How to Identify the Best Prospects for Disability Insurance: A Guide for Financial Professionals

Matt Jackson
Apr 22
5 min read

Disability insurance (DI) is one of the most powerful tools to protect a client’s most valuable asset—their ability to earn income. Yet despite its value, it remains one of the most underutilized types of insurance in personal financial planning. As a financial advisor or insurance professional, your ability to prospect effectively will not only help more people secure essential coverage but also streamline your own success in offering DI as a core service.

Prospecting is the crucial first step in the disability insurance sales process. While it would be ideal to provide coverage to every client, the reality is that certain individuals make better candidates for this type of protection. Identifying strong prospects early ensures a smoother underwriting process and increases the likelihood of a successful policy issue.

In this guide, we’ll break down the major factors that determine strong disability insurance candidates: age, income, health, and occupation.

1. Age: The Younger, the Better

The first and perhaps most critical factor in DI eligibility and cost is the applicant's age. Disability insurance is designed to replace lost income during a person’s working years. Since the benefit is meant to provide protection until retirement, most policies are structured to expire at ages 65, 67, or 70—depending on the policy and carrier.

This means the older the client, the fewer years they have left to protect, and the more expensive the premiums tend to be. Conversely, younger applicants have longer earning horizons and typically enjoy better health, making them more favorable risks for insurers.

Ideal age range: Clients between 25 and 55 years old tend to be in the sweet spot for DI coverage. These individuals are typically early- to mid-career, building wealth, and more receptive to long-term planning.

Added Bonus for Younger Clients: Benefit Increase Riders

Another compelling advantage of insuring younger clients is the ability to attach a Benefit Increase Rider (BIR) to their policy. This rider allows policyholders to increase their benefit amount in the future without additional medical underwriting—just financial justification. That means your clients can lock in coverage now and grow their benefits as their income rises, even if their health changes later in life.

2. Income: The Foundation of Financial Underwriting

Unlike other forms of insurance, disability insurance is directly tied to a client’s income. This is because the primary purpose of DI is to replace a portion of the insured’s lost earnings due to illness or injury.

What is Considered in Financial Underwriting?

Insurers use financial documents such as tax returns to verify income. For certain professionals like doctors, lawyers, or residents starting their careers, signed employment contracts that guarantee future income can also be used.

There are even specialized programs for new professionals or students in certain fields, which allow for future income potential to be considered when issuing coverage—often bypassing standard income verification requirements.

Who Qualifies?

Generally, anyone earning $25,000 annually or more can be considered for DI. However, because the benefits provided can be relatively expensive, coverage may be cost-prohibitive for clients at lower income levels.

Ideal candidates: Clients earning $80,000 or more annually are typically better suited to sustain disability insurance premiums comfortably. If a client is early in their career but expects a significant income increase, DI becomes an excellent tool for future planning—especially with benefit increase options in place.

3. Health: A Critical Factor in Medical Underwriting

Just like life insurance, disability insurance requires medical underwriting, meaning a client’s health can influence both their eligibility and the terms of coverage.

Healthy individuals are always the most ideal prospects—they’re more likely to receive favorable terms, lower premiums, and fewer exclusions. That said, individuals with health conditions aren’t automatically excluded from coverage.

Understanding Health Underwriting Outcomes

Mild to moderate health issues: Clients can often still qualify for coverage, but with exclusions related to the specific condition. For example, a client with recurring back pain might receive a policy with a back-related exclusion.
More significant health issues: Some policies may be offered with modified terms, such as shorter benefit periods, longer elimination periods, or added premium ratings.
Simplified underwriting: Many carriers now offer streamlined underwriting for young, healthy applicants, often requiring fewer medical exams or questionnaires.

Questions to Ask Upfront

To ensure a smooth application process and manage client expectations, it’s wise to ask the following:

Do you currently take any medications? If so, what are they for?
Do you have any upcoming surgeries or procedures?
Have you been hospitalized in the past 10 years?

These questions can save time, reduce surprises, and build credibility with your client by setting realistic expectations early in the process.

4. Occupation: How Job Duties Affect Premiums and Eligibility

Another often-overlooked aspect of prospecting is occupational classification. This determines how an insurance company evaluates the risk associated with a client's job.

In DI underwriting, the nature of the work a person does is directly correlated with their risk of injury or disability. The more manual or physical the job, the higher the risk—and typically, the higher the premiums or policy limitations.

Occupational Risk Spectrum

Low-risk jobs: These include administrative professionals, consultants, software engineers, and executives. These clients often receive the most favorable rates and broadest coverage options.
Moderate-risk jobs: Sales professionals, field workers, and technicians may still qualify for good coverage, though pricing may vary.
High-risk jobs: Contractors, construction workers, athletes, and other physically demanding roles might face exclusions, premium loadings, or benefit period limitations—but coverage is still available in many cases.

Questions to Ask Clients About Their Occupation

What is your job title?
What industry do you work in?
What are your daily responsibilities?
Do you work primarily in an office, or are you frequently in the field?

Even subtle differences in job duties can impact how a carrier classifies the occupation, which makes it essential to gather accurate details.

Prospecting Checklist: Who Makes the Best DI Candidate?

To help you identify strong disability insurance prospects quickly, here’s a simple checklist to keep on hand:

Age: Between 25–55 years old

Income: $80,000 or more annually (or strong income trajectory)

Health: Good to excellent health with minimal medical history

Occupation: Lower-risk or non-manual duties preferred (but not required)

Even if a client doesn't check every box, don’t write them off. Many carriers offer flexible solutions to accommodate a wide range of health histories, job roles, and financial situations.

Be the Expert Your Clients Trust

Prospecting effectively for disability insurance is about more than selling a policy—it's about helping clients safeguard their financial future. By understanding the key eligibility factors—age, income, health, and occupation—you can confidently guide clients through the process and ensure they’re receiving the protection they need.

Remember: Ask thoughtful questions, gather complete information early, and set realistic expectations. Doing so not only improves the chances of a successful application but also builds lasting trust with your clients.

With the right knowledge and strategy, you’ll be well on your way to becoming a DI expert—and a trusted resource your clients will rely on for years to come.