Top tips on selling income protection
How to improve conversions for Income protection
Most adults in the UK that work would benefit from having income protection. However it is one of the least popular of insurances taken out, so why is this? Customer see the product as “not good value”, why mainly because it is not understood.
So the great news for a broker is, there is potential to grow an income protection business. The only step is convincing a customer that they need it.
Typically, there are 3 insurance steps when taking out a mortgage:
- Life insurance
- Critical illness cover
- Income protection
So the bad news is, if there is no budget, customers don’t buy income protection.
A few tips to help you successfully sell your products
Know your product
Provide clear details about what income protection insurance offers. The customer needs to fully understand what is on offer and what benefit it is for them.
Have a high understanding of the product, it’s great to know the highlights. To convert at a higher level use key features to sell the product, what makes it stand out.
Things to look out for include:
- Cover limitations for smokers and pre-existing health conditions
- Claim statistics
- Specific features that may appeal to your target audience
- Additional benefits
Give examples to demonstrate its true value
There are a number of ways that income protection can provide a vital financial safety net for your clients. For example:
If the main breadwinner of the household was diagnosed with a serious illness, most people would have to cut their day to day living costs drastically in order to cope. Income protection provides them with a replacement income that would mean their financial situation wouldn’t be compromised too much.
Also, many people think that their employer would continue to pay their full salary if they were off with long-term sickness or a serious injury. However many employees will only receive statutory sick pay – currently £92.05 per week and this is only paid for up to 28 weeks.
Prove that claims are actually made and paid
Customers like facts. A customer will not want to take out an insurance policy if they don’t have any confidence in it.
A common worry is: “will it pay out should they find themselves out of work”.
The public often perceives insurance providers as trying to decline claims through a variety of loopholes. This is not the case. many providers publish the statistics of successful claims. So for you, this is a great selling tool, customers are more likely to be reassured by the figures.
Ultimately customers are unlikely to purchase a product if they don’t fully understand the benefits that it provides.
So to conclude a combination of the above information can help to increase consumer confidence.