When asked what their most valuable asset is, most people will tell you it's their house, car, or possibly their retirement account, but for most of us, the answer is actually our income or ability to make a living. Unfortunately, disability insurance is one of the most widely overlooked types of insurance in financial planning. This is alarming when a full 78% of Americans live paycheck to paycheck (1). This dependence on a steady income stream is why almost half of people presented with disability insurance will buy some sort of policy (2). Help your clients prepare for the unexpected by showing them the value of income protection.
If you still don't think it's important to talk to your clients about income protection products, consider these stats:
At least 51 million working adults in the United States are without disability insurance other than the basic coverage available through Social Security. (3)
95% of long-term disability claims are not work-related, meaning workers' comp plans will not help. (4)
For every 1 house lost by fire, 48 are foreclosed upon as a result of a disability. (5)
Reach out to AMG for help and resources that make it easy to add Disability Insurance to your portfolio of client solutions.
American Council of Life Insurers, unpublished data from study released in September 2017 as Assessing Americans’ Financial and Retirement Security. ACLI found that 54.3% of non-retired households (51.3 million in total) did not report having disability insurance. Assuming there is at least one adult in each household, this means the number of “uncovered” adults is at least equal to the number of “uncovered” households.