If you have sold or solicited disability insurance in the past, chances are you have heard clients tell you their income
is already protected should they become disabled. The best clients to speak with regarding income protection are employed, so do not be surprised or discouraged if someone says, “I already have coverage through my employer.” Be prepared and keep the conversation going by saying “I thought you might, so let’s see if it’s enough to cover your expenses if you become too sick or hurt to work”.
Group long-term disability through an employer is a good start, but it may leave your client with a substantial income gap. Group disability coverage generally covers about 60% of income, before taxes. By supplementing their group coverage with individual coverage, your client can protect even more of their income, which makes a huge difference when it comes to covering daily living expenses. Additionally, individual disability insurance stays with them even
if they change employers, so your clients know they are covered for their entire working career.
Adding individual coverage to your client’s existing plan puts them in control. With group and individual disability coverage working together, they won’t have to make tough decisions about cutting back on their lifestyle. Supplemental individual coverage has the potential to provide value in several areas:
• Provides the client with tax-free benefit payments
• Covers the client’s bonus/incentive pay
• Stays with the client even if they change jobs
• Cannot be cancelled unless premium payments cease
• Guarantees that the cost of coverage will never increase
• Can be designed to meet the client’s specific budget and needs
• Potential discounts if multiple employees purchase coverage
Since the best prospects are employed high income earners, chances are they already have some sort of disability coverage in place. It is important for you to recognize this and speak to the added value that supplemental coverage can provide.
Advisors who possess this knowledge will have the most success in the disability insurance marketplace.
— Derek Wakefield, LTC and DI Specialist