“Specialization for the Life and Health Agent = Success!” Technical Training Series
As the saying goes, “if you look like all the other dogs, you are just one of the pack.” A successful insurance producer finds ways to stand out from the “pack” by bringing unique services to the client. In a recent post, we outlined how a successful property and casualty agent can set himself or herself apart by becoming an expert in business interruption and business income insurance. In this edition, we are going to focus on how a life insurance producer can similarly succeed with a particular product in the life insurance field—the disability income insurance. What are the odds that a person will be disabled?Pretty high…
- A 35-year-old male is 32% more likely to have a disability lasting at least 90 days vs. the probability of death.
- A 35-year-old female is a staggering 135% more likelyto have a disability lasting at least 90 days vs. the probability of death.
- Your occupation or own occupation: This is the most liberal definition. If you can’t do your own job, then you are disabled. This is a very generous definition and a very expensive one.
- Any occupation: A client is considered disabled if the person cannot do his or her job, or any other job which the client is reasonably suited by education, experience or training.
- Benefit periods are divided into 2 groups—
- Benefit limits are normally 45% - 60% of the earned income, but can go as high as 80%. You cannot purchase a benefit amount equal to or in excess of what you are now earning. If that were possible, there would be little incentive to return to work.
- The deductible or elimination period in disability income is the “time without benefits” or the “waiting period.” Depending on the client’s age, his or her premium can be reduced up to 40% by having a longer waiting period between the onset of a disability and the receipt of payments.
- For individual use:
- For business use: