Many of your clients are unaware of how important they are. People don’t generally think about what would happen to them if they were to suddenly be unable to perform their jobs for an extended period of time due to injury or illness. Having the conversation about the need for Disability insurance doesn’t have to be awkward. Let’s explore how we can go about discussing this essential protective tool with your clients so that their terrible horrible no good very bad day doesn’t end up ruining their finances.
Bring yourself up to speed: What are the different types of Disability Insurance
There are various types of Disability Insurance available to provide financial protection in the event of an individual becoming disabled and unable to work. We’ll explain each of them here so that you go into the conversation prepared.
Short-Term Disability Insurance: This provides a temporary income for up to two years after the onset of a disability. This type of insurance generally pays out a percentage of the policyholder’s salary on a weekly or monthly basis, depending on the terms and conditions of the policy.
Long-Term Disability Insurance: This pays out benefits for an extended period if you are unable to return to work due to your disability. The length and terms of this coverage depend on the policy and may be anywhere from two years up to retirement age. Long-term disability policies may also include an inflation rider that adjusts payments over time as costs increase.
Group Disability Insurance This is used for providing coverage through group policies offered by employers or associations. As with other types of disability insurance, incoming benefits usually represent a percentage of your income while you are not able to work due to your disability; however, these policies may have lower premiums than individual plans because they leverage pooling across multiple policyholders.
Catastrophic Disability Insurance: This helps protect against income loss due to permanent disabilities that require specialized care or equipment, including paralysis and blindness. It typically pays out benefits that exceed those provided by short-term or long-term disability plans and covers any lost wages from being unable to work due to a disabling illness or injury. Catastrophic insurance also offers funding for home modifications or medical treatments required as a result of the disablement.
Business Overhead Expense (BOE): This can reimburse business owners for certain operating expenses if their ability to run their business is compromised because they become disabled and can no longer run it themselves. These overhead expenses could include rent, utilities, employee salaries, and taxes during the period when they cannot actively manage their business operations due to illness or injury-related disability. BOE insurance generally includes other features such as providing payment for professional services used in transitioning ownership temporarily while they are disabled so that their business can continue uninterrupted during that period.
Don’t hesitate to contact the team at CORE if you have any questions about the ins and outs of these different policies. We are here for you!
Conversation basics: 5 tips to help you talk to your client about Disability Insurance
Here are 5 useful tips about how you can speak to your client about Disability Insurance
- Emphasize the importance of protecting their income: Many people understand the importance of life insurance, but may not realize the importance of protecting their income in case of a disability. By highlighting the potential financial impact of a disability on their ability to pay bills and support their family, you can help them understand the value of disability insurance.
- Tailor your approach to their specific needs: Each client will have unique concerns and priorities, so it’s important to tailor your approach to their specific needs. For example, a client who is self-employed may be particularly concerned about protecting their income, while a client who has a family may be more interested in coverage that includes rehabilitation benefits.
- Explain the different types of disability insurance: There are several different types of disability insurance, such as short-term, long-term, and own-occupation coverage. By explaining the differences and the benefits of each, you can help your clients choose the coverage that is best for them.
- Address any misconceptions or concerns they may have: Some clients may have misconceptions or concerns about disability insurance, such as the cost or the likelihood of making a claim. By addressing these concerns and providing accurate information, you can help them make an informed decision.
- Offer a variety of options: Not every insurance provider offers disability insurance, so it is important to offer a variety of options to your clients so they can choose the one that best fits their needs and budget.
We can help you start the conversation
The team at CORE is committed to helping you sell new lines of business to your clients. Offering them the best available options to keep their lives on track no matter what might happen is at the center of your relationship with them. Helping you succeed is at the center of our relationship with you. Reach out and learn more about what we can do for you!