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Providing a Solid Foundation with Disability Insurance


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Almost everyone is familiar with life insurance and the reasons for needing proper coverage. Disability insurance is just as important, if not more! It’s the foundation of any solid financial plan.

You probably manage a lot of assets for clients. Pick an average client and tell me, what’s their greatest asset? A 401(k)? IRA? Permanent life insurance policy?

For many, it’s not in a financial statement. It’s their ability to get up and go to work every day. Their lifetime earning potential is greater than any of their property or investments.

If that income is disrupted, even for a short time, you can forget saving for long-term goals. It becomes increasingly difficult just to pay day-to-day bills.

A house built on poor foundations won’t be standing for long. The same can be said for a financial plan. You likely pay for your expenses – mortgage, utilities, car payments, insurance premiums, etc. – with your paycheck – but what happens if your client should find yourself unable to work?

This is what makes disability insurance so important. Our most valuable asset is our ability to earn a paycheck. Just like our homes, our cars, our property, and our life, it should be insured against catastrophe.

Continue the Conversation

Ask your clients:

  • What are your fixed monthly expenses?
  • How is your current health? What do you think will happen in the next five years?
  • How would you maintain your current lifestyle should you be unable to earn your paycheck?

Injury and illness don’t care who you are, what you look like, how much money you make – your wealthiest, luckiest clients – or even you – could be brought down in an instant. We can’t change their fate, but we can change the outcome – financially, at least.


See It ThroughYour clients worked hard to build their financial future (and so did you). But once it’s gone, it’s too late. It’s our job to make sure that everything works when your clients can’t. To make sure their foundation is protected.

Don’t end the conversation before checking the last box. Check out these resources to SEE IT THROUGH – to create a solid financial foundation for paychecks, made possible.

Sign Up Now  



About the Author


Meghan_Cormany.jpg


Meghan Cormany, DIA, DIF
Sales Development Specialist - DI
Office: (260) 478-0674
Cell: (260) 417-9638
meghan.cormany@ashbrokerage.com

Schedule a Call

Meghan Cormany helps advisors add value and protection for their clients through disability insurance. As a sales development specialist, she provides sales concepts, training and solutions to help integrate DI into existing planning conversations. Meghan has been an integral part of the Ash DI team since 2008 and is a leader in disability sales.

DI: An Easy Addition to Your Practice


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I hear the same phrase on a daily basis: “I’m mostly a life producer. I rarely sell DI.”

I get it. Disability insurance isn’t something you focus on every day. It can be an uncomfortable subject to discuss, and if you’re not confident you can answer all of your clients’ questions, it can seem even harder.

DI products are complex, but the conversation can be easy. Start by asking questions that will get clients thinking about their plans:

  • Do you know anyone who has been disabled, and unable to work, due to a sickness or accident?
  • What impact did it have on their family?
  • (If they are married) Can your family sustain their current quality of life with just one income?
  • Are you willing to lose your savings, and possibly have to dip into your retirement account, if you were to become disabled?

Often, and especially if they are young, your clients haven’t thought about the possibility of not being able to work. It’s natural. But no matter what stage of life they’re in, nearly every plan starts with the same thing: income.

Many of us have stories about someone who has been unable to work, even for a short period of time, due to some sort of disabling event. But we never think it will be us. Getting your clients to see that it could happen to them is the first step to getting them to recognize their need for coverage.

You don’t have to have all the answers. You just need to ask the right questions.

See It ThroughYour clients worked hard to build their financial future (and so did you). But once it’s gone, it’s too late. It’s our job to make sure that everything works when your clients can’t. To make sure their foundation is protected.

Don’t end the conversation before checking the last box. Check out these resources to SEE IT THROUGH – to create a solid financial foundation for paychecks, made possible.

Sign Up Now  



About the Author


Meghan_Cormany.jpg


Meghan Cormany, DIA, DIF
Sales Development Specialist - DI
Office: (260) 478-0674
Cell: (260) 417-9638
meghan.cormany@ashbrokerage.com

Schedule a Call

Meghan Cormany helps advisors add value and protection for their clients through disability insurance. As a sales development specialist, she provides sales concepts, training and solutions to help integrate DI into existing planning conversations. Meghan has been an integral part of the Ash DI team since 2008 and is a leader in disability sales.

The 3 Questions You Need to Start Every DI Conversation


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The hardest part of the disability insurance conversation isn’t the products. Or prices. It’s getting started. Face it: If you’ve put off having the talk with your clients, it’s because you’re not sure how to break the ice.

It doesn’t have to be hard. I personally use three simple questions to start things off. The questions are designed to help the client think in real-life terms.

You don’t have to talk about funding. Or insurance plans, for that matter. All you need to do is make them see the importance of planning so you can head down that path – together.

Q1: Do you feel you’re going to become disabled and be unable to work?

Most clients will say no. People are typically unable to fathom the idea that they will ever not be able to work. Truth is, about 1 in 4 of today’s 20-year-olds will suffer a disabling event sometime in their lives.1

Q2: Do you have a plan in the event you do become disabled?

Some will answer that they have savings. Some will reference their employer’s group plan. Most will mention Social Security. While these are all great resources to utilize, they aren’t always a great fall-back plan.

While group disability is a great benefit to have, it isn’t guaranteed. Also, those benefits are taxable and only replace a portion of your income. Are your clients able to sustain their way of living on 60 percent of their income, and lose part of that to taxes?

Social Security … It’s difficult to qualify. That’s a huge understatement. The wait time is long. And the approval rate is only around 34-35 percent, after multiple applications and possibly hiring an attorney. If you do finally gain approval, the benefit on average is $1,300 per month.2 Most individuals will find it very difficult to sustain their quality of life on this benefit alone.

Q3: If a disability did occur, and you needed help, who would be there?

A common thought, especially for younger individuals, is that they would be able to rely on family members for support: emotional, physical and most importantly, financial. This should prompt a follow-up question: Can you name three family members who are willing and able to pay your bills for more than a couple months?

  • An average individual disability insurance claim lasts 31.6 months3
  • An average group long-term disability claim lasts 34.6 months4




See It ThroughYour clients worked hard to build their financial future (and so did you). But once it’s gone, it’s too late. It’s our job to make sure that everything works when your clients can’t. To make sure their foundation is protected.

Don’t end the conversation before checking the last box. Check out these resources to SEE IT THROUGH – to create a solid financial foundation for paychecks, made possible.

Sign Up Now  



1 Source: Social Security Administration, “The Facts about Social Security’s Disability Program,” January 2018: https://www.ssa.gov/disabilityfacts/materials/pdf/factsheet.pdf
2 Source: Council for Disability Awareness, “The basics of the Social Security Disability Income Program.” October 2018: http://blog.disabilitycanhappen.org/the-basics-of-the-social-security-disability-income-program/
3 Gen Re, “U.S. Individual DI Risk Management Survey 2011,” based on claims closed in 2010
4 Gen Re, “U.S. Group Disability Rate & Risk Management Survey 2012,” based on claims closed in 2011  



About the Author


Meghan_Cormany.jpg


Meghan Cormany, DIA, DIF
Sales Development Specialist - DI
Office: (260) 478-0674
Cell: (260) 417-9638
meghan.cormany@ashbrokerage.com

Schedule a Call

Meghan Cormany helps advisors add value and protection for their clients through disability insurance. As a sales development specialist, she provides sales concepts, training and solutions to help integrate DI into existing planning conversations. Meghan has been an integral part of the Ash DI team since 2008 and is a leader in disability sales.

Is LTC Really That Expensive?


Protection

Let’s put things in perspective first:  according to Genworth’s Cost of Care Survey for 2018, the annual national median cost of care in 2018 ranged anywhere from $18,720 to $100,000, depending on your needs. Breaking that down to monthly costs, that’s between from $1,560 - $8,364 a month to provide care for you or your loved one.

Where is this money coming from? How does this affect your portfolio? More importantly, if you need care for an extended period, how much will be left for your spouse to live on (or even fund their own care)?

Annual National Median Costs 2018

Homemaker Services:1 $48,048
Home Health Aide:1 $50,336

Adult Day Health Care:2 $18,720

Assisted Living Facility:3 $48,000

Semi-Private Room in a Nursing Home:4 $89,297
Private Room in a Nursing Home:4 $100,375

 

Now, let’s look at the cost of having a plan in place. If a 55-year-old couple were to purchase a $4500 monthly benefit, three-year policy adding inflation, the cost per month is just under $300. That would total $108k if paid for 30 years. Yes, $108 thousand sounds like a lot, but is it?

Since we wisely added inflation to the policy, our pool of money has grown to $393,216 per person!We spent $108k over 30 years to get $786,432 to spend on care.

The truth behind the numbers is simple. It’s more expensive NOT to have a LTC plan in place.

Don’t trust these numbers? I’ll get you your numbers, specific to you. #just ask

 

Genworth 2018 Cost of Care Survey, conducted by CareScout®, June 2018

1 Based on 44 hours per week by 52 weeks

2 Based on 5 days per week by 52 weeks

3 Based on 12 months of care, private, one bedroom

4 Based on 365 days of care

Long-Term Care cost of care LTC Long Term Care

Why Self-Fund if You Don’t Have To?


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The best planning for long-term care is to amass long-term wealth, correct? Not really. If your clients are considering self-funding, you need to walk them through the numbers.

Take, for example, a 65-year-old married female in Texas. By repositioning $100,000 of her assets today, she can create a total pool of $507,819 in 20 years to spend on qualified long-term care expenses. P.S. Those benefits are tax free.  

To me, this is a no-brainer!

Why would a client choose to use their own money when they could leverage it with insurance? Why pay full price when you can pay the discount amount? Do you self-insure your car? No, because why pay 100 percent of the costs if you don’t have to?!

Let’s not forget: Self-funding means leaving not much, if anything, to the loved ones left behind.

For a more in-depth conversation around leveraging your assets to fund LTC – Just Ask. Use my calendar link to schedule a time that’s convenient for us to talk.

LTC Long-Term Care Long Term Care Self funding self-funding