Just how valuable is a paycheck? For most families, the paycheck is the source of all good things – food, shelter, cars, shoes and vacations. Without the ability to earn a paycheck, many families would struggle to afford all the things they are so careful to protect with home and auto insurance.
Is paycheck protection a good idea for most people? Paycheck protection – also known as income protection or disability insurance – is an essential component of smart financial planning for anyone who relies on a paycheck to support his or her lifestyle.
Most people understand that super high wage earners such as surgeons, doctors and dentists, need income protection. But, many overlook the fact that regular people need income protection too. Even those who have access to group disability benefits often do not have adequate income protection and could benefit from an additional individual disability insurance policy.
As you consider your prospects and clients, make sure to educate the following four groups about the need for paycheck protection:
- The Sandwich Generation – This group is defined by having to support both children and aging parents. Typically they are already pinched financially and savings and incomes can be exhausted if a disability keeps the breadwinner from earning a paycheck. If you have clients that are in the sandwich generation, explain that disability insurance is of the utmost importance.
- Business Owners and Self-Employed Individuals – Business owners and the self-employed have many advantages. One thing that isn’t an advantage for this group is employer-sponsored group disability coverage. Many don’t restore this lost coverage when the venture into self-employment. Incomes and earning patterns for the self-employed are already unpredictable, which makes protection for their paychecks very vital to their personal and business survival.
- Single Parents and Divorcees – Many newly single parents and divorcees are faced with limited incomes and large expenses, and don’t have a backup plan that protects their earnings. Paychecks are very important to this group because they have single-incomes and no other earner for backup. Being single earners, it is hard for them to create enough savings to provide a cushion for an illness or an injury. Explain to them why and how paycheck protection can help them avoid financial ruin.
- Baby Boomers – This group faces high risk by having the highest income earnings and the highest debt load. Baby boomers could face financial devastation if an injury or illness removes them from the workforce. This group is at an all-time high with 82 million boomers entering middle age. If you have clients who are baby boomers, have them imagine how devastating it would be to work hard all their lives and then lose everything because they didn’t have disability insurance.
If you have clients that fall into one of the above categories, offering paycheck protection coverage isn’t a question – it is a must! Get started today with the DI Power Pack which includes two of our most popular reports – the DI Crash Course and the WPP Sales Script. Also, make sure to download our DI STAT PACK – a great tool for showing clients the odds of becoming disabled.
