Where does DI fit within the financial planning process?

Financial planning begins and ends with income planning. Unless you first protect a wage earner’s income, there cannot be a financial plan! A financial plan is not a financial plan without involving disability insurance.

Why is Group LTD inadequate?

With Group LTD, you are just a tenant. You are not in control because you do not own the policy. It can be taken from you in an instant. Your employer may give it up. The insurer may decide to stop insuring the group. You are at their mercy. Additionally, Group LTD typically only covers your base salary, therefore bonuses, commissions, incentives, deferred compensation, stock options and pension contributions are generally not covered. In most claim scenarios, people are very disappointed with the inadequacy of Group LTD.

How does DI differ from Long Term Care?

Simple- DI pays you and LTC pays someone else who is providing the care service.

How does DI differ from Life Insurance?

When it comes to income replacement and asset conservation, there is no difference. The difference between the two types of insurance is you’re either above or below 6 feet of dirt. The main concept to think about is that the chances of becoming disabled are much greater than dying prematurely.

How much DI should I have?

You should have as much DI as possible. No less than 65% of your gross income is considered adequate. We have not met anyone on claim that has told us that their benefit is more than enough. Unfortunately, when you’re disabled, the truth is always the opposite. There is never enough money. This is why Supplemental Disability Insurance is often necessary to adequately protect a person’s income.

Why don’t all financial advisors sell DI?

A good financial advisor will sell DI, so that should be a clue when choosing an advisor. Life insurance is an easier sell. People actually ask to buy Medical Insurance. A good advisor will offer proper advice and not worry about which product is harder to sell because he or she knows it is the right thing to do.

Petersen International Underwriters is here to assist with your clients’ Disability Insurance needs when they cannot be met by the traditional DI carriers. We can when others can’t or won’t.