The "I Am Going To Make More" Delay

Bob_The_Insurance_Guy

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Decatur, Ga.
Sat down with a prospect, and talked DI. He is interested, but told me he wants to wait another year, because his 2013 income is substantially larger than 2011-2012.

What would be a good response?

What he is afraid of is basing the coverage on 2011 and 2012 income is not a true reflection, come 2013 forward.
 
So tell him you can take out the policy now and add additional coverage next year. Doing it his way leaves him uncovered in the event of a disability doing it your way costs him nothing above what he would pay next year anyways.

Are you sure this is the true objection?
 
FIO? Care to spell it out? Thanks

Future Insurability Option. The ability to buy more DI coverage at a future date without medical underwriting, only financial. There are some terms you have to follow, generally regarding when the option is and what happens if you pass on it.
 
Tell him it will most likely come out cheaper if he adds the extra coverage later and locks in the current coverage at his current age & health now.

You can add a rider to allow him to increase coverage as long as he can prove the income. There is no reason not to do it now and risk a health condition or accident in between and not be able to qualify for it later.
 
What if he's uninsurable next year? He could be in a car accident and screw up his back, get hit by a low flying blimp, any number of things. The purpose is to protect CURRENT income, not what he might make next year.

Go with the suggestions of the max based on current income and load him up with an FIO. I hate when people try to get clever like this. Good luck.
 
"Are going without car iinsurance or homeowners insurance because you are going to buy a better one when you are making more money? Of course not. You insure what you have because you would suffer a financial loss if something happened to them. In the same way, you need to insure the income you have now, not wait to insure you might have in the future because loosing it would be a far greater loss than losing your car or your house"
 
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