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Products  Disability Insurance (DI) Establishing the Need
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More Establishing the Need Resources
Q. How great is the risk of disability?
A. The risk of disability is significant. Every year, one person in 105 dies; one home in 88 catches fire; one car in 70 has an accident; and one person in eight suffers disability. STD and LTD benefits only apply to base compensation and are fully taxed, leaving most people seriously underinsured. DI fills the gap and can protect mortgage payments. According to the US Savings and Loan Association, nearly half (48%) of defaults occur because the bread winner becomes disabled and has inadequate disability income insurance. Less than three percent of all mortgage defaults occur because the bread winner dies with inadequate life insurance.
Having trouble explaining the cost of disability insurance to your clients?
We think simple is best. Try this approach:
"Which job would you want?" Offer your client one of two options (A or B)
| Job Offer |
Job A |
Job B |
| If you are able to work full-time |
$100,000/year |
$98,000/year |
Unable to work due
to accident or illness |
$0/year |
$60,000/year |
Most people want Job B which includes disability insurance covering 60 percent of income, tax-free and cost 2 to 4 percent of income. |
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Additional Resources for Establishing the Need
The Council for Disability Awareness (CDA) is a non-profit group formed in 2005 to help the American workforce become aware of the growing instances of disability and its financial consequences.
The CDA engages in communications, research and education to provide information and helpful resources to wage earners, their families, the media, employers and others who are concerned about disability and the impact it can have on wage earners and their families.
The Council for Disability Awareness is an excellent resource for gaining more information you can relate to your clients. You can visit the Council for Disability Awareness website at http://disabilitycanhappen.org.
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