1 out of 3 adults will experience a disability event in their lifetime that will affect their income and their livelihoods. My wife had this problem earlier this year, where she had a brain aneurysm, and had severe medical problems in the first half of the year. With medical bills as high as $75,000 between deductibles, copays, and non-covered expenses, not to mention the total bill of $300,000, thankfully most of it covered by insurance, the medical bills alone could have bankrupted us. However, thankfully we had a small disability insurance policy on her that is paying while she recovers, and is taking some of the stress off. Obviously the medical bills are still being paid off, and there was disruption in my work as well and income, and my wife is still alive and functioning normally, but there could have been a major issue here if she was not covered.
Ask yourself, are you covered, and do you have a policy in case something happens? Too often we think this will never happen to us, and some of us, it never will. I have a major leg issues from college and my playing days, and thus, although I have a DI policy, part of the issues that can disable me will note covered but others will.
In addition, we usually think of disability putting us in a wheelchair, however, as my wife’s example shows, it might not be that, there could be others. I have seen advisors lose clients due to cancer, heart attacks, strokes, and they were not prepared to help them. Don’t be that advisor!!
Instead of disability, refer to it as income protection in case of sick or injured. And do not limit yourself just because a client has a policy has it at work. Here are some options or scenarios where disability works well:
1. I have disability through work! Great, I am glad you have taken the step to get this at work, and the program is extremely cheap. However, there are a few things you should know:
a. Group disability is cheap for a reason. It will only pay 60% of salary, and if you are making over 150,000 a year, you might see your benefit capped at 5,000 or at most 7,500 a month, which could limit your needed benefit.
b. Group Disability is almost always coordinated with Social Security. What this means is the insurance company assumes you are receiving SS DI and reduces your benefit down till you prove you are no longer receiving the SS DI benefit. However, according to the social security website, the average decision time is 27 months and the waiting period is 6 months, so your clients will be experiencing a shortfall. CAN THEY LIVE ON THAT SHORTFALL?
c. Finally, the SIMPE SOLUTION, get a supplement policy. Keep the group policy, but add some supplement insurance, so that they have at least some money coming in.
2. Business Owners: Too often, business owners do not protect themselves or their business. However, they tend to buy business interruption insurance in case of a flood or tornado stops their business. BUSINESS OVERHEAD EXPENSE OR BOE is Business Interruption for Disability. It will cover most of their expenses and keep their place open. Perfect for legal professionals, doctors, architects, and other professionals with their own offices.
3. Buy/Sell – As advisors we sell buy/sell life plans all the time. Have you ever talked about Buy Sell DI? The answer is probably NO! Why not cover their disability piece with a specific policy, either lump sum or installments for payout, and know your client is covered?
4. Retirement – What if your client is disabled, will they be saving for retirement? What if you could help them save with a specific policy to help them save for retirement while disabled? Well you can!
These are just four scenarios, and there is much more. Never sold a DI policy before? Well, let us help you, for no charge and allow us the opportunity to grow your DI business and practice revenue with an easy sale and product.
From September 1st to October 15th, any disability policy will get a 20% on the first year commission (For example, you get paid 1,000 in commission, you will get an extra $200 just for submitting and placing DI cases with us). Also, there are some extra benefits:
· For 5,000 in placed premium, 5% retroactive bonus on premium for the year on DI policies placed
· $15,000 in placed premium a total of 10% in additional commission, retroactively for the year.
· DO NOT LEAVE MONEY ION THE TABLE!
Call or email us today for a quote, and get DI going in your practice.