If your clients bring up Social Security as a fallback option for disability insurance, make sure they truly understand what they’re getting into. Take a few minutes to educate your clients on what Social Security is really bringing to the table.
Social Security Disability has a very strict definition of disability:
“inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairments which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months.”
The approval rate for a Social Security Disability claims is low – only around 35% of initial claims each year are approved.1 Often, people seeking disability relief under Social Security have to hire legal representation to facilitate their claim. That route is usually taken after multiple denials.
Also, the average monthly benefit from Social Security is around $1,300 per month, or $15,600 per year.1 For perspective, those figures barely put single-person households over the poverty line calculations for 2019. For families of two or more, relying solely on Social Security benefits would put families into serious financial straits. Check out the table for details.
Can your clients continue to sustain their lifestyle on that income?
Here are some things you can do to make it hit home:
Your 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.
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1 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/
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.
© 2018 Ash Brokerage LLC.