It's fairly common knowledge in the insurance industry thatindividual disability income insurance can be a tough sell.Individuals can often view it as an unnecessary purchase—there'sonly the possibility that a disability could happen to them, so whyspend the money? The mere potential for a disability often is notenough justification for individuals to take action.

This consumer mentality isn't the only roadblock; the sales andclosing process comes with its own challenges. It takes a lot ofpersistence from a broker to get a full commitment from a customer,and patience is required to see the policy through the underwritingand approval process.

The key to overcoming the above issues and achieving salessuccess—both in solidifying a partnership with a customer andmaking the actual sale happen—lies in a broker's approach:

• Don't sell the policy. Educate. Customersdon't want to be sold to; they want knowledge and education so theycan make the right decision for themselves. Part of the educationalprocess is supplying individuals with truths and facts that arerelevant to them. In addition, you can provide a real-life exampleof how a disability has financially impacted someone.
• Really know the customer, products andcarriers. When selling IDI insurance policies, offeringone product as a universal solution isn't going to cut it. Get toknow your customer—personally. What are his or her goals, needs,wants? Based on your relationships with carriers and knowledge oftheir products, take this information and seek the appropriate fit.Always provide a catered solution.
• Communicate the fundamentals of disability.There are a variety of disabling injuries and illnesses that cancause different levels of disability and impact the steady flow ofincome most individuals rely on for everyday living. Not everyoneknows what these are, nor do they understand them. It's importantto simplify common disability insurance terms so individuals canunderstand how IDI policies work and how IDI insurance can helpthem in their time of need. If you can break down the majordisability categories—total permanent, total long term, totalpartial, partial progressive and short term—into easy-to-understandterms, that can go a long way to making IDI insurance real andpersonal for individuals.

Let's expand on one of the above points—the importance ofknowing your customers and available products. In such acompetitive marketplace, brokers that invest their time in gettingto know their customers on a personal level come out the strongest.When you find out what customers truly need, you can deliverresults by having a deep knowledge of the carriers and the productsthey offer to find the right fit.

Brokers should look for products that include relatable featuresand robust coverage options. These products are designed to growwith, and deliver on, a range of individuals' needs. Emphasizingthese types of policies and benefits during a sales conversationultimately helps close the deal.

Consider three examples of innovative policy features that haveresonated well with customers when purchasing IDI insurance.

1) Extended coverage benefit to care for lovedones.

When a family member or loved one becomes ill, a person can beforced to make a very tough decision: Stay at work and continueearning their full income or take a leave of absence from work tocare for their loved one and potentially lose income. In thisdifficult situation, some may even have to consider taking earlyretirement, quitting their job or dramatically reducing theirworking hours. An already emotional and stressful time is nowcompounded by financial worry.

Time with a loved one is invaluable. IDI policies that offer acompassionate extended coverage option can be a solution to thisproblem. This feature pays a monthly benefit proportionate to theinsured's loss of income if he or she must take time off work tocare for a loved one with a serious health condition. It offerspeace of mind and reduces financial concern so the individual canfocus on providing care for and spending time with his or her lovedone during a critical time.

2) Partial disability provision that encouragesreturning to work.

When a partial disability occurs, individuals are only able towork in a limited capacity, which can adversely impact theirpaycheck. A partial disability benefit that encourages a return towork can allow an individual to work part-time, rather than havingto file for total disability to collect benefits.

Policies that include a partial disability provision can paybenefits for an extended period of time if the disabled insured hasa loss of time, duties or income, regardless of the amount ofincome earned when returning to work. After recovering from thedisability, the insured will receive a recovery benefit if he orshe continues to have a loss of income due to the sickness orinjury that caused the disability.

3) Mental health coverage.

Mental health disorders, such as anxiety, depression and stress,can impact a person's work performance much like a physical issuecan. And it's more common than one might think: One in five workerssuffers from some level of mental illness, according to theOrganization for Economic Cooperation and Development. As a result,organizations are seeing an increase in employee absence. One studyfrom Mental Health America reports depression alone is one ofAmerica's most costly illnesses, costing more than $51 billion inabsenteeism from work and lost productivity, as well as $26 billionin direct treatment costs.

A key IDI policy feature is one that offers coverage for mentaldisorders or substance abuse without any special limitations. Manypolicies put limitations or restrictions on this type of coverage,which reduces the value of the benefit to the customer.

A policy with an extended benefit period and no speciallimitation on coverage for a variety of mental health issues anddisorders—instead of the typical two-year limitation—will add extravalue for clients. As mental health issues continue to affectindividuals, policies with strong mental health coverage provisionsare likely to become more common and more in demand.

A simple, yet effective, way to gain reliability and add valueduring the sales process and thereafter is taking a personalapproach to selling disability insurance. Educate and guidecustomers along the way, simplify the process and always dig forpolicy solutions that are flexible, customizable and go above andbeyond the necessities.

Steve Brady is the second vice president of individualdisability insurance sales and marketing at The Standard. He can bereached at 971-321-8240 or [email protected].