Agent's Sales Journal recently spoke with one of the top Disability Income experts in the country to find out the state of DI today and how agents can become more successful in selling this important product.
Agent's Sales Journal: What does the Disability Income insurance market look like today?
Brian Griffin: The DI market is changing. In the past, the vast number of policies were sold to individuals, often in ones and twos. Today, the industry is shifting from one policy at a time to group coverage.
Employees typically have basic group insurance. Over the last few years, there is a growing number of employers looking to offer DI for key executives as a big differentiator. Because you can supply only so much coverage to key employees, there is a strong push to offer key execs stronger contracts or stronger products to fill the gap in coverage.
ASJ: How can agents present DI more effectively?
BG: DI is not a product that people instinctively ask about or say "I want." I believe it's a product that needs to be sold. It requires a lot more selling than some other types of insurance.
Sit down with the client and analyze various scenarios and outcomes. Point out how quickly a disability can bankrupt an individual. Getting someone to understand that they need to think about DI when they're younger and their income is on the rise and premiums are lower is crucial. The younger the
client is when they purchase it, the more advantageous and affordable DI will be.
Agents should perform a needs analysis for clients -- both individual and group -- provide education, and make consumers aware of the "what if this happened to you?" scenario. The need has got to be brought home.
ASJ: What major challenges are agents who sell DI facing?
BG: The problem is raising awareness. Organizations such as the International DI Society is made up of producers, agents, regulators. They work to raise awareness among agents. We need to remind agents that DI is a very important product. You have to start with a willing agent and make sure they are aware of DI. Consumers understand the basics -- that when tragedy strikes, they may not have set enough money aside for that emergency.
When an agent performs a needs analysis, a lot of them are now embedding DI into the mix. Balance the right protection to make sure the insured isn't left in the poorhouse.
ASJ: What is the industry doing to raise awareness?
BG: The International DI Society is committed to raising awareness. We need to get support from insurance carriers, too. There is a fair amount of activity in this business and a sizeable opportunity.
In addition, the industry needs to do a better job of representing the population as a whole. Clearly, there has been a change in the face of the U.S. Less than 5 percent of those who represent this industry are women or minorities. As an industry, we can help drive business by drawing a more diverse industry population. We need to commit to and focus on diversity and adapt to the new landscape.
ASJ: What advice would you give to an agent to help them be more successful in selling DI?
BG: Agents should ask themselves this: Who are your family members and who do you know who owns a business? Employers are looking for help from planners and agents. They are looking to offload costs. Make them aware of the opportunity to offer DI to employees beyond just their key execs. Employees have confidence in employers who are looking out for their welfare. Ask your client how things are going in other aspects of the business. Agents will have the most success by offering multiple products.
The role of the financial planner is expanding. There is a big trend by employers to shift costs and make more products available that employees themselves pay for. Remember, the landscape for all products expands when you get access to that employer.
Brian F. Griffin oversees individual disability income for MetLife, with responsibility for business practices and strategic planning. Mr. Griffin has been in the insurance industry for 25 years. Currently, Mr. Griffin is responsible for analyzing market trends, economic conditions, and implementing disability insurance strategies. For more information, visit www.metlife.com.
