Everyone who tries to sell income protection has clients like Susan.
Susan has been working for the same employers for years, and she’s satisfied with her employer’s group disability insurance program. Why should she worry about protecting her income when there are so many vacations to to the Bahamas to take and so many cups of gourmet coffee to drink?
The best way to get through to Susan is to show her the math.
Assume her employer’s group long-term disability (LTD) plan pays a benefit equal to 60% of income up to a maximum of $5,000.
“Mary,” the woman at the front desk, makes $30,000 a year.
If Mary becomes disabled, she gets $18,000 per year in taxable benefits. That would take her to around $15,000 per year –50% of her income.
Susan, the executive vice president of marketing, makes $200,000 per year.