Disability Insurance: Help Clients Learn the Truth

News Image 07-14-2014

When it comes to thinking about disability and its financial impact, most people just havenít really thought about it. The Council for Disability Awareness studied workersí perceptions of disability and how prepared they are to deal with a loss of income.(1) Here is what they found:

  • 83% felt a disability could happen to anyone at any time, but deny it could happen to them.
  • 42% said their primary source to replace lost income would be sick leave and vacation benefits, but were unsure how much it would really cover.
  • 65% admitted they couldnít survive an income loss of more than a year, but didnít have a clear plan on how they would get by.
Learn the Truth
Maybe your clients never thought much about their ability to earn a living as being their most valuable asset, but it is. It helps pay bills, living expenses and insurance. They may spend it on recreation, vacation, education and allocate part of it to retirement savings. Your clientsí lifestyle and financial planning depends on their ability to earn a living. Thatís why it is important for you to share the facts about disabilities:
  • Most disabilities donít happen at work and more than 90% are caused by illness, not injury.(2)
  • Employer-provided disability insurance usually replaces about 60% of your clientís income. But payments maybe taxable, therefore reducing benefits to about 40% of income.
  • Social Security Disability Insurance may not be there when they need it. More than 64% of initial benefit applications were denied in 2010.(3)
BUA Can Help
While facts add perspective, they donít tell the whole story. Remind your clients when they add disability income protection to their financial plan, they are taking an important step toward securing their income during their working years. We have the product portfolio and experience to make finding the right disability income solution easy. Give us a call to discuss how to make disability income protection a lucrative part of your practice.

(1) CDA Consumer Disability Awareness Survey, Long Term Disability Claims Review, Council for Disability Awareness (2010); most recent available.
(2,3) Social Security Administration, Applications for Disability Benefits and Benefit Awards Table (165-2010); most recent available.



Jim LaFleur
Phone: 330.576.1131
Toll Free: 1.800.792.6795