Updated: Oct 29, 2019
This year, Broker World Magazine asked a panel of disability insurance experts questions about the DI market and what can be done to increase agent involvement in disability insurance protection solutions.
Among a panel of super informational experts was our very own Jack B. Schmitz, a veteran in the field. While the full article (published in the September 2019 issue of Broker World) reaches a length of seven whole pages of knowledge, our teammate Jack was notoriously brief and to-the-point with his answers.
Q: What are your assessments of the individual, group, business, and excess disability markets today?
A: Underpenetrated due to lack of communication, marketing, and incentive.
Q: What are some tips for agents to overcome objections to buying income replacement protection?
A: Ask questions. What is your backup plan for partially surviving an accident or illness that would've killed you 20 years ago, but with modern medical technology, you can now survive with a disability? Listen. Most people that do not have DI were never asked.
Q: Many agents deal with high net worth individuals -- what advice can you offer to increase sales in the individual and high-income markets?
A: High earners are the market in CA. Focus on business owners and those who earn over $80,000. In CA, SDI pays up to $5,425 per month. It can be difficult to motivate lower earners when they have this government benefit. Fortunately, there are plenty of high earners out there. When they are married and have children they are the most motivated to protect their earned income, which provides for their family and maintains their lifestyle.
Q: What tips can you offer to ease entry into the business DI market?
A: If you are already a financial, insurance, or benefits advisor, it is imperative to inform your clients about the existence of products that can help them manage the risk to their portfolios which may include business assets. Contact a DI BGA or DI specialist and have them provide you with training on the business products. Start with Business Overhead Expense (BOE) to keep the business running, Disability Buy/Sell to buy out your disabled business partner, Loan Indemnification to pay the bank, and Key Person to pay the business when it loses a key person due to a disability.
Read the whole article here.