With the access you have to your clients’ financial plans, comes the responsibility to protect their most valuable asset – the ability to earn a living.
Insurance is available for everything from a car to a cell phone, and it’s vital to remind your clients that those things don’t exist without the funds to facilitate them – which is exactly why income protection is so important.
The following statistics highlight the importance of having that discussion:
- An estimated 48.9 million people, or 19.4% of the non-institutionalized US civilians, have a disability.
- An estimated 24.1 million people have a severe disability.
- An estimated 34.2 million people, or 17.5%, have a functional limitation
Social Security is not a reasonable resource on its own – the average SSDI benefit payment is a mere $1,256 for males and $993 for females per month.
Employer sponsored DI plans only pay 60% of a client’s income – plus, the benefits are taxable with a cap on the maximum benefit. And, less than 5% of disabilities occur as a result from an accident on the job – where worker’s comp would be applicable.
It’s a matter that every advisor should take to heart, especially when most of you know your clients on a personal level.
We have the tools for advisors to start the conversation about Income Protection. Contact your DI Associate today.