In this era of economic uncertainty and market volatility, financial planning clients need a multipronged approach to financial planning. And when it comes time to develop that strategy, make sure they don’t overlook disability insurance, otherwise known as paycheck protection. It’s critical because a serious illness or injury could financially devastate most clients.

Your 3-Step Action Plan for Paycheck Protection: 

  1. Review Income and Expenses. Encourage clients to get a clear picture of where money is coming from and where it’s going. Determine exactly how long the client could maintain his or her lifestyle if the paycheck stopped.  This is an eye-opening exercise! The income gap diagram contained in our Wealth Preservation Plan Sales Script helps you calculate how much a client will receive after taxes with an employer-provided disability plan. In most cases, this nominal paycheck protection is not enough! 
  2. Adjust expenses and make paycheck protection a top priority. If the income/expense review reveals that a disability could turn the client’s financial picture upside down, look for ways to reduce spending and secure protection. Make sure clients understand that the paycheck is the MOST IMPORTANT asset.  Without a paycheck, all other assets (like cars and houses) are quickly lost. If a client seems surprised by the cost of paycheck protection, the Wealth Preservation Plan script helps overcome objections. The worksheet is especially helpful for demonstrating that disability insurance is actually more affordable than homeowners and automobile insurance! 
  3. Add paycheck protection to every client’s protection suite. Personal and financial circumstances are constantly changing, but the risks of becoming disabled due to injury or illness are always present. Disability insurance should be a part of every client’s financial planning strategy – unless they have large sources of passive income (like rental properties) or they are independently wealthy and not reliant on a paycheck. If a client declines paycheck protection, make sure that he or she signs a Waiver of Liability Form to protect your interests. When disabled clients start losing everything they have, the financial planner or insurance agent is an easy scapegoat. Make sure you have proof that you offered a disability insurance quote.

By including paycheck protection in every client’s financial plan, you protect yourself from liability and your clients from financial devastation.

If you haven’t already done so, download our most popular disability insurance sales script today. The Waiver of Liability Form and the Income Gap Diagram are both included in this phenomenal sales tool.


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