When you were a student, did you ever have a teacher call on you with a question that you couldn’t answer? It was embarrassing then, but it wasn’t half as bad as when a prospect asks you a basic question about disability insurance and you can’t answer it.
Sometimes you might have to research a tricky topic and get back to a prospect. There’s nothing wrong with that. But if you fumble over a lot of questions, the prospect might lose confidence in you – and you might lose the sale.
Disability insurance can be complicated. As with any type of insurance, there are tricky policy terms and definitions that can make a big impact on the benefits your clients receive. You need to know what every clause means and whether it benefits your client.
DI Isn’t a Subject You Want to Fail
If you’re not doing well in a class, you might be tempted to drop it – but disability insurance is not a subject you want to fail. Here’s why:
- Many Americans are living paycheck-to-paycheck with very little set aside for a rainy day. They depend on a steady paycheck to keep a roof over their head. If an illness or injury rendered them unable to work, disability insurance might be their only chance of avoiding financial disaster.
- Your clients count on you for sound financial advice and insurance protection. If you let them go without disability insurance, they might blame you if they ever find themselves in desperate need of coverage. Protect your clients AND your career by offering disability insurance.
- Disability insurance offers a great earning potential. In addition to a typical 50% first year commission, you can earn a residual commission of 5% for the second through tenth year. You don’t need to be a math major to see how that adds up fast!
It’s time for a pop quiz – and no, it’s not multiple choice. Can you answer the following questions about disability insurance?
- What’s the difference between own occupation, any occupation and modified occupation, and how will this impact your client’s benefits?
- What the difference between the waiting period, the benefit period and the elimination period?
- Should a policy be non-cancelable, guaranteed renewable or conditionally renewable, and what’s the difference?