Industry News

DI: Buy it on Yourself

One of the reasons agents and advisors don’t sell much or any disability insurance is because they don’t own it on themselves.

It certainly would be an awkward moment if, in the course of presenting a disability insurance proposal, your client said to you, “I don’t know what I should do.  What kind of DI coverage do you have?”  (If you don’t have it because you can’t qualify for it medically, you really  have story to tell.)

It really doesn’t make much sense not to have your own DI policy when you consider:

  1.  The most important asset for most agents and advisors is their income
  2. Disability income insurance is relatively inexpensive and if you go on claim, the income from the policy can be free of income taxes.
  3. You don’t need to buy the maximum allowable to have at least a “safety net”
  4. Applying for DI is no more complicated than applying for life insurance.
  5. Statistically, one is more likely to be disabled during their work life than die prematurely
  6. Most accidents that cause disability occur away from the workplace.
  7. Premium discounts are available from major carriers for multiple policies for those in business together or that work for the same employer.
  8. One can get income replacement of $3,000/month or less through simplified underwriting (no medical exam) and that policy can have a future purchase option for later additions of income replacement without the need to medically qualify.
  9. Group DI is great, but the income it provides is typically taxable as income and you can’t  take it with you if you leave the employer that provides it.


Consider other situations involving short-, long -, or permanent term disability

  1.  If you own your own practice or firm, would you be interested in a plan of insurance that would pay up to 2/3 of your fixed business expenses if you were disabled for more than 30 days, the premiums of which might be considered deductible as a business expense?
  2. Should you be unable to handle day-to-day business obligations for longer than 30 days, would you be interest in a plan of insurance that would pay for part-time help to keep the doors of your practice open?
  3. If you rely nearly 100% on an employee or partner to take care of business when you’re not around for a few days, would you be interested in an insurance policy that would  provide an income to that person, or that would provide that person with an income-tax-free lump sum of money to provide an income for them forever, if they became permanently disabled?

If you are an experienced financial professional, you probably know someone that has suffered a long-term or permanent disability and didn’t have disability insurance.  In fact, you may be trying to manage their assets now without any source of adequate income.

So, why don’t you own your own plan of disability insurance?  (Doctor, heal thyself.)  Click here to complete the pre-screen form and send it in.  Let’s get your income insured ASAP.

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