As a financial adviser or broker, you evaluate clients’ unique needs to provide them with appropriate solutions that protect them from the unexpected. In a world where “one size fits all” insurance plans are sometimes the norm, it can be a challenge to find the right mix of solutions to ensure your clients are fully protected, which is why it’s important to include individual disability insurance (IDI) in your mix of products.
IDI protects your clients’ income if they are unable to work due to injury or illness. It’s not enough for clients to be covered only in the event of their death. Clients can be sidelined for months or even years by an unexpected injury or illness. If a client can’t work for an extended period of time, how will the person pay bills? How will the client ensure he or she can pay for his or her house, cars, and the lifestyle the person is accustomed to? Demonstrating to clients how IDI can help them in a variety of situations can give them peace of mind and security in the face of the unpredictable. IDI can be a saving factor in a client’s financial life.
Some IDI policies include a family caregiving benefit that pays policyowners if they take time off work to care for a family member with a serious health condition. Caring for a sick family member can be enormously stressful by itself. Juggling caregiving and job duties, or deciding not to work and to forgo income, adds another level of stress. Caregiving benefits can reduce the financial impact of income loss and medical expenses that can occur during that caretaking period.
Example: Unexpected Childbirth Complications and Commiserate Financial Burden
Here’s a hypothetical example of how family caregiving benefits can help. Take Jared, a trial attorney. When Jared’s daughter was born, doctors quickly discovered she had a heart defect. Jared’s newborn daughter underwent surgeries, hospital stays, and months of follow-up appointments, adding enormous emotional and financial strain to Jared’s life. Benefits from Jared’s IDI coverage helped make up for the income lost when he spent time away from work to attend physician appointments and to be with his daughter in the hospital throughout her extended recovery, providing peace of mind during an extremely trying time.
Another benefit of most IDI policies is residual disability coverage. All IDI policies will pay a total disability benefit if an insured individual meets the definition of total disability and cannot work at all. Most also provide options for residual disability coverage, which will pay a portion of the total benefit if the insured individual can work some but not at full capacity. In most cases, residual benefits are payable if the insured individual is sick or injured and loses duties, hours, or income due to that disability…
Source: HR Daily Advisor