Where Do You Go When DI Won't Work?

[Cash]

What is your strategy when a prospect can't/or won't take a DI policy? Obviously with the tough underwriting and high premiums it doesn't always work out even if the prospect buys into the concept. In such a situation, is it better to go for a critical illness, accident, hospital indemnity plan, something else?

 

[kheyknee]

Accident plans are often much less expensive, and the underwriting is a breeze. The policies tend to generate lots of small claims, so as you service the client you have the opportunity to keep in touch and cross sell after paid claims.

 

[DHK]

Assurity has the Acci-Flex Accidental death benefit with an optional accident-only DI rider. (Accident-DI rider not available in California.)

That... combined with a simplified issue critical illness plan (which is not coordinated with state disability benefits anyway) would probably make a decent combo-plan.

 

[Norwayguy]

Assurity has the Acci-Flex Accidental death benefit with an optional accident-only DI rider. (Accident-DI rider not available in California.)

That... combined with a simplified issue critical illness plan (which is not coordinated with state disability benefits anyway) would probably make a decent combo-plan.

As I read all your posts DHK and what happened to Neasham. ...California suck

 

[DHK]

Not just Neasham... but Alan Lewis too, but his case was thrown out.

It's primarily why I don't target retirees and seniors. If I target them, others will target me!

 

[Norwayguy]

Not just Neasham... but Alan Lewis too, but his case was thrown out.

It's primarily why I don't target retirees and seniors. If I target them, others will target me!

That and all the riders not available there.

 

[DHK]

True. I have limited DI policies and limited CI living benefit riders... as well as Chronic Illness riders.

This is just one reason why I focus more on the cash value build-up within permanent life insurance - as a way to enhance one's wealth, rather than a policy that pays out in multiple ways at multiple times.

 

[TPetersen]

That is the same sales question for when a prospect does not accept the Life insurance.

Underwriting "toughness" is based upon ones expectations. Underwriting disability insurance takes several steps for individual policies, or few if you are working in the GSI markets. However, if you explain to a client that the process has several steps which collectively will take on average 3 to 6 weeks to accomplish and will require some work on your end, and some work on my end, to get to the final resolution. These steps include getting medical records, taking an exam, providing some financial information and then some time. Most people can take a lot, if they know what is expected up front, not as it goes along.

As to high premiums, I found that many producers see disability premiums as high because they do not look at the aggregate. This is also true of the prospect if presented the same way. As an example:

"Mr./Mrs. Client here is a proposal for your for disability insurance. The annual premium is $4,500 and will provide a $5,000 per month benefit for you should you become disabled." With this "pitch" what the client sees is $4,500 to get $5,000. Would you do that with life insurance?

Here is another approach - Mr. and Mrs. Client you 40 years of age. We have discussed the need for income protection should you become sick or hurt. Here is a proposal for up to $1,500,000 of benefits for you between now and age 65 and it only cost $4,500 per year.

Disability insurance is asset protection just like life insurance.