Complete Income Replacement is Essential to Disability Financial Planning
Insurers, always in fear of claims that dissolve the collected premiums, are cautious of being too liberal with their customers. This being the case, those who decide the policies and coverage to be sold will be very stingy with the amount of monthly benefits the company will offer. In prior decades, the amount offered was usually a reflex response by an executive of the company, not based upon statistical analysis. The industry eventually concluded that a modern approach to determining what people should have as a monthly benefit was needed. The Council for Disability Awareness’ determined a general prescription; to insure at least 65% of income with the use of Disability Insurance.
A comparison of the CDA formula to current issue and participation limits shows insurers’ apparent disdain for the suggested benefit amounts. View our issue and participation limits chart by clicking the image to the right.
The essence behind this thought is that changes make for selling opportunities. In this case, we demonstrate the opportunities to be found in reviewing clients’ existing disability plans and considering the clients’ income replacement needs. Your opportunity for improving and enriching a person’s Disability Financial Plan will become obvious.
Whether the insured earns a modest income or is highly compensated, there is a need for adequate and complete income protection to sustain a person’s lifestyle during periods of non-productivity or diminished cash flow due to disablement. Modern disability plans make the ability to maintain one’s lifestyle a reality.
Contact us today to learn more about our Specialty Disability Plans that are sure to take your business to the next level.