Hi…Jeff Berson here. I have worked in and around the insurance world for almost 40 years. In that time I have worked with some of the best minds in the financial industry. With this blog I hope to bring some of the best concepts, the brightest ideas and the latest information to help you succeed. It may not always be my personal idea but it will surely be "Bersonal"
Here are 5 common objections about income protection to help you talk about disability income insurance with your clients.
“We’ll use our savings.”
Relying on savings is a good approach for the short term. However, in some cases, depending on how long a disability lasts, savings could be wiped out in a few weeks or a few months. On top of your regular monthly expenses, there could also be medical bills. Disability insurance offers an affordable way to provide a source of income you can count on until you can work again.
“I have disability through work.”
Coverage through work is a great start. Typically group coverage pays 60% of your income, but don’t forget that money may be taxable. Your group policy and an individual disability policy together may provide you a more adequate monthly income amount to help you cover your bills. Let’s get details on your work coverage – when it would start, how much it would pay and for how long – and make sure you have the coverage you need.
“I’ll apply for Social Security disability.”
This may be an option, but it’s hard to get approved. In 2017, only about 1 in 3 people who applied even received disability benefits from the government. And they get less than $1,200 a month. If you were able to qualify, would that be enough to take care of your family?
“I don’t think I’ll use it.”
We hope you don’t need it. But the facts are 1 in 4 of today’s 20-year-olds will become disabled before they reach age 67. Another fact – injuries account for only 9% of disabilities, most are illnesses. If you rely on your paycheck, let’s protect it with disability insurance.
“It’s too expensive.”
Typically disability insurance costs between 1 and 3 percent of your salary, like the policy we talked about today. Where will the money come from if you’re sick or injured and unable to work? Not having disability coverage could cost you even more. For dollars a day, you’ll have the protection you need to keep your family and your lifestyle going if something happened.
40 years in and around the industry has made Insurance a part of my DNA. I have had the pleasure of working with and for some of the greatest minds in our industry. My "Bersonal" View is an attempt to capture some of the best ideas, the best concepts and the best practices in a way that can lead to success for others. It will certainly be my point of view, so please...don't take it "Bersonal".