paycheck-protection-in-a-volatile-economyHow many of your clients depend on their paycheck? The answer is probably most of them, possibly all of them. Unless your clients are independently wealthy, they depend on a steady paycheck.

During the pandemic, many people have learned just how bad things can get when that income stops. Those who still have jobs are lucky—but they’re not invulnerable.

Savings Have Been Drained

We all know that it’s smart to save for a rainy day. Whether or not we actually have the funds or discipline to do so is another issue. And even if we do save, we might not be able to save enough, especially if we face multiple crises in a row.

CNBC reports that 61% of Americans were expected to run through their emergency savings by the end of 2020. People are living paycheck to paycheck – assuming they still have a paycheck. So how would they deal with the financial impact of a disability on top of everything else?

Most People Aren’t Prepared

According to the Social Security Administration, more than one out of four of today’s 20-year-olds will experience disability before reaching retirement age.

But the U.S. Bureau of Labor Statistics says that only 34% of private industry workers had access to employer-provided long-term disability insurance in 2018. This is a slight increase from 2008, when only 32% of private industry workers had access to employer-provided long-term disability insurance, but it still leaves about one in three employees without any access to the coverage that many of them will need at some point.

Talk to Your Clients About Disability Insurance

A paycheck is often a person’s most valuable asset. It’s also often the most overlooked asset. People take their paychecks for granted when, in reality, there’s no guarantee that this income will continue.

This is why people need paycheck protection.

Given the odds in today’s volatile economic climate, failing to protect your clients’ income with paycheck protection could be one of the biggest mistakes you ever make. In fact, it could cost them everything they’ve worked for. Why risk it? Talk with every client about his or her paycheck protection options today, provide the disability insurance quotes they need, and protect their livelihood for tomorrow.

  • If your clients don’t have any coverage, ask them how they would manage if their paychecks suddenly stopped.
  • If your clients have employer-provided coverage, they may still be interested in an individual policy. Ask them if they would be able to survive on the reduced income provided by their employer-based policy.

The COVID-19 pandemic has been an eye-opener. As a nation, we’ve learned that income sources and job security can change in an instant. We’ve all witnessed vulnerability, and as a result, prospects may be more receptive to having a conversation about paycheck protection. Seize the moment!

Need an educational piece to share with clients? Download Four Compelling Reasons for Paycheck Protection now.

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