An Advisors' Guide to Excess & Surplus Disability Insurance

Four Challenges Advisors Face When Positioning DI to Ultra-High-Income Clients

Posted Wed, May, 17th, 2023
By Exceptional Risk Advisors

For clients who have the tenacity and grit to be in the top 1% and earn in excess of $1 million, protecting their income takes a specialized approach.  From entertainers and athletes to business owners and highly compensated executives, unique resources are required to protect those with extraordinary earning potential.  However, there are many challenges advisors face when positioning disability insurance to ultra-high-income-clients.  Below we'll address four of the most common challenges and provide solutions to impact your business.

If you want to learn how the best insurance advisors position income protection and thrive in the Lloyd's of London market, we hosted a webinar earlier this month on the topic.  Check out the webinar recording here

Challenge #1: Client has enough disability insurance to cover expenses.

Solution #1: Rebrand disability insurance.  By shifting your approach from covering a client's expenses to protecting projected future income will keep the conversation moving forward.  Income protection implies that your clients are in control of their future and have laid out a plan to protect their estate and family.

Challenge #2: Have a large enough net worth and would be "ok" in the event of a disability.

Solution #2: Focus on Goals.  By changing your mindset when working with high-income-soon-to-be-high-net-worth-clients to focus on their goals, you'll differentiate yourself and practice.  A few questions to ask these clients: 1) How big do you want to build your estate? 2) How much generational wealth would you like to create?

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Challenge #3: People often don't recognize that their income is their largest asset.

Solution #3: Value of Future Income. When clients are too busy to learn what is at stake, as an insurance advisor you need to spell it out!  As a simple example, let's say your client is 45 years old and wants to work for 20 more years.  If they are earning $1 million annually - that is a $20 million asset!  Ask: What other asset do you own that is underinsured?

Challenge #4: Don't have time to hunt for new business.

Solution #4: Review Top Clients.  Look at your current book of business and review your top clients.  There are most likely 2 or 3 that need additional personal income protection today.  As the business jargon states: that's low hanging fruit!

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