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Why You Need Disability Coverage

Many of your clients believe they have a solid financial plan to reach their goals, including maxed-out retirement savings and life insurance protection for the family in case of premature death.  But it is likely they have overlooked one crucial factor in their planning: the risk of injury or illness preventing them from working. 

How many can afford to forego a paycheck for a few years (or even a few months)?  Most clients would find it difficult to pay their bills and would be forced into expensive credit card or loan debt or even into raiding their retirement accounts. “Disability insurance is one of the least talked about types of insurance.  But from a financial planning standpoint, protecting one’s income is critical,” according to noted CFP Peter Creedon.

A number of your clients might have some workplace disability coverage with premiums paid by their employer.  But that generally is not adequate coverage to replace enough of your income to meet your needs.  It is currently easier for people who are self-employed, work at home or as independent contractors to purchase individual income protection, assuming they can demonstrate stable income.

Learn about supplementing workplace coverage with individual income protection policies and how your clients can qualify in this Kiplinger article by Contributing Editor Kimberly Lankford.