5 benefits of individual disability insuranceBlog added by Andrew Gilmore on March 4, 2016
Andrew Gilmore

Andrew Gilmore

San Diego, CA

Joined: April 21, 2015

Insurance advisors: If you’ve talked to prospects about disability insurance, you’ve probably encountered this objection more than once: “I get disability insurance through my work.” How you respond to the “get it at work” objection will make or break your chance for the sale. This is an opportunity to educate. Most of your prospects have never been told why individual disability insurance (IDI) is essential even if they have an employer-sponsored long-term disability plan. If your prospects rely on their paychecks, individual disability insurance is a must. Here are five reasons why:

1. Portability: IDI follows you to any future position or to self-employment. Your disability insurance shouldn’t end when a job ends. The need for income protection is ongoing.

2. Taxation: Private disability insurance is tax free while employer-sponsored benefits are taxed. This makes a huge difference in the amount of money you’ll have to help sustain your lifestyle if you’re ever unable to work due to a disability.

3. Sufficiency of Benefit: As mentioned previously, work plans are taxed. Many plans provide as little as 42 percent of your gross salary. If you make a portion of your income from commission or bonuses that probably won’t be included in the benefit calculation.

4. Length of Benefit Period: Many disabilities last longer than five years, but many employer-sponsored policies only have 2-, 3- or 5-year benefit periods. With an individual disability insurance policy, you can choose coverage that lasts until you retire.

5. Policy features: With work plans, you get what you get. With individual plans, you customize policy features to meet your needs. Choose non-cancellable and guaranteed renewable contracts; own-occupation definitions; the future purchase option; cost of living adjustments; partial disability benefits and more!

In a nutshell: For just a few dollars a day, your clients can purchase an individual disability insurance plan that insures millions of dollars in future income. It’s a pretty amazing deal when you think about it.
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