Sometimes it’s good to laugh at your mistakes. If you drop the turkey before anyone gets a bite, or if you accidentally use salt instead of sugar when making the cranberry sauce, you’ll probably be embarrassed. But in the grand scheme of things, this type of blunder is no big deal. It can even lead to funny family stories for years to come. The same cannot be said about common disability insurance mistakes. These types of blunders are no laughing matter.
Keep reading to learn how to keep your clients from committing financial fowl play this Thanksgiving.
Are Your Clients Relying on Wishful Thinking?
Making a wish on the turkey wishbone is a great Thanksgiving tradition, but if your clients are relying on wishes when it comes to their financial security, they may be setting themselves up for disaster.
The hard truth is that, according to the Social Security Administration, one in four 20-year-olds will become disabled before reaching retirement age. While everyone hopes they won’t be the unlucky one in four, merely wishing for good health isn’t enough. As the popular wisdom goes, you need to hope for the best but prepare for the worst.
Avoid this common disability insurance mistake. There’s nothing wrong with wishing for good health, but help your clients prepare for the worst by purchasing disability insurance.
Are Your Clients Forgetting Something?
When you’re planning a big Thanksgiving meal, it’s easy to forget something. Maybe you forgot to get whipped cream to go on the pumpkin pie, or maybe you forgot to take the frozen turkey out to thaw.
It’s also easy to forget something when you’re working on your financial security and income protection. Here are some things your clients might be forgetting:
- Medical Bills. Some people may think they don’t need disability insurance because they have health insurance and savings. However, they may be forgetting about uncovered medical bills. Even with health insurance, most people have out-of-pocket costs. During a serious illness or injury, those costs can drain a savings account.
- Taxes. People with job-based group disability insurance may think they have enough coverage, but they may be forgetting about taxes. When disability premiums are paid with pre-tax dollars, the benefits are subject to income tax, so policyholders often get less than the expect. Individual disability insurance benefits aren’t typically subject to income tax.
- Retirement. It’s hard to save for retirement when you’re barely scraping by because of a disability. In fact, many people may end up draining their savings accounts. Although they might be able to make ends meet, they’ll be sacrificing the retirement they dreamed of. Disability insurance can help people continue to prepare for retirement during a period of disability, especially when the policy includes a retirement protection rider.
- The Waiting Period. Although individual disability insurance can be a financial lifesaver, most policies include a waiting period, often around three months. Some policyholders don’t have the savings needed to cover this period. A critical illness insurance policy can help cover the gap.
Avoid this common disability insurance mistake. Offer your clients a review of their disability insurance needs.
Are Your Clients Underestimating Their Needs?
When you’re planning a Thanksgiving meal, you want to make sure there’s plenty of food for everyone. At the same time, you don’t want to overdo things. Leftovers are always welcome, but too many leftovers can just lead to waste.
The same goes for disability insurance. You don’t want to realize you don’t have enough coverage when you need it. However, you don’t want to spend money on riders you don’t actually need.
Avoid this common disability insurance mistake. Help your clients identify their coverage needs. Then give your clients multiple options so they can find the right one for their budget.
Protect This Thanksgiving and Many More Thanksgivings to Come
What’s worse than a Thanksgiving Day disaster? A financial disaster.
While no one wants an overcooked turkey or a soggy green bean casserole, the long-term financial consequences of disability are much more serious, and they’re not the sort of mishap that will lead to funny family stories years from now. This Thanksgiving, your clients may be worried about pulling off a fantastic feast. Take a moment to encourage them to think about the disability insurance mistakes they might be making.
Our Thanksgiving campaign makes it easy. You’ll get a fun email, a turkey-themed infographic, and three social media posts that are ready for you to use. Download your Thanksgiving campaign now.