The Hidden Risk: Lack of Disability Income Planning
Disability insurance is frequently neglected in financial advice—even though a client’s ability to earn income is their greatest long-term asset. According to the Financial Planning Association, many advisors undervalue disability coverage, causing significant vulnerability in the event of serious illness or injury.
Key facts:
- Roughly 1 in 4 of today’s 20-year-olds will become disabled before retirement—more likely than premature death.
- A substantial portion of advisors fail to assess or discuss disability risk with their clients.
Why This Gap Matters
1. A Client’s Income Is Their Core Asset
Without disability protection, even a modest illness can derail long-term goals, especially for clients whose savings or investments depend on their ability to work.
2. Employer-Sponsored Coverage Often Falls Short
Many people rely on group disability insurance that may:
- Cover only a fraction of actual income,
- Tax benefits as ordinary income,
- Be lost if they change jobs or health precludes future coverage.
3. Lack of Planning Adds Risk
Neglecting disability planning exposes clients to liquidity shortfalls, emotional stress, and disruption of estate or legacy goals.
Make disability planning a core part of your financial reviews with clients. Treat it with the same priority as retirement savings, life insurance, and estate planning.
Missing this risk has real consequences: even solid investment strategies fall apart without income backup or incapacity safeguards.
Source Brokerage disability income specialists can provide a quote. We can also help you with the presentation and sale.
Learn more about teaming up with our disability income specialists to increase your disability income sales to your clients, contact Steve Crowe at ext. 222 or request a quote.
