We often hear advisors mention they don’t offer Individual DI policies because their client base already has protection through an employer plan. While many advisors may choose to move on to another aspect of the client’s financial picture, it’s the experienced advisor that sees the true opportunity.
We’ve always found it easiest to present to clients who already own a DI policy. If the client is covered by a plan at work, they already know the importance of having a plan designed to protect their paycheck.
They recognize the value of the added benefit provided by their employer, but typically aren’t aware of the short comings of a group plan such as direct-integration, taxable benefits, and lack of portability. However, the existing employer plan serves as an excellent starting point to introduce the subject of proper income protection.
For those clients with existing coverage, commend them for having an existing plan in place. Then offer to review the plan to determine if it’s providing the necessary coverage it’s designed to provide by asking for a declaration page of their existing policy. With the policy declaration page and some basic client information, we can conduct a complete policy review showing the client’s current protection along with any recommended changes.
EXAMPLE:
Client: Male, 40 Occupation: Executive Income: 100k with 25k in bonus Current Coverage: 60% of Salary with a 10k Cap
Current Coverage:
$5,000 per month (taxable)
Additional Coverage Available:
$3,300 per month (non-taxable)
If you want to target an Easy DI Sale — the DI review is the easiest way to immediately increase your Disability sales – work with your existing book of business to provide proper income protection.
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