Modern day Disability insurers are forever fearful of accidentally over-insuring their clients. This is particularly true when dealing with highly compensated clients.
In the past, the income replacement percentage was often subjectively determined by a particular carrier’s underwriter.
As of late, the Council for Disability Awareness has tried to modernize the approach by implementing a statistical analysis approach that determined the need to replace at least 65% of income.
Traditional carriers often meet and sometimes surpass the need for low to middle income earners, but fall short with incomes greater than $150,000.
Whether your client is generating a modest income or is highly compensated, there is an essential need to provide adequate income protection to help sustain an individual or family’s lifestyle during periods of non-productivity or severely diminished cash flow due to a short or long-term disability.
By stacking additional income protection on top of the coverage the traditional carriers provide, the client’s ability to maintain their current lifestyle turns from fiction to reality.
Contact your dedicated DI Specialist today to learn more about how you can offer your clients a complete income protection plan.