On Friday, May 13th, Maxwell had the pleasure of presenting about disability income planning to Real Wealth Marketing’s audience of financial and insurance professionals. Listeners reviewed the presentation at 4.9 stars out of 5! Here’s a recap if you missed it:
The thing about disability income planning is that it really doesn’t have to be a disability conversation … until it is a disability conversation. Some advisors may think, “I help people build wealth so they don’t need to buy disability insurance.” You may even think this yourself. But the fact is, anyone using their income for anything needs disability insurance.
The above image illustrates what can happen when someone taps into their retirement account and, effectively, diminishes their Yetworth. This person was earning $100,000 per year and saving $10,000 per year for retirement – on the right track! Unfortunately, a disabling illness causes a one-time asset reduction which results in a total loss of $1 million – 50% of their total potential net worth at retirement age! Even a short-term event can have major long-term implications on retirement savings goals. This image comes directly from our free ebook, Planting the Seed.
Most business owners think of their business as their baby. We want to protect these businesses as much as we want to protect the families. That’s why Business Overhead Expense DI policies make a great pairing with individual DI.
What happens if the rainmaker can’t make it to work? A common example is a dentist. Say this office has the main dentist, a junior dentist right out of residency, a few dental hygienists, and one or two office managers. At some point, the dentist goes out with carpal tunnel – not able to practice at all. What happens to everyone’s income? Nobody gets paid and, unsurprisingly, they have to find work elsewhere.
A business overhead plan would help here by paying the regular monthly business expenses including employee salaries and benefits. Maybe the dentist has individual DI, but what about the staff’s retirement accounts?
In some cases, the dentist goes out on disability and never gets to come back to work. If the business is a partnership, this is where a Buy/Sell policy comes into play. Maybe, for example, the junior associate was in line to take over soon anyway. Without a Buy/Sell policy, the business could spiral. With one, the junior associate could buy out the disabled dentist and continue to run the business.
One industry you’ll never have to “sell” disability insurance to is medical professionals. They see injury and illness daily. Their residency coordinators and mentors tell them to buy disability insurance. Plus, carriers have competitive prices and guarantee-issue for most of these occupations.
Doctors will need this stuff. The Group LTD they’ll inevitably get through their employer will be vastly inadequate for their eventual high incomes – and it won’t be portable. After taxes, a Group LTD plan only leaves about 25% of take-home pay as a monthly benefit. That’s simply not enough for a doctor’s lifestyle. This is an easy sell if you can get in with a doctor or resident group.
Helping You Present
With nearly forty years of experience in the life and health insurance space, Yetworth has learned a thing or two about how to present solutions to a client in a way that convinces them of the need. Our strategy? Collaborate, collaborate, collaborate.
We specialize in conducting joint calls with you and your client so we can perform fact-finding evaluations, present plan designs, and answer any questions. This also puts you in an objective, third-party role – on the side of your client – while the DI specialist educates and takes any tough questions or objections.
Of course, our e-application for almost all products we offer is the cherry on top for when your client is ready to apply – so they can do it efficiently on their own time.