Insurance agents struggle to sell disability insurance (DI) to their clients because it can be a complicated product to explain. With so many options available, it’s easy to create a situation of analysis paralysis. Your clients, after listening to your presentation and going through the hundreds of variables, end up wanting to “think about it”. They certainly see the benefits of having DI, but now that you filled their heads full of numbers, industry jargon, restrictions, and exceptions, they are too confused to make a decision.
The following three strategies dramatically improved my closing rate:
1. Analogy: Job A or Job B
I often offered my clients the hypothetical choice of two simple options: Job A or Job B. You can change the numbers to better reflect your client’s personal scenario, but the strategy is easy to explain and easy to understand.
Given the choice between Job A and Job B, which would you choose? Job A pays $50,000 per year while you are healthy but the minute you are no longer able to work, the income stops on a dime. Actually, you won’t even get the dime, your income is immediately reduced to zero.
Job B pays slightly less; $49,340—but if you are no longer able to work, Job B pays $30,000 tax-free which almost fully replaces your entire gross income.
Given these two scenarios, your clients will—at the very least—have the conversation around DI. They’ll understand the need for DI and many will purchase it to protect themselves and their families.
2. Bullet List: Benefits
Some of your clients will most appreciate a simple list explaining the why of DI. This high-level overview of benefits worked well for me:
- receive tax-free income, which can prevent the need to sell off assets or even bankruptcy
- unlike life insurance, benefits may be claimed while still alive
- DI will not affect eligibility for any government benefits
- DI can fund therapy and medication
- it’s a small price for peace of mind
Bonus: when explaining the one- to three-month waiting period before benefits pay out, I compare this to the rule of thumb of having 3 months’ worth of expenses saved up.
3. Analogy: Money Machine
I also use this analogy with clients:
Imagine you have a machine that creates money. Imagine that machine pays for everything you need and want in life. Bills, vacations, investments, your car, your home, etc. Now imagine that machine stops working and your income drops to zero. Would it make sense to insure that machine? Of course it would. That machine is YOU. You and your ability to earn an income is your greatest asset, so it only makes sense to insure it.
By putting DI into simple terms, your client is less likely to want to “think about it” and more likely to make a decision.
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