Ever presented disability income insurance to a client, and found that with one look at the pricetag they are reluctant to purchase? While it is true that a DI plan could be costly for some – it certainly doesn’t have to be.
Avoid the “sticker shock” with your clients:
The general rule for the amount a client should spend on their Income Protection plan is 3% or less of their annual income.
If the premium is higher than the 3% amount, the client is more likely to experience “sticker shock” – and, even if you are able to place the policy, the likelihood of it lasping is much higher. The client will then have no protection and you will not have a renewal commission.
How to keep premiums under 3% of a client’s income:
A Fun Fact to share with your “sticker shocked” clients:
Over 80% of disability income claims are settled within 5 years because the client recovered and returned to work, or they passed away. In lieu of a less than 20% chance your claim will go past 5 years, a 5-year benefit can be very affordable.*
Not every client needs all the available costly riders the carrier offers – choose only the riders that will actually benefit a client. And if in doubt of which rider(s) would be the most suitable? – contact your DI Specialist to discuss the best options. We are here to help!
* Council for Disability Awareness
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