Use Return of Premium Disability Insurance to Find Affluent Clients
To learn more about ROP DI policies you can use to pick up affluent clients (especially doctors), click on the following link:
Disability insurance (DI) is pretty much a lost product in the insurance industry. Most advisors don’t sell it and the ones who do are slowly retiring.
What does that mean? It means OPPORTUNITY for advisors who can help clients who need DI.
26-Page DI Educational Module
The biggest reason advisors don’t sell DI is because they don’t know much about it. If you want to learn all about DI, all you have to do is read my 26-page education module. To download the module in a PDF for FREE, click on the following link:
Should certain clients buy DI? Absolutely! Here’s an interesting stat: At age 42, it is four times more likely that you will become seriously disabled than die during your working years.
Why don’t clients buy DI? They don’t want to pay the premium (similar to term life).
What’s the solution to getting clients over this hurdle? RETURN OF PREMIUM DI!
Let’s look at an example of ROP DI and see if it makes financial sense.
Let’s compare the ROP product to a non-ROP with a similar benefit to a Mass Mutual policy. I’ll use a 32-year old female OB/GYN doctor with an $8,000 a month DI benefit.
Mass Mutual premium = $7,269
ROP Policy premium = $11,209
So, which one is a better deal? Let’s look at the pure math first.
-Mass Mutual premium annually until age 65 = $239,877
-ROP DI premium annually until age 65 = $369,897
The ROP premium will pay $369,879 back to the client at age 65 and the Mass Mutual policy will pay ZERO back to the client.
What’s the effective rate of return on the difference in the premiums paid?
5.24% net (needing over 6% gross to generate the net return.
Forced Savings—the DI policy is like a forced savings account. The client needs the DI coverage and by doing so is essentially going to generate a 6% GUARANTEED gross return on the difference in premiums. That is a VERY strong value proposition as to why any client should buy ROP DI.
Limitations with ROP DI
1) The maximum benefit you can obtain with the best product out there is $8,000. So, for clients who would like $15,000 or more, they’d use a combination of ROP and non-ROP.
2) Some of the definitions are not quite as good. The ROP has Own Occupation, but the definition isn’t quite as good as say a Mass Mutual and the duration is only five years instead of until age 65.
So, ROP DI is not a perfect product, but I can guarantee you that clients who should have or are considering getting (new or additional) coverage will love the ROP concept (something they are not being offered by their other advisor(s)).
Marketing to Doctors
Nearly EVERY doctor has DI. Most want additional DI but don’t want to pay the extra premiums. ROP DI will help get them over that hurdle. It’s like shooting ducks in a barrel.
What’s the best way to start working with doctors? Learn “Asset Protection” planning.
What’s the best way to learn AP planning?
1) Take the Certified Asset Protection Planner (CAPP™) course.
2) Read my Doctor’s Wealth Preservation Guide.
The Doctor’s Wealth Preservation Guide (read for Free)
To read the 8th Edition of my doctor’s book (350 pages and the best book in the industry to teach doctors how to grow and protect their wealth), click on the following link:https://advisorshare.com/doctors-book