5.82% Investment Return “Equivalent” Guaranteed

Some clients may understand the need for Disability Income Insurance, but still resist purchasing because they don’t want to “lose” those premium dollars if they never use the coverage.

For many, the purpose of buying Disability Insurance (DI) is so they can sleep at night knowing if they get sick or hurt one day everything will be okay financially.

But what if nothing serious happens to your client during their working lifetime that prevents them from working?  They have paid premiums to a policy for years that never was used.  Having some peace of mind may have a cost, but there is a way to mitigate that cost.

There are income protection plans available with return of premium options that pay back the premium to your clients (income tax free).

This is how it works:
  • A 39-year-old male Real Estate Agent earning $110,000 qualified for an Income Protection Plan that would pay him $5,000 each month (tax free) if he got sick or hurt and could not work.
  • The premium for the coverage is $119.73 per month.
  • If he reaches age 67, his total premium paid would be $38,094.
  • If he adds the Return of Premium Advantage the additional cost would be $79.02 per month for a total premium of $198.75 per month.
  • At age 67 with no claims being paid, the Real Estate Agent will receive a check for a tax-free amount of $63,236 – which is the investment return equivalent of 5.82% guaranteed* on the additional $79.02 monthly premium.

This “money back DI” solution can be offered on a long-term or even short-term policies.  One option of the return of premium rider provides a lump sum return of a specified percentage of premium paid every 10 years (80 percent or 50 percent) less any benefit you receive.

Reach out to your clients to find out if they have been reluctant to purchase individual DI coverage because they feel they would be throwing money at a policy they will never use.  Although policy premiums will be higher with the return of premium option, emphasize the “value” of being able to use the returned amount any way your client wishes – perhaps a lump sum payment on the mortgage or add to their retirement fund.

Contact your Disability Income Specialist with any questions or if you would like to see a proposal for yourself.

*The IRR will vary subject to clients age, occupation, and benefit amount.

DI Case Study On An NFL Running Back

As the 2021-2022 football season is ready to start at full throttle, now is the perfect time to share a case study for an NFL running back we worked on.

In this case, the NFL Running Back being drafted in the second round of the NFL draft and completing three successful seasons, the player was approaching free agency and his biggest paycheck to date.  To protect himself and his future income, he needed an insurance policy in place before he hit the field in the fall.


Due to the physical nature of the sport, it was made apparent that if the player suffered an injury or illness resulting in a permanent total disability before he signed a new contract, his future income would be lost.  The first policy placed covered $5 million in benefit, but his recent stellar performance moved the advisor on the case to request an increase in disability benefit at the time of renewal.


Our Disability Income Support Team worked with the player’s Agent and Insurance Advisor to develop a $10 million permanent total disability policy, which would soften the blow in the event the player became permanently totally disabled before his next big contract was signed.


This tax-free benefit gave the player peace of mind – if he suffered a serious injury or illness while playing football, his future contract and lifestyle would be protected.

The premium for this case was roughly $90,000 plus taxes and fees.

Even though NFL super-stars need specialized coverage due to the nature of their sport, it’s important to remember that high-earning individuals have a gap in disability income protection as well.

Contact your DI Sales & Marketing Specialist for more information on unique DI solutions.

Affordable Income Protection For Any Budget

The need for an income protection plan is not limited to the Executive, Doctor or Attorney earning in excess of $150,000.  According to the U.S. Census Bureau the average annual income in the United States was $51,017 from all occupations.  Average everyday working people (Middle America) are just as dependent on their income to provide for themselves and their families as anyone in the higher tax brackets.

The opportunities are endless – reach out to your clients, friends, families, fellow club members and co-workers.  Ask if they have an income protection plan in place should they get sick or hurt.  Offer them an affordable plan to protect them and their family.

Of the advisors I speak with every day, Life Insurance Agents, Health Insurance Agents, and P&C Brokers – 92% are not talking to their clients about income protection and how affordable it can be.

You can differentiate yourself as an advisor just by offering valuable coverage to your clients that likely no one has ever spoken with them about.

Did you know?

The premium for a 45-year-old Office Clerk for $2,500 monthly benefit is only $45.96 per month?  There are affordable plans even for part time Dental Hygienists and Registered Nurses working as little as 24 hours per week.

Talk about opportunities, there are over 192,800 Dental Hygienists in the US earning an average annual income of $70,000 http://www.bls.gov/ooh/healthcare/dental-hygienists.htm) and 2.7 million Registered Nurses earning approx the same income. http://www.bls.gov/oes/2011/may/oes291111.htm

Never let premium be the reason your client’s income is left unprotected from an injury or sickness.  The new affordable DI plans can fit most any budget.  The premium for a 35-year-old Dental Hygienist for $2,500 monthly benefit is only $45.08 per month.

You are at the frontline to educate your clientele about the vital need for income protection in the event of an injury or sickness.  Your clients want to buy Income Protection, but they need someone they know and trust to ask them about it.

Discuss income protection insurance with all your prospects and clients, because they may not understand the risk of losing their income should an injury or an illness strike.

For marketing tools and sales ideas, contact your Disability Income Sales Expert today.

DI Marketing & Sales Tips For Attracting Young Professionals

The millennial generation (also known as Generation Y) is defined as people ages 18-35.  Today they represent over 25% of the US population.

Many of them entered the workforce during a time of economic uncertainty and are more risk averse and mindful of their money than previous generations.  They face student loan debt as they start their professional careers post-college.

The young professional market is largely untapped.  With their future earning potential and conservative approach to finances, they make good candidates for income protection and other financial products.

Below you will find unique sales and marketing tips to help you generate significant sales and grow your practice in 2020:
  • Emphasize the portability and convenience of having personal income protection coverage.  It’s estimated that millennials will change jobs every three years.  Explain how they are in control to make decisions about their coverage.  Plus, individual disability coverage goes with them – no matter their location or occupation.
  • Ask your existing client base about their children and their financial needs.
  • Make sure you become part of their financial conversation by asking pertinent questions.  Millennials rely on recommendations and their parents are great sources for information.
  • Use social media and videos to communicate the need for income protection.  It’s important to build a presence on websites that millennials frequent.
  • Seek out volunteer opportunities in your community.  Young professionals are looking for ways to connect with their local community and businesses.  Volunteering is a great way to connect and make a difference.
  • Focus on the affordability of income protection.  In many cases, the cost for a 28-year-old can be less than $40 a month.  Yet it protects people’s greatest asset – their income.  Explain that monthly premiums are often less than they spend on other expenses, such as a cell phone or gym membership.
Here’s where to find young professionals:
  • Large employers that boast flexible work schedules and local community involvement.
  • Young professional groups.  TIP: Start with a YNPN (Young Nonprofit Professionals NetworkTM) local chapter.  Find a listing of local chapters at www.ynpn.org
  • Local chamber of commerce events.  TIP: Many chambers now have Young Professional sub-committees.
  • Graduate programs for Select Professionals, such as engineers, architects, pharmacists and attorneys, etc.  Find schools near you at www.50states.com.

Get started working with young professionals today.  There is a large percentage of millennials that want to purchase income protection but do not know where to buy it.  They want to turn to someone they know and can trust to ask questions and to help make a meaningful decision.  They will not go to the internet to purchase their Disability Income Protection.

Ask your dedicated Disability Income Sales Manager about our brochures and marketing pieces you can use to help attract millennial clients.

Critical Illness Insurance: Preparing To Bridge The Gap

Many Americans are living without ample savings – and a lot are living paycheck to paycheck.  When these families are struck with an unexpected illness such as a heart attack, stroke, or cancer, it can cause a serious financial hardship… even if they have health insurance.

The average annual income in the United States is $50,000 – and most health insurance policies carry at least a $5,000 or $10,000 out of pocket max that will easily be reached when suffering from a critical illness.

On top of that, any one of these illnesses will undoubtedly result in an absence from work for an extended period of time – causing the loss of valuable income at a time when they are experiencing increased expenses.

Consider This

This combination of out-of-pocket healthcare costs, loss of income, and mounting household expenses come together to form ‘The Perfect Storm’, which too often leads to a bankruptcy.

Bankruptcies resulting from unpaid medical bills will affect nearly 2 million people this year-making health care the No. 1 cause of such filings, and outpacing bankruptcies due to credit-card bills or unpaid mortgages, according to new data.

Having health insurance doesn’t buffer consumers against financial hardship.

Most advisors sell life insurance to protect their clients should the bread winner not make it home from work one day.  But how can we protect our clients against financial catastrophe if the heart attack, stroke, or serious illness doesn’t amount in a premature death?

Critical Illness Insurance pays a tax free lump sum payment on diagnosis of any one of a list of serious illnesses – including cancer, heart attacks, or stroke.

Claims statistics suggest we are five times more likely to suffer from one of these issues, than we are to die before we reach age 65.  You don’t want to get a call one day, find out something has happened to a client, and regret having never discussed the opportunity to purchase a Disability Income or Critical Illness Plan with them – have the discussion with each of your clients as soon as possible.

Our dedicated DI Sales Reps are well versed on the features and benefits of Critical Illness Coverage – contact us for assistance today.