Disability Insurance Awareness Month
Only 14% of Americans own disability insurance compared to the 54% that own life insurance. Disability insurance: Incredibly useful, yet undersold.
If the pandemic has taught us anything these past few years, it is that you need to plan for the unexpected. One thing people don’t expect is that they might become disabled and need disability insurance to protect their income. Some people feel that if they don't work in a potentially hazardous occupation then there's no need for them to have disability insurance. But illness or off-the-job injuries can affect anyone, regardless of their occupation. That's why during Disability Insurance Awareness Month, BUA wants to support your efforts in ensuring your clients understand the importance of protecting their income.
Ask your clients: "Do you have a job and depend on your paycheck?" If the answer is YES, then you should consider obtaining disability insurance. The truth is, disability insurance is for anyone who works. Whether you are a salaried or hourly employee, freelancer or business owner, you rely on your income. Think of disability insurance as protection for your ability to earn a living.
Small business owners need your help in establishing plans that can help them protect their business, employees, and lifestyle. Did you know that there are DI policies that can help business owners:
- recover from the unexpected loss of top talent (Key Person Replacement)
- continue to pay fixed business expenses while a business owner recovers from a disability (Business Overhead Expense)
- provide the funds needed to purchase a totally disabled business owner's interest (Disability Buy-Out)
- continue to make payments on loans taken out for business-related purposes (Business Loan Protection)
When your clients plan for the future, they are likely considering their retirement funds or ensuring they have life insurance. But what about disability income protection? Your clients may think, "It won't happen to me" which delays making an important financial decision. But life happens and circumstances can change quickly.
A common objection advisors hear from clients when discussing the importance of disability insurance is: "I already have long-term disability insurance through my employer."
To respond, you can say they're off to a good start with the coverage through their employer, but there are some things about group coverage to keep in mind:
- It may not cover incentive pay (bonuses, commissions)
- The benefits are typically taxable
- Contractual definitions may not be as strong
- Group policies typically cover 40-60% of the salary, leaving a gap in income
- Supplemental DI Flyer | Sales Idea Video