Clients purchase insurance to protect themselves and their families from life’s unknowns.
With Disability Insurance, clients can sleep through the night knowing that if they were to wake up sick or hurt – financially, they’d be okay.
But what happens when your clients remain healthy throughout the entirety of their working years? Clients would have been paying premiums for years just for peace of mind – which, as you well know, is not always an easy ‘return on investment’ to sell.
Income Protection Plans are available with a 100% return of premiums paid. Meaning, that if your clients didn’t use it, they wouldn’t lose it – they could have all of their premiums returned, income-tax free.
Here’s How It Works
A 39 year old male, private school Principal earning $80,000 annually qualifies for a plan that would pay him $3,800 monthly (tax-free) in event of an injury or illness. His monthly premium is $71.46 per month, with his total premium paid reaching $22,738 at age 67.
- If he does not place a claim throughout the life of his policy, the $22,738 would have paid for his protection, and otherwise be lost.
- However, if he adds the Return Of Premium Advantage to his plan – his monthly premium would be $118.63 – BUT he would receive a check for a tax-free amount of $37,745 at the end of his policy, assuming no claims placed.
That is the investment return equivalent of 5.82% Guaranteed* for an additional $47.17 on his monthly premium.
And there’s more – even if your clients are disabled for a short period and only temporarily receive benefits, all of their premiums will be returned, less any benefits they receive.
At age 67, your clients can also select a refund option that works best for their financial plans. Their returns can be taken in cash, left with the carrier to accrue interest, paid in installments or annuitized, or even paid out over their lifetime.
If you have clients who are reluctant to purchase Individual DI coverage because they are concerned they will be paying for something they will never use – now is the time to reach out. Offer them the valuable coverage they need and peace of mind they want. Contact your DI Sales Rep for more information.
*the IRR will vary subject to clients age, occupation and benefit amount, and is not available in all states. The ROP is not an investment and should not be compared to any specific investments, securities or other assets with value.