Disability Insurance Awareness Month
61% of Americans say most people need disability insurance, yet only 26% have it. Disability insurance: Incredibly useful, yet undersold.
When we think about the things we insure, we often overlook our ability to earn income. People insure their homes, vehicles, identity, health, even our lives... but what is the asset that provides the ability to pay for all of those things? Disability insurance protects our ways of life should we no longer be able to work.
If you asked your client, "What is the longest vacation you've ever taken?" Some responses might vary from 1-2 weeks, maybe longer. The average person cannot go without income for more than two weeks. This is where disability insurance comes in. Even if your client doesn't think their annual salary is particularly large, over time it adds up and helps pay for daily living expenses. Life does not stop if you're unable to work.
"Do you have a job and depend on your paycheck?" If the answer is YES, then your clients 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