di done right individual disability insurance

What it is

An individual disability insurance policy pays a percentage of your client’s salary, according to policy guidelines, if he or she is disabled. Disability insurance policies can be customized by:

  • The amount of coverage (The percentage of your income that the policy will pay)
  • The length of coverage (How long benefits will continue)
  • The elimination (waiting) period (How soon benefits will start)
  • The disabling definition (Such as own occ or modified own occ)
  • The renewal provisions (Such as non-cancelable or guaranteed renewable)
  • Riders (The bells & whistles)

This coverage is essential for clients who do not have long term disability (LTD) insurance at work. It is also supplemental for those who have LTD at work because employer-provided plans are very limited.

How to explain it

“Stop and think. How long could you sustain your present lifestyle if your paycheck stopped? If you’re like most Americans, your answer is probably six months or less. So why haven’t you secured paycheck protection? Most Americans insure their homes and their vehicles but forget to insure their paychecks. Yet, without a paycheck, homes, vehicles and other fun things become unaffordable. Likewise, many Americans remember to buy life insurance to provide for their loved ones in the event of death, but they forget to secure paycheck protection to provide for their loved ones in the event of disability. These are critical financial planning mistakes. Fortunately, you can still qualify for income protection. Let’s get some options for you.”

When to offer it

Any prospect who earns more than $50,000 annually and who relies on a paycheck, should have an individual disability insurance policy. This includes:

  • Anyone in their working years – from early 20s to nearing retirement
  • White, blue and gray color workers as well as business owners and professionals like doctors and dentists
  • High-risk, previously declined and those with pre-existing conditions

We can help them all!