Are you having conversations with your clients about the importance of income protection?
The need for advisors to provide income protection advice to clients is crucial, now more than ever.
The current economic impacts of the global pandemic have highlighted that many individuals are living paycheck to paycheck. The pandemic has also shed light on how an unpredictable situation beyond a person’s control can affect income and financial security, providing an opportunity for advisors to offer appropriate solutions to meet their needs.
During this time, advisors have a critical opening to be speaking to clients, not only about the impacts of the pandemic but about how an unexpected event can damage future financial stability.
Many people aren’t aware of the long-term income protection that individual disability insurance (IDI) can provide should they become unable to work due to a disability. Just as life insurance pays beneficiaries for a loss, IDI can pay a monthly benefit to replace income for an individual that is unable to work due to a serious illness or injury. By sharing a few key considerations, advisors can easily emphasize how IDI can protect income and equip clients with a layer of financial security to help them face the unexpected with confidence.
Why IDI Is Important
Everyone has expenses. Most people haven’t or don’t want to consider how they would make ends meet in light of a disabling event, yet there are monthly costs almost everyone must cover, such as a mortgage, car payment, student loan debt and other recurring expenses. Should a client become unable to work, their expenses will likely continue and compound without a long-term solution for paying them.
During a disabling event, the stress of keeping up with paying bills is the last thing a person needs to deal with and think about. This stress can even further impact the effects of the disabling condition and impede recovery. Clients are working hard to bring in income that supports their families and lifestyle. Helping them put a plan in place to cover lost income if they experience a disability can provide a sound foundation of future stability for them and their families.