The DI and LTCI Blog - Your Source for Sales Tips and Advice

Stay out of the Disability Insurance Doghouse.

Posted by Jake Rose on Mon, Jul 31, 2017 @ 16:07 PM

Remind clients why “the good life” is possible.  It’s quite possible that some of your clients are very wealthy, and they have fancy things they’d like to protect.  They might own big homes, vintage boats, fast cars, or even a $200,000 doghouse.

disability-insurance

That’s not a typo: a company called Hecate Verona now offers doghouses, complete with air conditioners, televisions, and oak flooring starting at $40,000, up to $200,000 for a single canine abode.  Obviously, anyone who spends that much for a doghouse appreciates nice things, and they will be very particular about the lifestyle they’ve worked so hard to earn.

While your clients are enjoying the good life, don’t let them lose track of their most important asset: their paycheck.  Their paycheck is the reason they can afford the boat, the car, the house, or in this case, the doghouse.  If that isn’t a strong enough argument, then they can also consider the fact that the daily protection cost of their paycheck can cost LESS than insurance on other material items they own, even though the odds of loss with disability is HIGHER than with other assets.

Many clients will not have thought this through. Fortunately, you can help illustrate the importance of IDI  when the client says “no” by showing them the shortcomings of group DI plans, or the likelihood of disability if they say “it can’t happen to me.”

You can check out our Wealth Preservation Plan video, which illustrates the cost of protection compared to other common assets.  Surprisingly, the cost of protection for an income can actually be much less than other large assets.

It’s so important in fact, that it is recommended that agents keep liability waivers on hand for clients who refuse income protection.  It’s important to know how to manage the liabilities and risks associated with clients who refuse to protect their income.

So whether your clients love $8 lattes, $100 lunches, or $200,000 doghouses, be sure to remind them of the most valuable asset in their portfolio: their ability to work and earn an income.

Topics: disability insurance