Disability Income Insurance
If your clients are like most people, they depend on their paycheck to pay their monthly living expenses.
But what would happen if they had a disabling accident or illness and could not work?
How would they...
- replace their income?
- make their monthly rent or mortgage loan payments?
- buy their groceries?
- make their car payments?
- handle the rest of their day-to-day living expenses?
- provide for their children's education?
- save for retirement?
Most people don't realize the risk of becoming disabled, permanently or temporarily, at some point in their lives. But the reality is that at age 40, their chances of becoming disabled for 90 days or more prior to age 65 is 43%. (Source: 2004 Field Guide, National Underwriter)
When evaluating the chances of disability, they should carefully consider sources of available funds:
My employer covers me: How long would the business continue to pay them? How much would it pay them? When would their employer have to hire a replacement? Could the business afford to pay both?
I'll use my savings: If they saved 10% of their income each year, one year of total disability could wipe out 10 years of savings. Can they afford that?
I'll get a loan: Without an income, who will lend them money?
My spouse works: Can their spouse earn enough and be partner, parent, private nurse, and employee -all at the same time?
I'll sell my investments: Will a sale under forced conditions bring a true value? What will their value be at the time they are disabled?
I can collect Social Security: they cannot collect benefits until the end of the fifth full calendar month of total disability and only if it is expected to last 12 months or more. What will they do if their disability doesn't meet those requirements? Even if it does, can they wait six months for payment?
I'll count on family, friends, or charity: Would these sources have funds for them to use? Do they want to depend on them?
Make a plan for income replacement
Our Disability Income policies can help keep them financially stable during difficult times by paying a monthly income, directly to them, when they are sick or hurt and unable to work
