Recently, I've had several clients come to me in the midst of their divorce to obtain life insurance, as required in their divorce agreement. This is typically done to ensure that their financial obligations are being fulfilled – but rarely is disability insurance ever recommended.
While disability insurance can be overlooked during a divorce, it is critical that you bring this to your clients' attention. Odds are, people are more likely to become disabled than die before age 65, and a disability can be financially devastating. If your client is required to pay child support or maintenance, ask them what would happen if they became too sick or injured to work. Would they still be obligated to continue these payments? Typically, the answer is "yes," but when asked if they are insuring their income, the answer is typically "no."
If you haven't already, I would recommend building a relationship with a quality family law attorney in your area and bringing this matter to their attention. Most family law attorneys agree that disability insurance plays an important role in divorce planning, and now recommend or require that their clients insure their income as part of their divorce agreement.
People rely heavily on their family law attorneys for advice, and if their attorney recommends or requires them to obtain disability insurance, they will be motivated to do so. This may also lead to a great referral source for future business.
Jamie K. Fleischner is president of Set for Life Insurance, a national brokerage based in Greenwood Village, CO. For more information, please visit www.setforlifeinsurance.com.
For more exclusive disability insurance coverage, visit ASJ's Disability Resource Center.
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