Why Cross Sell DI with Life or Annuity Sales?
With the chances of becoming disabled being far greater than dying at almost any age, it should be a no-brainer to approach your clients about income insurance.
Research sources indicate that:
- During the course of one’s career, you are three and a half times more likely to be injured and need disability coverage than you are to die and need life insurance.
- In fact, at no age is the risk of death greater than the risk of becoming disabled.
- Nearly 50% of all individuals 35 or younger will be disabled for 90 days or longer prior to age 65, and about 1 in 7 can expect to become disabled for 5 years or more.
At the same time, there no reason to downplay the need for life coverage. Historical information indicates that the life span of those who have experienced a disability are generally shorter.
Thus, having both DI and life coverage is the smartest combination. You insure your car and your home - why not your paycheck?
Plus liquidating long term savings in tax deferred annuities to use for income if disabled is not a sound plan.
How do you start the cross-sell conversation? With a few easy comments and questions:
- Remind your client of the above statistics, and ask how they feel about them relative to themselves.
- How long could you go without a paycheck or income from your work before having difficulty paying bills?
- How much savings or annuities have you have set aside for income replacement if you become disabled?
- How long would your savings or annuities last if you had to access them due to a disability?
- If your income stopped how much could you depend on your RFC (Relatives, Friends and Charity) for help?
- What is the most important asset you have to protect? The answer should be their income.
- With knowledge of your client’s recreational activities, discuss examples of how such activities can cause an injury.
- Share any stories you may have or heard regarding how disability “Income coverage “ saved or protected individual or family finances.
For more daily usable ideas on how to bridge the gap between life and annuities and “Income Insurance” for your prospects and client, email or call David Bennis at Cenco (916) 920-5251 Ext 132.
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