There are many reasons that clients don’t think that investing in Disability Insurance (DI) is necessary, but what they don’t realize is how at risk they are for needing it.
We have highlighted several reasons why your prospects and current clients think they don’t need DI and statistics that prove differently.
- “It doesn’t happen that often.” Just over 1 in 4 of today’s 20 year-olds will become disabled before they retire.
- “The chances of becoming disabled aren’t high.” A typical healthy mid-30’s female has a 24% chance of becoming disabled for 3 months or longer, and a 38% chance that the disability would last five years or longer. A typical healthy mid-30’s male has a 21% chance of becoming disabled for 3 months or longer, and a 38% chance it would last for five years or more.
- “I’ll just work a different job.” One in eight workers will be disabled for five years or more during their working careers.
- “I’ll have enough money saved if it happens.” Medical problems contributed to 62% of all personal bankruptcies filed in the U.S. in 2007 – an estimate of over 500,000. This is a 50% increase over results from a similar 2001 study.
- “I’ll get social security or workers’ compensation.” 65% of initial SSDI claim applications were denied in 2012. Less than 5% of disabling accidents and illnesses are work related. The other 95% are not, meaning Workers’ Compensation doesn’t cover them.
As you can see by the statistics provided by Council for Disability Awareness, the need for DI is evident and necessary.
So the next time your client uses one of these excuses, state these stats and call TBA to help you find the best options to protect their income and their families.