Guidelines To Follow When You Have An Impaired Risk DI Client
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Selling an impaired risk disability income insurance policy is not unlike selling any other DI policy. The basic rules are the same, if not more significant, when you are working with a client in the impaired risk market.
Remember that you are not just making a sale. What you do, or dont do, can directly impact the lives of your clients and their families for many years. Here are some guidelines to help you fulfill your clients needs and, in the end, make you their trusted financial partner.
Avoid assumptions. Many agents go into a DI sale making two assumptions. They assume they already know what type of policy to sell and how much DI coverage the client needs even before they ask a single question.
In fact, to a great number of agents, a product is not worth buying if it is not non-cancelable, or at least guaranteed renewable to age 65, and does not have the purest own occupation provisions. While offering such coverage may be a noble approach if your prospect list is made up of perfect people, the reality is that not everyone qualifies for, or even needs, the premier DI contract.
The best way to avoid the assumption hazard is to talk to your client. Learn about the family, financial situation and needs, and health before you ever try to make a sale.
In the process, help the client understand that the largest burden of risk in regard to disability lies in the first two years of a claim. Those two years are also the time that disabled individuals adjust their lifestyles, change their buying habits, and learn to cope with the changes in their lives. This discussion should help you identify the clients own needs.
Be thorough. Impaired risk insurance products are built to cover people with illnesses. The carrier already knows your client has health issues, or you wouldnt have submitted an application. So provide the information the carrier needs to assess the risk.
Remember, even if a carrier claims there is "no medical underwriting," at some point, every client is underwritten. Whether at the time of application or time of claim, the carrier will underwrite and it will be thorough. You should be thorough, too.
Keep in mind that these products are designed to cover over 90% of applicants. If your clients health is poor enough to be in the other 10%, chances are that a trail of medical records exists that will severely jeopardize the clients chances of receiving benefit. Too frequently, individuals are denied benefits due to omission or fraud for things that would have been covered had they been revealed on the application.
