Advisor Today - July/August 2015 - (Page 27)

PRODUCT SPOTLIGHT DI INSURANCE By Corey Anderson Overcoming the Most Common DI Objections The approaches this producer uses to address his clients' concerns will come in handy as you seek to improve your DI sales. I f you have been selling disability income (DI) insurance for some time, you are probably familiar with the most common reasons your prospects typically give for not buying this vital protection. They are: * The price is too high. * I am too young to suffer from a disability. * I am already protected through my employer's DI plan. Here are a few approaches you can use to successfully address these objections and get your prospects to sign on the dotted line. 1. The price is too high. Paying for DI insurance isn't something most people enjoy doing. I am 36 years old, and I hate paying my premiums; yet, I make my living as a paycheck-protection consultant. Why argue with a prospect if he tells you that the price for DI insurance is too high? Unfortunately, many of us in the protection space are viewed as the hindrance to the client getting the newest flat-screen TV or the newest vehicle with all the latest features. Price seems to worry people when looking at DI, but for the most part, price is the issue when there isn't perceived value. I think that in their presentations, most advisors lead with the illustration too early. You should spend 90 percent of the time on the problem that the prospect has, not on the solution. Do a budget review to see how much the client is currently spending on life. For example, in working with numerous advisors over the years, I have realized that most don't get to the root of a client's financial picture-which is their monthly/ quarterly/annual spending. Having DI insurance only through work is like having half of a health insurance plan. Most people don't realize how much money they are spending on those last-minute drinks or snacks while on the road. I recently reviewed this with a great friend of mine who is also an advisor and we estimated that he was spending over $200 a month when he stopped for a quick drink or snack. $150 a month would purchase more than enough income protection for a 30-something-year-old with an income of $200,000 or less. When doing the review with your prospect, discuss the topic of deductibles, as well. Why are we OK with a $1,000 deductible on our car and home and a $6,000 deductible on our health insurance, but when it comes to DI insurance, it can be $100,000 plus annual deductible (shortfall of their current lack of protection?). If you are going to show the clients the "Cadillac" for paycheck protection, be ready to pivot to the "Chevy" or the "Geo" (more than 95 percent of my clients don't buy the "Cadillac"). I have many clients paying as little as $20 a month for their protection and some as high as $1,500 a month. Price is based on things like what the client wants in the contract, the size of the contract, his health and his gender. 2. I am too young. It will not happen to me. Clients often think that disability happens only to people over 50 or 60. But what if they are wrong? After all, sickness and accident play no favorites. This is what I say to clients who think this way: "You have over a 25 percent chance of missing work for more than 90 consecutive days because you are sick or hurt before you reach age 65. This financial plan I am helping you with won't survive if you are out of work for a year or for years." cont'd on page 28 July/August 2015 | ADVISOR TODAY 27

Table of Contents for the Digital Edition of Advisor Today - July/August 2015

From The Editor
New Products
How Do You Create the Million-Dollar-Plus Practice?
Traits of Top Performers
The Business Benefits of a Pipeline Mentality
What Does It Mean to Act Ethically?
Variable Universal Life is Back
Sell More LTCI By Selling Less!
Overcoming the Most Common DI Objections
Divorce DI
Mitigating Retirement Risks with Life Insurance
Creating Irreplaceable Capital
Closing the Gap
Financial Future Less than Rosy for Boomers and GenX
Estate Planning and Annuities?
Ignite Your Sales Potential
A Closer Look at BTID
Upholding the Tradition
NAIFA’s Candidates for Election
Addicted to Rejection
What is Keeping Your Senior Clients Up At Night?
Advertiser Index
Back Page

Advisor Today - July/August 2015