A Life Changing Resolution
Thursday, January 8, 2015
January naturally leads all of us to think about changes we could (or should) make in our lives to be happier, healthier, wealthier or wiser. There’s no question that improving your diet or exercising regularly will improve overall health and wellness. And no one would dispute the importance of spending more quality time with loved ones, taking up a new hobby or finally planning that vacation that you’ve always wanted to take. But one resolution this year could take your clients a long way towards the goal of being wiser, even though they may not even realize it yet.
While your clients are reviewing their investment plans for 2015, they should also take a close look at their DI plans offered through work to ensure they’re adequate or review their personal policies to make sure they still fit their lives appropriately.
Reasons your clients may need to update their DI policies include:
· A salary increase or job change
· Lifestyle changes related to additional expenses
· Buying a house
· A new baby
· Updated financial goals
According to some studies, 90% of long-term disabilities are a result of illness, not injury. Sadly, illness can affect anyone, regardless of job type or working conditions. Even white-collar clients should prepare for the possibility of missing work as a result of a lengthy illness or long recovery period from surgery.
Among the most popular reasons people don’t have enough DI coverage is a misconception that Social Security will step in and help pay bills if they are unable to work for extended periods. It’s your responsibility to remind your clients that as much as 65% of Social Security Disability applications are denied the first time they’re submitted.
Even if your clients have DI through work, they may not have enough coverage, or they may not understand the payout limitations, tax implications or coverage periods.
Put it on your own resolutions list to help your clients understand the importance of adequate DI coverage. Neither you nor your clients will regret such a wise move for 2015.
Give us a call anytime for ideas on how to discuss the wisdom of DI. We’re always ready to offer advice and point you towards useful resources.