Part 2: Why we Know There is a Problem in LTD Conversations:

LIMRA Survey Data:

There is a massive gap between people who believe they need disability insurance and who actually have a policy. “LIMRA research shows only 1 in 5 consumers own disability insurance despite almost half (48%) saying they believe they need it – a drop of 11 percentage points from 2012. The most frequent reasons consumers give for not buying disability insurance are a lack of knowledge and indecision.” The other major complaint is cost.

Part 3 of this article will address the most effective ways to address the concerns about knowledge, indecision, and cost.

Personal Experience and Speaking with CFPs:

If you have been having conversations about life and disability insurance, this gap should be obvious. Think about it: What percentage of your clients follow your advice to get term life insurance? What percentage of your clients follow your advice about getting disability insurance? I can say with high confidence that almost all of your clients get life insurance when you recommend it, and under 20% get disability if you are not having effective conversations about disability insurance. If this is your experience, you are far from alone. You are in the vast majority.

This was my personal experience for the first five years of my career. Almost all of my clients that had a need for life insurance would get it. Almost nobody would follow my advice to get long-term disability insurance. I know this is my fault and due to ineffective conversations because 1) roughly half of my clients would purchase supplemental insurance (I was naive and did not know any better) and 2) I am able to convince roughly half of my qualified clients to get disability insurance now. Even my disability brokerage where I submit business has been surprised by my applications of single people in their 20s.

By failing and now succeeding, I have been able to identify and teach why the conversations actually go off the rails and how to change the lives of your clients for the better by having better conversations.

Why Sales and Negotiation Strategies Should be Embraced and not Shunned

If you care about accomplishing a goal with someone, you are in the business of persuasion and negotiation and are consequently selling what you believe are worthwhile ideas or products. Most people’s knee jerk response to sales is negative – thinking that anyone in sales is a used car salesman, selling snake oil, and manipulating others. The truth is that persuasion, sales, and negotiation are all deeply rooted in basic human psychology. As such, making yourself presentable, cleaning up, and dressing professionally are no less of sales tactics than techniques and strategies you would learn from a sales seminar. We should not only take advantage of how people respond to general appearances but also how we speak and convey ideas.

Intelligent people, like your clients, are susceptible to these psychological sales tricks – not just fools. Doctors make different medical recommendations when presented with data in terms of survival rather than death (even though 90% survival rate inherently means a 10% mortality rate). MBA students willingly spend more money on tickets when using a credit card than using cash. As a result, it is best to be intentional with how to present ideas and information to clients so that they take the best course of action whether it is for their investment portfolio, estate planning, or protection and risk management.

In the following article of this series, you will learn psychologically effective and simple techniques so you can more easily direct your clients to take or not take the actions you want. Although presented with a focus on disability, these techniques can be used in any important conversation you have whether in business or your personal relationships.

This series of articles put into action can make a dramatic difference in improving your business and the lives of your clients and their dependents. It is a culmination of 8 years of personal experience of speaking with clients, 1000s of conversations, and techniques and ideas brought together mainly in the fields of study of positive psychology, behavioral economics, and sales and negotiation strategies.

To read the next part of this article, click here.