Ever Had Anyone Scared Off when Asked to Validate Income

[bill3173]

I've found that when presenting DI, or Large face amount Life Policies, it's important to be very clear about the income requirements and let the client know exactly what will be required as proof of income.

With Life Insurance, they can usually save face by backing off the amount requested, if the income cannot be verified, but with DI, I've found that if they jump up and say " I make $200K per year and want a $10K in monthly income" and can't back it up, they will drop it.

I had a guy recently, before we really got started, tell me that his income was mid six figures and needed a huge DI policy. I said fine, here are some good options and this is what's required. He basically told me to buzz off, he hated these plans.

Well, I knew the reason. He had backed himself into a corner with the bloated claim about his annual moolah. But I also had the feeling that he would come back to me.

He waited about 6 months, and came back to me, much more normal and down to earth. He does make a good income, but only about half of what was initially claimed.

Just wondered if anyone else had similar experiences?

 

[insuranceexec]

When selling DI I always start the presentation with my proof of income validation speech.

Mr. Prospect you appear to be doing very well for yourself. The wonderful thing about DI is that you only have to prove XX% of benefit as compared to your income. I try to get all of this in there before they can give me an inflated number. Lets face it most people do.

I was recently pitching a doctor for DI. During our first conversation he stated that he was going to be needing a policy that would pay 25K a month. When I told him that we would have to verify his income, He went along with it. I then told him lets look at your monthly expenses and compare that to your income. I told them that the reason I do this is to make sure they are not buying more coverage than they need. I have found that if you tell them how much they need, as opposed to the opposite, you do not have to worry about getting an inflated number to begin with. When it was all said and done the doc was spending about 8K a month to maintain his lifestyle, when I told him that this would be all that I would apply for; he was gracious. Obviously he had the income to warrant the 8K in benefit, and possibly would have hurt his ego had we applied for the 25K, which he would not have qualified for. Great Question and I hope this helps.

 

[SportsNut]

The old adage... "buyers are liars" is no more true than when discussing "ego statements" about ones income...

"oh yah, I made 4 mil last yr..." absolutely correct, except that he was speaking in yen, not dollars... converted into dollars, that seems to be 45K.

From someone that isn't a big DI guy: Let them know that purchasing DI is much like qualifyuing for a mtg loan, proof of income. Mention a little story about the u/w involved at time of claim and how you want to educate them as to what is required in documentation... tax returns, financial statements, etc., amd of that data is properly supported then the benefits may not be forthcoming.

 

[bill3173]

The old adage... "buyers are liars" is no more true than when discussing "ego statements" about ones income...

"oh yah, I made 4 mil last yr..." absolutely correct, except that he was speaking in yen, not dollars... converted into dollars, that seems to be 45K.

From someone that isn't a big DI guy: Let them know that purchasing DI is much like qualifyuing for a mtg loan, proof of income. Mention a little story about the u/w involved at time of claim and how you want to educate them as to what is required in documentation... tax returns, financial statements, etc., amd of that data is properly supported then the benefits may not be forthcoming.

Yes. It is easier not to get caught off guard by clients when you are actively "selling" DI, because, naturally, you are more familiar with the differences and strict documentation involved, for self employed, employee, contract employee, etc.

I've only taken orders from current life and health customers, and I had two back to back fib about the income and when I told them they had to prove it, they waited months to come back to me one waited 7 months and the other 6, but both are being placed.

Now, I just treat the cases like health insurance. Get the facts up front and make them feel comfortable while doing so.

We live in a money crazed world. Had a guy the other day, that was practically apologising for his income, which I thought was great.

We mentioned PFG in another thread. Start dealing with them, and you'll quickly realize, making stuff up is not an option.