Broker Check
It’s Income Protection, Not Disability Income Insurance

It’s Income Protection, Not Disability Income Insurance

| March 25, 2019

One of the first things we discuss with a producer new to Ashford Brokerage is how to describe the product in the most effective manner. This begins with moving away from the term “Disability Income Insurance” and moving towards “Protect A Portion of Your Income.”

What is the first thing that comes to mind when you hear the word “disability?” For many people, it means wheelchairs and car accidents. We associate “disability” with the most severe circumstances we can imagine, and this leads many people to dramatically underestimate their chances of it occurring. Hence, they don’t want to buy insurance to protect against something they don’t think will ever happen to them. Ask yourself, “Do I know anyone that is totally disabled?” Do we even know what that means?

The problem in the language is that most disabilities aren’t caused by accidents and don’t lead people to wheelchairs. According to the Council for Disability Awareness, about 90% of disabilities are the result of sickness, not accident. Check out this link to see the top 10 causes:

The top 10 is littered with issues we have seen personally or have seen family or friends experience Back issues, arthritis, cancer, heart disease, and mental health are some of the most common issues that can lead to a long-term absence from work. When you think about disabilities, you may not be thinking about these issues, and your clients might not be thinking about them as well. If they don’t believe the risk is real, they will never buy insurance to protect them from it. But, what is the risk?

According to the Council for Disability Awareness, just over 1 in 4 adults entering the workforce today will be out of work for a year or longer due to a disabling condition. 25% is an alarming number, but did you notice one year? How many of your clients could go an entire YEAR without income? If the risk is 1 in 4, you need to have a process in your practice for discussing the importance of income protection.

Now, I come from the disability world. I used the term disability for a lot of my career. What I found though is that when consumers don’t buy the coverage, they overwhelmingly “didn’t think that they would get disabled.” The problem wasn’t with them. It was with me and how I described the problem to them. Of course, they didn’t think they would get disabled. I hadn’t done a good job of describing what disability was and how likely it was to occur to them. They didn’t care that this policy has this awesome feature or that we had some special underwriting program for them. They didn’t want to buy because they didn’t feel the NEED.

We now use the proactive approach of developing a plan for comprehensive income protection. With the risk that 1 in 4 clients might not have an income for a year or longer at some point during their career, this issue is too important to be left to chance.

Contact an Ashford Brokerage Manager today and get started protecting a portion of your client’s income. It will make you a better financial professional, and it will lead to more client’s protecting this vital area of their life.