It’s a fact of life that everyone dies. Given this, it makes sense to prepare for the inevitable by purchasing life insurance. But here’s the thing that a lot of advisors seem to forget – death isn’t the only calamity that people face. Illness and injury can turn a person’s life upside down without actually ending it, yet many advisors who sell life insurance skip disability insurance. If you’re making this mistake, you could be leaving your clients exposed.
The Odds of Death and Disability
In the long run, the odds of death are 100%, but most people live a long life before death occurs. In the U.S., the average life expectancy is 78.7 years, according to the CDC.
This means that most people can expect to live well into their retirement years. The odds that they’ll do so without becoming disabled are much lower. The Social Security Administration says that a 20-year-old has more than a one in four chance of becoming disabled before reaching retirement age but only a one in nine chance of dying before retirement age.
The odds that someone will become disabled but not die may be increasing as technology and medicine improve. For example, the American Cancer Society says that the U.S. cancer death rate has dropped 27% in the last 25 years. Some forms of cancer have incredibly high survival rates. For example, according to Cancer.Net, the five-year survival rate for non-metastatic invasive breast cancer is 91%. The National Cancer Institute estimates that there are nearly 17 million cancer survivors living in the U.S., and this figure is expected to increase to 22.2 million by 2030.
It’s great that so many people are surviving cancer. Nevertheless, the consequences of the illness cannot be ignored. A cancer diagnosis is devastating, and many people have to leave work in order to go through treatment.
Injuries may also result in significant disability and missed work but not death. According to the NHTSA, for every person who dies in a car crash, 18 people are hospitalized and 400 suffer injuries that require medical attention.
The Need for Disability Insurance
We are living in a wonderful time when we are more likely to survive cancer, strokes, heart attacks, pregnancy and severe injuries than ever before. At the same time, modern medicine cannot provide an instant fix. It can take months or years to recover from an injury or illness, and some people may never be able to return to their old lives. In the meantime, wages are lost, and bills pile up.
The case for disability insurance is clear. So why isn’t selling disability insurance automatic for advisors, the same way selling life insurance is?
The truth is that many advisors are uncomfortable selling disability insurance. Maybe you are, too. You might think that coverage is too complicated, and it’s outside of your area of expertise.
Don’t let this prevent you preparing your clients to live a financially-secure life, even if they are unable to work. They’re counting on you to provide them with sound financial advice, after all.
Fortunately, with our Powered by DIS program, you can feel comfortable offering clients disability insurance. You’ll get the support you need to sell disability insurance with confidence. This service is absolutely free, and we will provide any level of support you desire. With DIS by your side, you have every tool you need to prepare your clients to LIVE.
