DI: The Missing Link in
Retirement Planning
Whether you sell life insurance, health insurance or annuities, your clients depend on their income to pay bills, including premiums, and save for retirement. Disability Income Paycheck Insurance is critical to keeping their financial lives balanced.
Stats show that 9 out 10 individuals underestimate their chances of becoming disabled before retirement. The need is real, and an Income Paycheck policy could save them from financial hardship and save their retirement.
A recent Life/Health Daily ThinkAdvisor article posed an important question for consumers planning to eventually retire:
“If you were not able to work and earn your income for an extended period of time due to an illness or injury, where would you get the money to maintain your family’s lifestyle, and fund your retirement?”
They suggest that a client unable to work for an extended period of time without proper disability insurance to replace their income could not look forward to retirement, or at least not the kind intended.
Many consumers say that to get the cash to cope with a disability, they will “raid their retirement savings.” They reference a 2022 Barometer Study by Life Happens and LIMRA where one in four people said they’d turn to their retirement savings if they were disabled and unable to work.
They label this as serious financial misstep when you consider that one in four workers will be disabled at some time in their career, according.to the Social Security Administration.
They also reference a number of important real-life statistics, such as:
- Just 14% of those working say they have an individual disability insurance policy (down from 31% a decade ago), and more than half (53%) say they need it, according to the Insurance Barometer Study.
- About 53% of workers say they need individual disability insurance.
- For most clients, income protection will cost less than 3% of their income.
For insurance agents it suggests: “Granted, it’s tough to have the disability insurance conversation — we know that as an industry. But that doesn’t mean you shouldn’t be having the tough conversations. Clearly, there is a huge need and an untapped market for this. You can play a part in closing this gap.”
For more information on how to turn these facts into sales, email or call David at Cenco at Ext 132.
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