Help Your Self-Employed Clients be Smart-Not Reckless-About DI
Tuesday, March 17, 2015
The same spirit that drives entrepreneurs to strike out on their own and freelancers to prioritize freedom in their workday can get in the way of making a wise decision about disability insurance. While these strong-willed individuals can certainly do many things on their own, protecting themselves against losing their paycheck due to long-term disability is going to take some assistance. Don’t let your self-employed clients erroneously believe that DI is something that they can overlook.
Ask your self-employed clients if they believe they need life insurance, and generally they will say “yes.” But then ask if they realize that loss of income is more often due to long-term disability than it is to premature death and they may suddenly understand why if they need life insurance, then they also need disability insurance.
Even if your clients aren’t working in high-risk fields, disability can still impact their business. In fact, most disabilities are not caused by accidents but rather by illness and injury. Adequate disability coverage can be the financial lifeline that allows your clients to stay in business and get back to what they do best after an extended recovery period.
Encourage self-employed clients to consider policies that:
· Provide coverage when your client can’t perform work in their current occupation, rather than in any occupation.
· Covers your client through their entire working career, until retirement.
· Have the shortest elimination period possible, unless your client has a significant amount in savings.
· Get as close to their net income as possible.
· Is guaranteed renewable.
While being self-employed means taking calculated chances, there’s no need to take risks with a paycheck. Get in touch with us anytime for information and advice about communicating the importance of adequate disability insurance with your clients. We’re always happy to help.