What really changes when we switch to a new calendar year? Nothing – and everything. The start of a new year is the perfect time to reset. For insurance agents and financial advisors, this is an opportunity to meet with your clients, catch up on recent events, and make plans for the months ahead. Make sure these discussions include the importance of paycheck protection.
Taking Stock of the Events of the Last Year
Over the course of year, a lot can change. Often, we’re too caught up in the events as they happen to appreciate exactly how much has changed. The start of a new year is a good time to take a step back and take stock of everything that has happened, as well as the implications that we haven’t necessarily had time to consider properly.
You can guide your clients through this process.
- Have they switched jobs, accepted a promotion, snagged a raise, opened a business, started a side hustle? If so, they may have more income that they need to protect.
- Have they gotten married, had a baby, taken responsibility for another’s care, or gone through a divorce? If so, they may need income protection for themselves and the people who depend on them.
- Have they purchased a house or taken out any other loans, such as car loans or student loans? If so, a disability could make it difficult to pay off the debt, so disability insurance is worth considering.
- Have they experienced health challenges? If so, they may be more aware of the importance of disability insurance. Although it’s easier to secure coverage when you have a clean bill of health, it is possible to find coverage with pre-existing conditions.
Replacing Bad Habits with Healthy Ones
When we’re busy, it’s easy to develop bad habits. We go to bed too late, exercise too little, eat too much. We may also put off things we know we should do, like finally purchasing disability insurance. When January 1 rolls around, we make resolutions and push ourselves to improve.
Some bad habits may be outside your area of expertise, but you can help your clients break financial bad habits.
- Do they have the insurance they need? Many young workers put off buying disability insurance because they think they’re too young and healthy to worry about it – but that’s exactly when you want to lock in good rates. Time passes quickly, and youth doesn’t last. If your clients have put off buying coverage, now is the time to stop procrastinating.
- Are they guilty of lifestyle creep? Things like streaming subscriptions, expensive coffees, and delivery can wreak havoc on a person’s budget. Lifestyle creep occurs when we spend more as we earn more, getting used to extra luxuries instead of putting our money to good use so we can build financial security. If your clients are falling into bad financial habits that threaten their long-term goals, it’s time to think about which costs can be cut and how money can be saved or invested. Purchasing disability insurance is another good use of extra income because it helps protect that income.
Making Plans for the Months and Years Ahead
The new year is a time of both beginnings and endings. In addition to looking back at the year that has passed, we can look forward to the months and years that lie ahead.
This is a good time to talk to your clients about their goals.
- What are their short-term goals? Are they planning to make any big career moves, family changes or purchases in the coming months? If so, how would a sudden loss of income affect their plans?
- What are their long-term goals? Are they working on starting a family, paying for education or preparing for retirement? If they lost their income due to disability, would they be able to recover and get back on track toward these goals?
Taking a Moment to Reset
Time never stops, but we can take a moment to pause and reflect. The new year is an opportunity to press reset on bad habits, correct course if we have fallen off track, and forge ahead with a renewed sense of purpose.
Are you meeting with your clients to catch up on their needs? The Disability Insurance Needs Analysis is the easy way to make sure they have the income protection they require. Download your free copy.