Think of three possible events that would most negatively impact someone’s financial security. They might likely be:
- Death of an income provider
- The inability to earn a living, even temporarily, due to an illness or injury
- Facing long-term care expenses without financial resources
This month, September, many insurance professionals are focusing on life insurance thanks to Life Insurance Awareness Month. And while life insurance can be fundamental to a secure financial future, so are the insurance products that reduce the economic impact of disability and long-term care expenses. Think of disability, life, and long-term care insurance products as the three legs of the financial security stool, DI + LI + LTCI.
Lack of essential insurance coverage
In May of this year, the Federal Reserve published Report on the Economic Well-Being of U.S. Households in 2015. While more Americans described their economic status as “living comfortably” or “doing okay” almost half, 46 percent, are unprepared for a financial emergency of $400. We’ve read these statistics for many years now, even as the economy and economic status of many people are improving and saving rates appear to be increasing, a large number remain without a sufficient cushion.
Clients often don’t consider insurance products as a means to reduce these financial gaps. Of those with household incomes of $100,000 a surprisingly large number do not own essential coverages. At this level of income, affordability is less of an obstacle, yet almost 20 percent are without life insurance. Only 47 percent are covered by disability insurance and less than 23 percent by long-term care insurance.
Call to action
Drawing attention to the value of life insurance during Life Insurance Awareness Month also provides an opportunity to introduce the importance and value of disability insurance and ultimately, long-term care insurance. Industry studies consistently reveal many of those uninsured for life, disability or long-term care insurance have never been asked about these coverages by a financial professional. Sadly, as a nation, our knowledge of personal finance earns less than passing grade. In fact, 41 percent of Americans would give themselves a grade of C or less when it comes to personal finance.
This represents a tremendous opportunity for the financial professional willing to talk to clients about the three essential insurance coverage, DI + LI + LTCI. Those that fail to initiate these topics are vulnerable to losing the client to a competitor who provides the additional value of reviewing all the client’s financial needs.
Even advisors without expertise in disability or long-term care insurance can rely on a firm like DIS to provide as much support and advice as necessary to prepare for the client meeting. Access our free materials to become better acquainted with disability and long-term care products. Clients considering disability insurance might be interested in Asset Protection for Every Life Phase, the Top Five Reasons for Income Protection or our Disability Infographic.
Based on the client information you provide, your DIS representative will recommend the product and the premium level that fits the client’s situation. Do your clients and yourself a favor. Call DIS today.