No Work Means No Paycheck – The Need for Disability Insurance

by Seth Groff

The country is opening back up as Americans receive another round of stimulus checks. The relief is necessary for many people who lost their jobs when businesses shut down over the past year. No work means no paycheck, and the stimulus checks have helped families pay their bills and continue their lifestyle. One thing the past year brought to light is that many people may face financial hardship if their income stops.

This risk of losing an income is not new. Workers may become disabled due to sickness or injury at any time. According to the Council for Disability Awareness, “More than one in four of today’s 20-year-olds can expect to be out of work for at least a year because of a disabling condition before they reach the normal retirement age.”¹ The good news is that disability insurance can help protect against losing some income.

Disability insurance pays a monthly benefit to the insured when they are disabled due to a sickness or accident and unable to work. The monthly benefit amount is based on a percentage of their monthly income. The elimination period is the length of time the insured must be disabled before benefits are paid (14, 30, 60, or 90 days with Income Protection Direct). The benefit period is the length of time the insured will receive benefits (1 or 2 years with Income Protection Direct).

Selecting a benefit amount can be as simple as adding up the monthly mortgage, utilities, groceries, and other necessary living costs. Disability insurance will not replace their entire income; however, the benefit amount should be high enough to cover basic living expenses. The maximum monthly benefit for SureBridge Income Protection Direct is $2,500.

A great way to start a conversation about disability insurance is by helping your clients understand that their ability to earn an income is a valuable asset. Their house, cars, retirement accounts, and family trips are all a result of the individual being able to go to work and earn a paycheck. If they become disabled and cannot work, they may stand to lose all of those assets. Paying a monthly premium for disability insurance might be easier than paying the mortgage and light bill if an income stops.

Take time to learn about disability insurance and how it can help your clients. Call your best clients and make sure you’ve helped them plan for an unexpected loss of income.