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paycheck-protectionWhy do we put on seatbelts after getting into our cars? Why do we wear helmets when we ride our bicycles? The answer is obvious. We want to protect ourselves from danger.

But there are some dangers that many people ignore, even though the protection is simple and readily available.

Disability is not a rare event. In fact, according to the U.S. Census Bureau, approximately 20 million people between the ages of 16 and 64 have a disability, and these people are far less likely to be employed than their non-disabled peers.  Many disabilities are caused by illness, rather than injury.

Unfortunately, many people don’t understand the risk. The Council for Disability Awareness states that 64 percent of wage earners think their odds of becoming disabled are 2 percent or less — a gross underestimation. This may be why so many people choose to forgo paycheck protection.

But going without paycheck protection leaves people vulnerable to the very real possibility of economic hardship. Likewise, not stressing the importance of paycheck protection to clients leaves insurance agents vulnerable to errors & omissions claims.

Have you ever stopped to wonder what would happen if a client lost several years of income due to a disability, and sued you for not educating him about the risk?

Advisors: It’s up to you to protect yourself and your clients. Share the facts about paycheck protection with your clients and proactively use a waiver of liability form to underscore the importance of this issue.  

If clients decline paycheck protection, ask them to sign the waiver form and keep it in your file. Then, you have proof that you fulfilled your duty to educate the client about this very real risk.

Download our FREE Bare Fact Report now. It includes a Waiver of Liability template that you can put into action this week.