Almost all your clients understand the need for life insurance, and many approach you about buying life insurance. When you present life insurance, make a point to also present disability income.
Unlike death, a disability may not be a certainty to your clients, but it is absolutely a sobering reality. The chances of becoming disabled and losing the ability to earn a living during one’s career are three times more likely than dying during that same period of time.
Furthermore, 25% of those venturing into the workforce today can expect at some point to become disabled for at least a period of 12 months in duration prior to normal retirement age. Disablement causes severe financial consequences. Over 40% of filed bankruptcies in this country stem, at least in part, from loss of income due to medically-related disabilities. Paycheck protection is imperative to protect your client’s financial security during their working years, and it goes hand-and-hand with life insurance.
It’s an easy transition: “Now that we have protected your family’s financial independence against your untimely death, let’s look at protecting them in the event you become too sick or injured to work for a period of time. In fact, the likelihood of a disabling injury or sickness is greater than death during your working years.”
Individual disability income ensures that your clients will be able to maintain their financial independence in the event they become too sick or injured to work for a period of time.
A LIMRA study shows that only 18% of consumers recall being approached about buying disability insurance – less than half as many as those being approached for life insurance.
Busy young professionals often are not savvy about the need to protect their paychecks with disability insurance. It’s not as commonly understood as life insurance. However, your clients are more likely to become disabled during their working years than to die.
As we start the new year, take stock of your clients’ financial independence.
- Are their paychecks protected?
- Do they have adequate disability income protection?
- If they have group LTD, is it a taxable benefit?
- Do they need to layer individual disability insurance on top of their group LTD to maximize their paycheck protection?
- Have they exercised future increase options on their existing disability income policies to keep pace with their rising incomes?
Financial planning is a two-tiered process: build the plan and safeguard the plan. Most financial professionals, insurance brokers, and their clients understand the need for income protection in the event of an untimely death. However, many financial professionals and insurance brokers neglect to discuss income protection with their clients in the event of a disabling sickness or injury—the greatest risk for clients in their working years.
Research shows that clients are concerned about protecting their paycheck; yet they do not think about asking financial professionals about disability income protection. This is your time to shine. Educating your clients about the risk, and the various disability income options available is a service your clients will appreciate. For some, it will mean helping them see the risk. For others, it may be reviewing their employee group long term disability plans to determine if the plan offers adequate protection, and if not, providing some supplemental individual coverage to maximize protection.
If your clients are self-employed, you can also discuss protecting their businesses with keyperson disability income, business overhead expense, business loan protection and buy-sell protection.
Your clients will appreciate that you have protected their financial plans from the risk of an untimely death and the risk of a disabling illness or injury.
Not totally comfortable presenting disability income?
You can rely on Source Brokerage’s disability insurance specialists to answer your questions and prepare you for the presentation or we’ll even make the presentation for you.
Either way, you earn the same commission, and your clients gain disability income protection and financial independence.
So what is the value to the broker? You gain grateful, trusting clients as well a strong income stream from disability income sales. First year commissions on individual disability income policies are 50 percent of the first-year premium, and 5-10 percent renewals for ten years or longer. It’s a win-win for you and your clients.
Enlist the Help of Your DI Experts
Remember to use the resources available from Source Brokerage Inc. We’re happy to assist with all aspects of the sale, and we’ll even sell the policy.
Ready to get started?