Chances are your clients already insure their life, their car,and their home. But they often overlook insuring their mostimportant asset–their ability to earn an income. Thatpaycheck is the primary source of funding for a lifetime of things,from basic necessities to their long-term hopes and dreams. The millions that can be earned over the course of a 40- or 50-yearcareer is surely an asset worth insuring.

But what would happen to your clients if their income stoppedbecause of illness or injury? Without a paycheck, how longcould your client pay rent and utilities, buy groceries, makestudent loan payments, etc.? In all likelihood, life as theyknow it would be thrown significantly off course.

The alarming fact is that one in four of today's 20-year-oldswill become disabled before theyretire.¹ And if you're thinking that mostdisabilities are the result of freak accidents, you're in for asurprise. The vast majority of disabilities, about 90 percent, arecaused by various forms of illness including cancer, mentaldisorders such as anxiety and depression, muscle and back problems,and heart disease.²

What to look for in a disability incomepolicy

Disability income insurance (DI) canhelp replace income if your client becomes too sick or hurt towork. It provides a buffer against the unexpected. Yourclients may have group DI coverage through their employer, which isa great start. However, it could leave gaps in their coverage andis dependent on where they work. So it’s important to help clientsidentify where the pitfalls are in their current policies. Clientsmay also not be interested in DI because they believe it may be tooexpensive or they don’t understand the coverage. They also may beunsure of what the definition of a disability actually is.

It’s worth exploring the possibility of supplementing groupcoverage with an individual disability income insurance (IDI)policy. And if they don’t have any DI, an IDI policy can helpprotect their income. They can also investigate these optionsby using a DI calculator, which will help them to determine thecost of individual coverage, build their own policy and see howmuch coverage they might purchase. Should disability strike, DIprovides income that can be used to keep their household running aswell as to help them adjust to their changed circumstances.

But before someone goes shopping for an IDI policy, they need toknow what features to look for to get income protection your clientcan count on:

How disability is defined

The definition of total disability outlines what constitutesbeing totally disabled.

• If a policy defines total disability as inability to return towork in any occupation, then it would typically paybenefits only if your client was unable to perform any job, eitherhis or her own or a job in a new field or occupation.

• If the policy defines total disability as an inability to workin your client’s own occupation, it typically paysbenefits if he or she cannot perform the duties of the occupationin which he or she was engaged prior to becoming ill orinjured.

Coverage for a partial disability and/orrecovery

A policy's partial disability benefit provides protection in theevent of partial disability or during a recovery period.

• Typically payable in an amount that is proportionate to the lossof income suffered due to sickness or injury.

• Supports your client’s financial recovery while he or sherecovers physically.

• Not available with most group plans.

Flexibility to tailor coverage to your client’s specificneeds

Both now and in the future, options (also called "riders") suchas these let your clients:

• Increase coverage as their income grows with no medicalinsurability requirement.³

• Adjust benefits to help keep pace with the cost of living.

• Safeguard retirement contributions.

• Continue student loan payments.

Portability

Most professionals expect to change jobs or employers multipletimes during the course of their career.

• Your clients can take individual DI coverage with them whenthey change jobs.
• Group long-term disability (Group LTD) plans typically are notportable.

Cancellability

To avoid the possibility of losing coverage just when they needit most, guide your clients to select a policy that's bothnon-cancellable and guaranteed renewableto age 65—with premiums also guaranteed until age 65.

• With group or association group coverage, your clients run therisk of being dropped and left unprotected at a time in life when,due to age or to a change in health, it would be very difficult toqualify for coverage from another provider.

Timing

Remember, the cost of individual disability income protection isage-based, so your clients can lock in a lower rate by buying whenthey are young and in good health.

Your clients have made a significant investment of time andmoney to build their careers with the promise of financial securityand the other rewards a successful profession provides. But shouldthey become too ill or injured to work, that promise evaporates. Astheir financial representative, you play a critical role inensuring that their greatest asset is properly protected.