Presented by Michelle Daharsh When having a conversation about disability income protection with your clients, you will probably come across some common reasons stated as to why they don’t need it or want it. Most times when your client is asked about “disability insurance” they think it’s about getting hurt or injured. A better way to get their attention is asking them how long they could go without a paycheck. Below are four common reasons that your clients aren’t buying “paycheck protection” insurance – or Disability Income Insurance:

1. It won’t happen to me because I plan to stay healthy. We all think and hope this. However, one in four 20 year olds will become disabled by the time they are age 67. (Social Security Administration, Fact Sheet, February 2013). How many of your clients will possibly fall into this statistic? In fact, illnesses account for approximately 90% of disability insurance claims…not accidents.
2. Social Security will take care of me, right? It may, but will your clients qualify for benefits? How long will it take to get approved and how much will they receive? About 45% of individuals that apply for Social Security disability benefits are initially denied, and those who are approved receive an average of $1100 a month. Plus, it’s a process that can potentially take up to two years for approval before benefits begin. How long can your client wait for a paycheck and would this average benefit be enough?
3. I have coverage through my Employer. Many times through employer plans, the benefits are taxed, policies are not portable, and they have maximum limits on benefits offered. This is a great opportunity where you can provide education on their actual benefits and truly uncover the additional income protection that you could provide them with an individual policy.
4. I can rely on my savings. They probably can for a limited time, but have your clients really looked at their day-to-day living expenses and priorities and figured out how long their savings would last? About half of working Americans report that they couldn’t make it 30 days without a paycheck. Do your clients fit in this category? Can they make it a month, three months, a year – and if they have savings, is it really enough to cover them for an extended period of time.

Don’t let these mistakes cause a financial burden for your clients. Sit down with them and have the conversation about their need of “paycheck protection”, and how it can provide the protection needed for them and their family.