When purchasing an individual disability insurance policy, your clients often prefer the potential benefits to pay out until retirement age. Then what? There are plenty of cases in which claimants outlive their disability payments, especially with strong own-occupation definitions. Here are some insurance sales options to keep your clients protected well into retirement.
Long-Term Care Insurance:
An alarming statistic shows that while 70% of the population will need long-term care, only 14% of people have insurance that will cover the cost. Expenses like nursing homes, home health care, or modifications to your residence to accommodate physical limitations all become more likely as we age. LTCi, paired with a strong IDI contract, will help ensure that your client’s lifestyle is protected for their entire life.
Critical Illness Insurance:
CI pays a lump-sum benefit upon diagnosis of one of the covered illnesses. This includes, but is not limited to: cancer, heart attack/stroke, and motor neuron diseases. Not only is the Critical Illness Insurance contract payable for life, but some types of heart attack/cancer coverage are also available to underwrite on clients up to age 89. This benefit can be used to help offset any potential rise in expenses should a devastating health concern arise.
Retirement Security Rider for Individual Disability Insurance:
A nightmare scenario that we have all heard about is the one of the young doctor who gets a career-ending disability soon after leaving medical school. In this case, his or her income could be protected by an IDI plan and he or she could potentially receive benefits until retirement age. The problem here is that there are plenty of cases in which a disability can prevent you from doing your job while still living a long and active life.
So then what happens? When this person reaches retirement age, his/her benefits will stop. Since this person did not work very before becoming disabled, there probably isn’t much saved for retirement. In this case, DI Retirement Security is recommended. It pays into an Irrevocable Trust should the insured become disabled in his/her working years. These funds are invested on the insured’s behalf and are not available until the end of the benefit period. By combining IDI with Retirement Security, the insured is covered up to and through retirement.
Contact our sales department for more tips on how you can combine products to make sure your clients are fully covered!