Combine DI and LTCI: asset protection beyond age 62

By Daniel Steenerson

Disability Insurance Services


As a disability insurance (DI) broker, you’ve done a great job of protecting your clients with income protection during their working years. But what about after retirement? Have you talked to them about how to protect their assets beyond the working years?

With changing demographics and a booming elderly population, the need for long-term care services is at an all-time high. For most clients, the need for long-term care isn’t a question of if, but when. That’s why your clients need financial protection beyond age 62.

Most people understand the importance of sound financial planning. And that’s a good place to start in making the case for both disability insurance and long-term care insurance (LTCI) as crucial ingredients of a smart financial strategy.

DI for the working years to protect the paycheck

The consequences of becoming disabled and unable to work should be obvious. The ability to earn a living is each person’s most valuable asset. Without that ability, all other assets (houses, vehicles, retirement and education) can slip out of reach.

Going without paycheck protection can cost your clients — and possibly their family members — everything in the event of a disabling injury or illness. Those who secure income protection have better self-esteem as family providers, less stress, and better chance of recovery if and when illness strikes because they can focus on health instead of finances.

LTCI for the retirement years to protect savings from the drain of LTC costs

When your clients reach the end of their working lives, the last thing they need is to see their entire nest egg drained away on long-term care costs. But the chances of that happening are increasing all the time, with long-term care costs on the rise and the volatility of the economy. If you’ve seen a cost of care calculator, you know that the cost of long-term care is rising fast — and will be as high as $20,000 a month in 20 years, when many of your clients are elderly.

Clients with long-term care insurance can enjoy their retirement years with confidence, knowing they’ve taken wise steps to protect their assets. This relieves the all-too-common worry of outliving one’s savings. For more affluent clients, it helps ensure they can pass down wealth to the next generation — a legacy many strive to achieve.

And so, with these goals in mind, it’s up to you to make the case. Make sure your clients understand that both the cost of disability and long-term care can wipe out savings — fast. The solution? Offer DI + LTCI for complete life cycle protection. Why not offer them the peace of mind that comes with knowing their finances are protected for life?