Every day, we work with producers to help them grow their businesses. This involves finding the right prospect, uncovering financial needs and selling appropriate products. What many producers may not realize is their existing book of business is the best resource for more business – not only for referrals, but also for new sales.
Many producers help clients build a financial foundation with life insurance. Many clients know they need life insurance and gain peace of mind knowing that they’ve taken care of their family in the event of their death. What may not be as apparent is that many of these same clients could be ideal prospects for individual disability income (DI) insurance to provide a “living benefit” for clients and their families. Consider this rule of thumb: If you’re selling clients life insurance for risk protection, they also need individual DI insurance.
A colleague of ours shared a good example of this: He was diligent about helping clients purchase the appropriate amount and type of life insurance, and about creating estate plans. However, he didn’t consider what would happen to all of that planning if the client became too sick or too hurt to work.
One day, the spouse of one of his biggest clients left him a message. Her husband had been diagnosed with a severe illness. The prognosis was not good, and they expected a long and grueling recovery period. Since he wouldn’t be able to work, she wasn’t sure how they’d make ends meet without his regular paycheck. She wanted to know their options, and was sure that our colleague had taken care of them.
Our colleague became very upset. He hadn’t talked to the client about this scenario, and wasn’t sure how to return her phone call and deliver the news. He had helped this valued client with several elements of his financial plan, but had never considered income protection. Before he could return her call, the spouse called again to say her husband had died.
You might be thinking, “They didn’t need an individual DI insurance policy in this situation, after all.” You’d be right – but, what if? What if the producer had to return the call and admit there was a gap in the financial plan they developed together? What if everything they had planned for – retirement, college for their children – was now in jeopardy?