable trust. These proceeds are not accessible until age 65 or 67 (depending on the Benefit Period selected).
- The insured directs the investment of the funds to fit his or her investment style and risk tolerance, using a number of investment options within the trust. There is a $50 per month trust administration fee.
- The trust is activated only after the insured meets the elimination period requirement and benefits begin. Trust earnings are taxable each year to claimants/ insureds, unless they selected a non-taxable investment instrument.
- Claim benefits paid to the trust are non-taxable if the insured pays the DIRS premium. Benefits are taxable if an employer pays the premium and the premium is not considered income to the employee.
- At the end of the Benefit Period, trust assets are distributed to the insured per the terms of the trust agreement.
- Coverage provides a maximum benefit up to 15% of earned income, with a minimum benefit requirement of $1,000 per month. For 2011, the maximum benefit is $4,125 per month ($5,325 per month if the benefit is taxable).
- Available elimination periods are 180 or 365 days.
- Benefit periods are To Age 65 or 67, with “Your Occupation” periods of two years, five years, Age 65 or Age 67.
- Optional riders include: Future Benefit Increase, Cost-of-Living Adjustment and Mental/Nervous Substance Abuse Disorder Limitation.
If DIRS is written as a stand-alone policy with no other DI coverage applied for or in force, then simplified underwriting guidelines are used. If the client applies for other DI coverage along with the DIRS application, full underwriting applies. Employer groups that qualify for a multi-life discount also receive the discount on DIRS policies.
For more information contact your Disability Income Insurance Specialist today.