Insurance Agent Forum

[The DI Doctor]

The value of insurance is peace of mind. When the unexpected occurs, people want to be sure that they and their families and businesses survive the unexpected in a financial way. Life insurance helps with bills and burial costs, auto insurance helps with collision and injury, but what protects the means to pay for all of this and more? Disability insurance financially protects against losing the ability to earn due to sickness or injury. Yet due to fear of the current economic crisis, many people and businesses are more concerned with cutting costs. So what is our response to fear? Peace of mind.

One of the things I hate the most about fear is that it can cause people to make hasty decisions. Joe the doctor or businessman may think about saving $200 per month today by dropping his disability coverage. Yet if he bought that 10 years ago, how much will it cost him to replace the same coverage later when things are better? When a company decides to cut disability coverage, the consequences can range from lower employee morale to potential liability with salary continuation plans. I do not think that most clients, and some agents, realize that there are other options out there. This is confirmed in my mind every time an agent is surprised when I cut approximately 50% of premium without changing carrier, benefit amount, benefit period, or elimination period. They are surprised every time I do it. When they see how I did it, they have peace of mind that they can sell the client.

I would rather see a client receive great protection instead of good protection. I would rather see a client have good protection instead of no protection. When I think a strategy through, I seldom picture an insurance agent and a business man. I picture children, a roof over their heads, and their mother serving dinner with a warm smile. What can I do to help this agent help them? A disability in the current economy will only be more painful that it was 5 years ago. Disability insurance can be crafted to fit many budgets as an essential component of financial planning. Besides, how many other bills that your clients are paying now can be guaranteed never to go up until they retire? Disability Insurance. That is peace of mind. If you have any questions or would like to see quotes, please contact me at the address below.

[VolAgent]

Please do share how you are able to reduce the premium so much without reducing benefit.

[The DI Doctor]

That is simply achieved by matching the right contractual and definition structure to match the particular client's needs. You would not need the same level of protection for a 27 year old dentist as a 57 year old executive. But not all product structures allow you to offer both options to the same client that he or she can make a wise decision with your guidance. I would love to show you by quoting one of your clients as an example. Let me know.

[M*R]

Aside from trying to work magic. It is important to look at outside ways of reducing premiums for your clients. Many times there may be 10-15% savings if the client belongs to a specific association. 10% of a $3,000 premium is worth considering for most people. For example: one company I work with offers 10% discounts to members of a specific association. The cost of joining is low enough that it makes sense to join and take advantage of the discount.

Additionally, too many agents seem to forget about multi-life programs that are available. Specifically when working with females, the concept of unisex rates and a 5-10% multi-life discount can be very attractive. Most female rates can be reduced close to 40-45% by doing this.

In many cases, a single female could obtain coverage for herself, and buy a skimpy policy(base benefit and 2-yr ben per with a 720-day elim) for a second person in order to qualify for multi-life, and still save money on their own premiums.

Clearly it doesn't pay us as much, but your client will appreciate your efforts much more and will be more likely to refer other professionals to you.