Use Riders To Present DI Scenarios To Prospective Clients
Often, the key to gaining a prospects agreement on the need to protect income with disability income insurance is to present scenarios that seem realistic to your prospect.
This article explains how to do that by using several DI riders to illuminate the discussion–and make the need for coverage believable.
Chances are, when your prospect thinks of the word “disability,” he or she thinks “wheelchair.” Since the person cannot envision being disabled that way, he or she may not want to buy DI insurance.
The solution? Start educating your prospect about the various types of disabilities. (See chart.) Ask your prospect which type he or she thinks of when you say “disabled.” Probably, the answer will be “No. 4.” Then, tell your prospect that many disabilities fall into one of the other three categories.
The fact is, most people dont think of partial claims as being disabling; yet more people can identify with these types of disabilities because they know someone who has suffered one of them.
When you ask if your prospect has a relative or friend who has suffered a heart attack or has had cancer or a bad back, chances are the answer is “yes.” So, point out how the residual rider, attached to a quality DI contract, can provide needed income during one of these periods of disability.
Heres another example using the residual rider. Anyone whose income is derived on a fee-for-service basis–attorneys, doctors, dentists, many commissioned salespeople–derive income from an established clientele that may have taken years to develop.
Consider an attorney having a key client who generates a substantial amount of revenue for the law firm. Suppose that attorney is disabled by an accident for nine months, during which time the client obtains new legal counsel.
When the attorney recovers and returns to work, performing all duties for as many hours as before, the loss of that key account hurts. The attorney is now earning substantially less than before the accident, and it may take weeks, months or years to replace that large account.
This points out why anyone who works on a fee-for-service basis should have a recovery benefit built into the residual rider of his/her DI contract.