“If your clients care enough to purchase life insurance for their loved ones, shouldn’t they look at disability insurance in a similar light?”
That’s why the need for life insurance is fairly easy to comprehend. Your clients usually purchase a policy to provide financial stability for the people they care about most after they are no longer physically here.
If your clients care enough to purchase life insurance for their loved ones, shouldn’t they look at disability insurance (DI) in a similar light?
DI can be a more complex idea to convey. Your clients hear the word “disability” and automatically think, “It will never happen to me.” Injuries or illnesses aren’t as certain as death, but they can be nearly as devastating.
Remember, disabilities do happen. More than one in four workers entering the workforce today will become disabled before retirement. Injuries and illnesses come in all forms and lengths — they’re not all catastrophic, and not all of them will last for the rest of your client’s life.
Are you considering disabilities that could keep your client from working in their occupation for six months, a year or even three years? Would your client be able to keep up their family’s standard of living without an income during those timeframes? Unforeseen medical bills, as well as usual expenses like mortgage or rent, utility bills, and the cost of groceries still pile up even if your client can’t work. Research says 48 percent of American adults would be in financial trouble in roughly three months if they became too sick or hurt to work.
Your high-income clients that are established in their careers may have a significant retirement savings built up. However, when a disabling event occurs during their working years, not only is their primary source of income disrupted, but they may now have to draw from those retirement accounts much earlier than expected. Individual DI will help them maintain their current lifestyle and keep their retirement accounts intact.
Essentially, DI should not only be looked at as “income protection”, but also “retirement protection”. Unless your client requests to start drawing from their retirement savings tomorrow, their source of income and savings are worth protecting.
Not sure where to start? May’s Disability Insurance Awareness Month is the perfect time and place. First, look at your existing book of business and make a list of clients who currently own life insurance. Next, reach out to those who wouldn’t be able to retire if they experienced a serious illness or injury tomorrow. Lastly, talk to them about protecting their family with DI in the same way your client is protecting their family with life insurance.
If you have questions about which disability insurance policy is the right solution for your clients, contact Palladium Group. We always mirror your fiduciary duty and help ensure your client’s future — and that of their families — is properly protected. At Palladium Group, we are committed to providing RIAs with a wholly agnostic approach driven by client outcomes, unparalleled white-glove service, and a transparent compensation model.
This is about outcomes over incomes.
People over products.