If you’re selling paycheck protection insurance, you have a big audience. Anyone who depends on a paycheck can benefit from disability insurance. However, some people need income protection even more than others.
Just How Valuable Is Paycheck Protection Insurance?
To determine the value of paycheck protection insurance is, you need to look at the value of a person’s 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.
So ask your prospects – what does their paycheck mean to them? If they suddenly lost the ability to work, how would the loss of income impact their family?
Is Disability Insurance a Good Deal 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:
1. The Sandwich Generation
This group is “sandwiched” between children and aging parents who depend on them for financial support. As a result, people in the sandwich generation are under immense financial pressure. If they lose their income, many people will suffer.
If you have clients who are in the sandwich generation, ask them how their children and parents would be impacted if they could no longer work. Also point out that, according to the Social Security Administration, working aged individuals are more likely to experience disability than death. Many people in this group already have life insurance, but to protect against an even bigger threat to their financial stability, they need disability insurance.
2. Business Owners and Self-Employed Individuals
Self-employed workers include small business owners and independent contractors. These workers often enjoy the flexibility they need to grow their careers, but they have to do this without many of the safety nets that traditional employees have. Notably, self-employed workers don’t have access to group disability insurance and other employee benefits.
If you have clients who are self-employed, ask them what they would do if they could no longer work due to illness or injury. For clients who own small businesses or sold proprietorships, also ask them about what would happen to the business they’ve worked hard to build. Products like individual disability insurance and business overhead expense insurance can provide protection.
3. Single Parents and Divorcees
Many families depend on two incomes, but single parents are divorcees have to make do with one income. As a result, they may not be able to put away as much into an emergency savings. If an injury or illness prevents them from working, they may not have much of a financial cushion, and they don’t have a spouse who can pick up more hours to make up for the loss of income.
If you have clients who are single parents, ask them how they would continue to provide for their children if they could no longer work. This is another good time to point out that working aged people have a higher risk of disability than death. If your clients have decided that life insurance is worth the premium, why not disability insurance?
4. Older Workers
Older workers are often catching up on retirement savings. If a disability forces them out the workforce before they’re ready, they may never be able to create the retirement they’ve been dreaming of.
If you have clients who are older workers, ask them what they’re retirement would be like if an illness or injury forced them to stop working early. They may be interested in disability insurance with a retirement savings rider.
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.
