“Why paycheck protection? I was thinking about life insurance,” your young professional client asks.
As a nation we carry a heavy debt load, especially in times of optimism when jobs are plentiful and economy is humming.
Two out of three Americans live paycheck to paycheck. Losing income for even a short period of time can be financially devastating for young professionals who are starting their careers.
Many young professionals are first-time home buyers with significant mortgage debt. In addition, the average student debt hovers around $37,500. And the debt load grows to an average of $189,000 for medical and dental school grads.
Disability causes 50% of all mortgage foreclosures, 2% are caused by death.
With no income, contributions to a 401K plan stop too, even employer contributions.
New Medical Therapies Extend Life and Increase Medical Expenses
Medical science has made great strides in treating conditions like cancer, heart conditions, and autoimmune diseases. People who once died from these conditions are living. However, the treatments and therapies can make it impossible to work for a period of time.
The cost of long-term medical therapies and extended hospital stays can be overwhelming, even with health insurance.
The #1 threat to a young professionals financial stability is a disabling illness or injury, not death.
Help Your Clients Understand the Need for Paycheck Protection
Your role as an advisor is to help your clients understand this risk and why paycheck protection is important. Lead with disability income protection. Everything in the financial planning process rests on the client’s ability to earn an income:
- debt repayment
- dependents’ college savings plans
- retirement contributions
Individual disability income plans have features that can help your client cover the financial obligations above.
A individual disability income policy will pay a monthly benefit to the insured as long as they are too sick or injured to work in their occupation, maintaining the insured’s lifestyle.
A student loan repayment rider can be added to an individual disability policy. The rider provides a monthly benefit in addition to the policy base plan. The benefit is based on the amount of the current loan payment usually ranging from $250 – $2,000. The benefit period is 10 or 15 years, depending on the length of the loan, and begins on the effective date of the rider.
A retirement protection disability policy is also available. It will continue to make the maximum retirement contribution into a trust until the insured reaches retirement age.
Ready to lead with disability income? Partner with Source Brokerage, Inc. Our disability income specialists can provide quotes, help you understand the contracts, and walk you through the sale.
To learn more about partnering with Source Brokerage for all your clients’ disability insurance needs, contact Steve Crowe at ext. 222, Ellen Crowe at ext. 223 or Brian Hettmansberger at ext. 230 Chris Bussey at ext. 220 or request a quote.