Pricing can be one of the biggest obstacles to overcome when selling disability insurance, especially if you are talking to your client about purchasing multiple types of insurance. The good news is that there are a whole lot of discounts out there and ways to make quality disability insurance contracts more affordable!
Here’s an example of how making slight changes to plan design and adding discounts can make DI coverage very affordable!
Your client is a 40 year old accountant who owns 50% of her business. She is interested in disability insurance coverage but the monthly premium of $211.02 for a plan presented to her with $4,000/mo. of benefit, a 90-day wait, age 67 benefit duration with riders for non-cancelable, residual/partial, own occupation, and COLA is just too expensive. Have you lost this sale? Let’s see what changes we can make so this coverage is more affordable.
- The first place I would start is with the plan design. It’s great to have non-can coverage, true own occupation protection, COLA and an age 67 benefit duration but I would consider those options as “nice to have,” not “have to have.” If we change to a guaranteed renewable product, and remove COLA we are down to $148.86/mo. If we change the benefit duration to 10 yrs. (the average duration of a disability for a 40 year old healthy female is 7.083 years according to WhatsmyPDQ.com.) the monthly premium is now $121.66. But we’re not done yet!
- The client has been a business owner for several years and the business has been successful. Great news- this client qualifies for the business owner discount! The premium is now down to $103.41/mo.
- Your client talks to her business partner and he agrees to purchase coverage as well which kicks in a two-person multi-life discount. The premium is now down to $91.25/mo.
- After finalizing their plans for their individual disability insurance coverage, the partners realize that DI protection for their business is really important as well. Besides taking advantage of one application and underwriting process, with her application for Business Overhead coverage, your client can also get the multi-product discount bringing her monthly premium to a much more affordable $85.16/mo.
With a few plan design changes and all of the available discounts, she can save a total of $1510.32 off of her total paid premium over a year!
Of course we would all like to sell our clients the best policy available with the most comprehensive coverage. But something is always better than nothing, particularly if your client becomes disabled and has no income. We can work with all different types of clients and budgets and are happy to tailor a plan design to fit a monthly premium your client feels comfortable with. Overcome the pricing objections and get your clients’ the income protection they need!
Looking for more great cost-savings tips? Download our Non-Can Nonsense Sales Strategy Quick Tip.