How to Maximize earnings with Future Purchase Options on Disability Insurance

For an agent/advisor there is one very important sale that can propel their career and their income like no other. I am talking about Future Purchase Options (FPO) on a disability insurance sale. If you are looking to Maximize earnings with Future Purchase Options on Disability Insurance keep reading. Just think what this feature can do on one sale, then multiply it for an entire book of business!

FPO’s work like this: 

You sell a young upward income person disability insurance with the FPO rider. This guarantees them the right to buy more disability insurance every 3 years without any medical questions. The only requirement is that their income is higher. This allows the agent to make another sale with full first-year commissions every 3 years! Proof of income is the only underwriting requirement. You now have a reason to follow up with your client and sell more disability insurance. It’s an ideal time to review their life insurance as well. Keeping their disability coverage up with their income is an important feature for the client. Your renewals, persistency bonuses and income from disability insurance increase with each additional sale.

Here are 3 anecdotal stories proving that FPOs are better than compound interest!

1. I had a broker call who told me he had just received a $6,000 commission check and was afraid to cash it. He did not know what it was for. I called the carrier and found out 5 owners of a company he had sold to 3 years ago exercised FPO options through the mail with the disability carrier, doubling their disability coverage. And his commission was $6,000!

2. I personally have a client who was referred to me for disability insurance. I called her every 3 years and exercised several FPO options. She married another very successful investment banker and after 15 years as a disability client, I sold her $10,000,000 permanent life insurance policies. These are the largest individual life sales I have ever made.

3. I helped a retired broker with a life client and sold $1,000,000 20-year term for $900 a year. I noticed the client was a 50-year-old physician making $400,000. I asked him if I could review his disability insurance and found that all he had was what he purchased as a resident, $3,500 a month. I quickly sold him another $10,000/month for a premium of $6,600. Our agency has made a career helping agent/advisors sell disability insurance and then earning their life insurance business. You can do the same thing by using disability insurance as a door opener to life insurance sales. Just think about all the business applications for disability insurance. For every life sale there is a disability sale. Start by promoting disability insurance to your life insurance applicants! Learn from your peers. Many of the best life insurance agents have also sold disability insurance. The renewals are better than most any other product. Retired life agents always wish they had sold more DI, because those are the only checks they still receive in retirement — disability insurance renewals! Diversified Brokerage Specialists has been in business for 75 years. We invented the Business Overhead Expense disability policy in 1955. You can count on Diversified Brokerage Specialists to help grow your business and improve your success in the life and disability insurance markets!