May is Disability Insurance Awareness Month, a time when you, the agent, can do something about the enormous gap that exists between Americans’ need for disability insurance and the actual coverage they have.
Disability insurance is a form of income protection that pays a percentage of your client’s monthly income – typically 60% or more – if they can not work because of illness or injury. It fills the coverage gaps left by health insurance plans and life insurance policies. Disability insurance is the most misunderstood of all major insurances and is often overlooked when building a financial safety net.
There are three main types of disability insurance:
- short-term disability insurance (STDI)
- long-term disability insurance (LTD)
- Social Security Disability Insurance (SSDI)
Do Your Clients Need Disability Insurance If They Have (Employer) Short-Term Disability?
Many people have a Short-Term Disability Insurance plan (STDI), through their employer and assume they are covered if something happens. However, STDI plans do not protect their job if their employer refuses to hold it. Your clients may be surprised to hear that employers in Texas, for example, can legally fire them while on leave. Additionally, STDI benefits can end if they lose employment while disabled. This means if your clients become disabled and they lose their job, their short term disability benefits may end. In contrast, a private Long-Term Disability policy, that sticks with them from job to job, provides continued benefits if illness or injury keeps them out of work for a longer period of time.
Without disability insurance, many Americans would be forced to use savings to help them meet their expenses if they were unable to work due to illness or injury. This is not good news considering nearly 70% of Americans have less than $1000 in savings. Americans need a reality check when it comes to protecting their family’s financial future and Life Happens is working hard to do just that.
Life Happens is a nonprofit dedicated to educating US consumers about the importance of life insurance for sound financial planning. They share powerful, real-life stories about people who took financial responsibility with life insurance and related products. Keep reading to learn how Scott Rider, who was diagnosed with Parkinson’s disease at just 47, protected his income and family thanks to the disability insurance he purchased.
We hope Scott’s story inspires you to consider the important role insurance has in your client’s life. Empower Brokerage is dedicated to helping you educate your clients on the insurance they need to get the most out of life. Whether it’s through webinar training, one-on-one calls, seminars, or marketing plans. We want you to be successful. Give us a call if you have any questions 888-539-1633.