Disability insurance is a type of life insurance coverage that can often go overlooked. Instead of insuring your home, car or health, disability insurance is designed to protect your paycheck. With that in mind, a disability policy is something you’ll want your clients to consider so they can make sure their bills are still getting paid if they experience a serious illness or injury that prevents them from working.
There is a myth that disability only applies to a certain group of people; in reality, there are many instances where disability coverage can be used to protect your client’s income. Here we’ll go over five common questions about disability insurance that will help demystify this type of coverage for you and your clients .
For most types of life insurance, this question is first on your client’s mind. Mortgage protection is for your clients that own a home. Final expense insurance is for clients who are thinking about their end-of-life expenses. Disability insurance, however, should be considered by anyone who is working and generating an income.
The truth behind disability insurance is that no one is certain what their future holds. Anyone can experience an accident that leaves them unable to work or a diagnosis that keeps them out of the office for months at a time. With that in mind, anyone who is working to make a living can benefit from this coverage when the worst happens. Disability insurance protects your client’s paycheck and ability to cover their daily expenses.
Disability insurance covers a wide range of expenses. This protection is designed to ensure all bills are paid if something happens to prevent your client from working. To that end, this type of insurance can protect rent or mortgage payments, car payments and small things like groceries.
Whatever your client is spending money on each day will be covered by their disability insurance. This is the real purpose of disability coverage: protecting your client’s daily life from any financial hardships. This insurance will help them stay on top of their bills, but it can also help them keep whatever lifestyle they had before they became unable to work.
In terms of what this insurance covers, it’s also a wide range. Disability insurance can cover short-term injuries like a broken arm and more long-term illnesses like cancer. For that reason, this coverage is meant to protect anyone that could face an injury from an accident or sudden illness, which makes this coverage applicable for everyone. It’s important to emphasize this point with your clients. Anyone can benefit from disability insurance since everyone is prone to the unknown.
The next big question with disability insurance is whether to choose a long-term or short-term policy. These are the two types of disability insurance and as you can guess, they’re influenced by the amount of time the policy will be in force. Depending on your client’s situation and lifestyle, they will likely benefit from one over another.
Short-term disability has a maximum period of coverage of two years, whereas long-term disability will cover your client for decades if necessary. Most employers offer a form of short-term disability insurance that your clients will already have access to, but that may not be enough to cover any serious illnesses or injuries.
For example, if your client has hobbies that might increase their chance of an injury, like skiing or rock climbing, then short-term disability might be a good fit for them. However, if you have older clients who are worried about their health, long-term disability insurance will be the best fit for them. Making this distinction will go a long way in making sure your clients have the right coverage that will give them the best-fit protection.
There are a lot of variables involved with the cost of disability insurance. Long-term disability is the more expensive coverage, but there are other factors including age and health that will influence monthly payments. Still, disability insurance is relatively cheap when compared to other types of coverage . On average, the cost of your client’s coverage should only be between one to four percent of their annual income, which is a small price to pay to protect their income.
Your clients can always decide on an amount that seems affordable month to month, and if they decide that the benefit wouldn’t be enough to cover them, they can always increase their policy. Likewise, if your clients see an increase in income that is not reflected by their coverage, they can always opt for a future purchase option . With this option, your clients can increase the amount of coverage as their income increases.
The right time to get coverage is always as soon as possible. Not only are your clients always going to be facing the unknown in terms of injury or illness, but the younger they are, the lower the price of coverage. Regardless of your client's age or situation, securing disability insurance is always cheaper and easier the earlier it’s done.
According to the Social Security Administration , one in four 20-year-olds will experience some form of disability before they reach retirement. No one is immune from accidents, and while that might be a startling statistic, it’s crucial that your clients understand the importance of securing disability coverage. To keep prices low, it’s in your client’s best interest to consider disability insurance before they’re older and the prices are too high, or they don’t qualify altogether.
At Symmetry, we believe in giving our agents the tools and technology they need to help them make the biggest difference in their clients’ lives. That means online support, quality leads and the education to keep clients informed and aware of the insurance solutions that will help them the most. With disability insurance, you can help your clients protect their income and their lifestyle.
As a Symmetry agent, you will also have access to high-quality life insurance, disability income insurance, critical illness insurance, and annuity products from more than 30 well-known insurance companies. This gives you the flexibility and reach you need to tailor plans to meet clients' individual coverage needs.
To learn more about how to begin a fulfilling career as a life insurance agent, contact us today .