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DI Awareness Month Brought to you by NAIFA & International DI Society.

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Presentation on theme: "DI Awareness Month Brought to you by NAIFA & International DI Society."— Presentation transcript:

1 DI Awareness Month Brought to you by NAIFA & International DI Society

2 Prospecting Worksheet NAME & Telephone Number NAME & Telephone Number To whom was your best life insurance sale in past 2 months? With which two clients do you have the closest personal relationships? Who do you know that is successful today?

3 Prospecting Worksheet NAME & Telephone Number NAME & Telephone Number Who do you know today that is most likely to be highly successful five years from now? Who have you sold DI to that you have not talked to in the past 3 years?

4 Prospecting Worksheet NAME & Telephone Number NAME & Telephone Number Who do you know that’s a business owner? Who do you know that works for the major employers in your area?

5 Real Life Story

6 The Shocking Need for DI

7 Major Causes of Disabilities 1998 - 2003 A major insurance company’s Individual Disability Claims

8 Disability On the Rise 70% -100% -80% -60% -40% -20% 0% 20% 40% 60% 80% 100% Death Disability Hypertension Cerebrovascular Diabetes All Four Heart Diseases Source: National Center for Health Statistics - 1999 44% 36% 55% -70% -29% -48% -27% -32%

9 Odds of Disability Source: Society of Actuaries Studies, Milliman USA (Percent) Probability of Death & Disablement Before Age 65

10 Your Family "Statistics have shown that American workers have a 30% chance of becoming disabled before they reach their age of retirement." - U.S. Social Security Administration

11 Local news headline “Family of Accident Victim Seeks Support” The family of an Evansville man who suffered serious injuries after an October wreck is appealing to the public for help. A fund has been set up at Fifth Third Bank for Nathan M., a 35-year-old truck driver who was driving home from work Oct. 22 when he collided with a semi-truck on Hitch and Peters Road. Nathan is being treated at Select Specialty Hospital, where doctors recently brought him out of a coma. His long-term prognosis is still unknown, although he is beginning to show initial signs of progress, said his wife, Jill. “He’s finally starting to respond to people a little bit, but he’s not talking or sitting up or eating or anything like that,” she said. “They keep saying just to wait, to pray and that hopefully he’ll get better.” Nathan and Jill, who have sons aged 9 and 16, did have insurance to cover most of the medical costs, although they still must pay about $9,000 in hospital bills, Jill Martin said. Nathan Martin did not have disability insurance. Tax-deductible donations can be made at any Fifth Third Bank.

12 Scheduling the DI Conversation THINK BEFORE YOU MAKE THE CALL 1. Remember that the purpose of the call is to keep the purpose of the call: SCHEDULE THE APPOINTMENT. 2. Ask permission to continue the conversation: “Did I catch you at a good time?” 3. Begin with, "The purpose of my call is..." 4. Ask questions to engage the prospect or client. 5. Ask “how” and “what” questions in response to objections. 6. Do the “ABC’s” A lways B e C losing for the appointment.

13 Scheduling the DI Conversation Plan what you will say to greet the prospect.  Client/Qualified prospect call o The client knows you o You know something about the client  Referral call o The client does not know you o The client knows your referral  Cold call o The client does not know you o You do not know the client

14 Appointment scheduling exercise  Hi_____ o My name is ______. I work with small business owners in the area of business continuation planning should they become ill or injured. I have some ideas I would like to share with you for 10 minutes next week. Would Thursday or Friday work for you ?

15 Overcoming Objections  “I have a plan.” o Do you know the benefits as well as the gaps in your plan? o When was the last time you reviewed your plan?

16 Overcoming Objections  “I don’t have time.” o If you become disabled soon will you regret not using 15 minutes to meet with me? Would Tuesday at 2 or Thursday at 10 work for you?

17 Overcoming Objections  “I’m not interested.” o I wasn’t either until [state personal event]. If you became ill or disabled you would be interested then but it would be too late. o A family member was injured and it was unexpected. o Could we talk for 15 minutes on Tuesday at 2 or Thursday at 10?

18 Exercise Pair up and practice the call to set the appointment. Pay attention to overcoming objections. Use your cell phone as prop to practice.

19 Action Step

20 DI Policy Audit Differences Between Policy Types  Group  Individual  Association

21 DI Policy Audit Group Long Term Disability (TRIPP) T axable R everse discrimination I ncentive compensation P rovisions Occupation protection Cost of living adjustment? Catastophic benefits? Offsets - SSDI and workers compensation P ortability? Not owned or controlled by insured

22 DI Policy Audit Individual (ROC) Renewability Non-cancellable Guaranteed Renewable Conditionally Renewable

23 DI Policy Audit Individual (ROC) Optional Provisions Residual or partial Cost of Living Adjustment (COLA) Catastrophic Future Purchase Options

24 DI Policy Audit Individual (ROC) Coverage Details Elimination Period Benefit Period Benefit Amounts (offsets) Definition of Disability

25 DI Policy Audit Association Plans Group Individual

26 Anatomy of the DI Conversation 1. Facts 2. Feelings 3. Needs 4. Solutions 5. Close

27 FACT Three Possible Interruptions  Every decision in any financial plan is based on the ability to earn an income  The 3-legged stool o Live long o Die young o Become ill or injured and cannot work

28 Successful Financial Strategy Estate Distribution Risk Management Accumulation Income Protection = The Foundation Personal & Business Assets Business Ownership Retirement / Investments Property Auto & Home Life Health

29 * Age 45 earning $100,000 currently – 5% annual increases in income Fundamental Risk Management ASSETVALUECOST TO INSURE Car (1 out of 70 loss)$30,000$150 / month Home (1 out of 88 loss)$250,000$150 / month Health$1,000,000+$400 - $1,000 / month Life (1 out of 106 loss)$500,000$30 - $300 / month Ability to Work (1 of 8 loss)$ 3,307,000 *$220 / month

30 Sources of Income  Savings  Social Security  Liquidate Investments  Loan  Family, Friends & Charity If you save 10% annually, one year of disability may wipe out 10 years of savings Roughly 60 percent of all disability claims are denied * Will you get the true value? Do you have enough to retire today? Without an income & ability to repay, who will lend you money? Do you want to depend on them? *Source: Social Security Bulletin Annual Statistical Supplement, 1998.

31 Your DI Story Demonstration  Effective elements of a story: o Real o Shocking o Demonstrates the value of the product  Demonstration

32 Your DI Story Exercise You have a few minutes to write the story of how a disability impacted you or someone close to you that you could share with a client.

33 Establish the Need

34 Present the Solution

35 Close

36 Liability Release Letter LIABILITY RELEASE I,, (hereinafter, "the client"), acknowledge that (hereinafter, "the agent") has advised me of potential loss of income I would suffer in the event of physical or mental disability. The agent has recommended that I purchase a disability insurance policy in order to insure myself from this potential loss. I have elected not to purchase a disability policy at this time, and will self-insure this exposure. I do not expect the agent to contact me in the future regarding the purchase of a disability income policy. I agree to contact the agent and/or another insurance professional if I decide to consider the purchase of disability income coverage in the future. I understand all the consequences associated with not purchasing a policy at this time. These include, but are not limited to, the loss of disability benefits that would be paid (tax-free) from the insurance company, as well as the future underwriting requirements that must be satisfied at such time an application is submitted. X Date (Client) X Date (Agent)

37 DI Conversation Summary  Facts  Feelings  Needs  Solutions  Close

38 Your Family "Statistics have shown that American workers have a 30% chance of becoming disabled before they reach their age of retirement." - U.S. Social Security Administration

39 Resources Websites: Each other: Exchange business cards

40 Final Note The most important call is to yourself. Have you purchased your DI policy? If you don’t own it you won’t sell it! That’s losing income twice!

41 Summary Disabilities are on the rise because people survive what previously caused death. You have a 30% chance of becoming disabled before you retire. What’s your plan? Schedule the DI Conversation “to review your plan should you be disabled.” Be prepared to overcome objections. Ask, “Will your plan to replace your income work if you are disabled?” Address the facts and then the feelings before establishing needs and solutions.

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