Disability Insurance
Individual disability insurance should be an integral part of producers’ planning for their clients, and is often completely overlooked when discussing your client’s insurance protection. Disability insurance is designed to replace anywhere from 45-60% of your client’s gross income on a tax-free basis should a sickness or illness prevent them from working.
AT ISN Network, we provide experienced agents, or even those new to the sale of disability insurance, with a solid sales and product platform for your clients. Disability insurance can be a problem for certain “gray collar” and “blue collar” occupations – ISN Network can get you the quotes you need, even for many impaired risks. Request your DI proposal by clicking here for our form, and you’ll get a response in 24 hours.
Why Your Client Needs to Consider Individual Disability Insurance
Buying disability insurance usually ranks low on their financial to-do list. After all, many of your clients are healthy and work as professionals, small business owners or corporate employees, so what are the odds they’ll need it? The reality is that about 30 percent of Americans age 35 to 65 will suffer a disability lasting at least 90 days sometime during their careers, according to the Health Insurance Association of America.
Without coverage, an unexpected disability can easily drive anyone into serious debt, or jeopardize the survival of a small business.
An important fact many producers and their clients miss is that even for employed clients company-issued disability insurance often provide only short term disability, with long term disability an election or one provided only to highly compensated employees. But those benefits are also fully taxable, which means your client will get paid - after tax - far less than what they need.
And Social Security or state disability may not offer coverage -- Social Security disability benefits are one of the most difficult benefits to qualify for and state disability benefits may not be available at all.
ISN Network Helps Producers Customize Proposals for Clients
We look for company strength - there are maybe six major insurance companies left that still offer disability insurance. Our request form contains the options you need to consider to provide affordable but relevant coverage for your client. Non-cancelable provisions and guaranteed renewability locks in rates and benefits. Definitions of "total disability" vary; "own-occupation disability" offers a benefit if your client is disabled and cannot perform the principal duties of their occupation, even if they can do some other tasks.
Consider residual or partial disability coverage. It’s estimated by one large carrier that a third of their claims are for partial disability coverage. Insurers pay partial disability benefits if you can only work at your job for a reduced period of time. Ask about other riders. Your client may want a benefit that adjusts for inflation, or have a need for a "future purchase option" – allowing them to buy more coverage as their salary rises or business expands. Other factors to discuss with your clients affecting benefits and premiums include 1.) the policy's elimination period; 2.) the benefit period – most benefit options include 3 years, 5 years, or benefits to age 65 or 66/67.
Underwriting of course will depend on your client’s verifiable income, and their occupation. Insurers base quoted benefits one net earned income, and use classes that sort different jobs according to their likelihood of filing a claim. The more likely that occupation might result in disability, the more expensive the coverage will be.
ISN Network is there to help you do the right thing for your clients. Call us at (800) 338-1892, or click here to download our online illustration request.
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