Are You Overlooking This Crucial Protection? Why Income Protection Still Deserves a Spot in Your Client Conversations
When was the last time you brought up income replacement with your clients? If you’re like many advisors, it may not be top of mind. Yet the risk of a disabling illness or injury that prevents someone from earning an income is far greater than most people realize—and often more financially devastating than premature death.
The “Income Multiplier” Most Clients Don’t See
Your clients’ ability to earn an income is arguably their greatest asset. It funds their mortgage, education savings, retirement plans, lifestyle—everything. Without it, their entire financial plan unravels.
A 35-year-old making $100,000 a year today stands to earn roughly $3 million before age 65. Protecting that stream of income is just as critical as protecting the value of a home or investment portfolio.
Why Income Protection Gets Overlooked
Many advisors shy away from disability insurance because:
✅ It can be perceived as complex
✅ Clients think “it won’t happen to me”
✅ It’s easier to focus on life insurance or investments
But the numbers tell a different story. The odds of a long-term disability lasting 90 days or more before age 65 are about 1 in 4. That’s far higher than the chance of premature death.
Why This Matters Right Now
The current environment has made income protection planning even more relevant:
- Rising costs of living mean most families rely on two incomes.
- Small business owners and high-income professionals often have coverage gaps—group LTD plans (if they exist) rarely replace more than 40-60% of income, and they may not cover bonuses or commissions.
- Many policies haven’t been reviewed in years and may no longer align with earnings or lifestyle.
Tips for Starting the Conversation
Disability insurance isn’t just about selling a policy—it’s about protecting your client’s ability to achieve their goals. Here are three simple ways to open the door:
- Ask about their income protection plan:
“We’ve done a great job protecting your family with life insurance—what would happen if an illness or injury kept you from working for a year or more?”
- Highlight existing gaps:
“Your employer plan covers up to $5,000/month, but your current expenses are around $10,000/month. Would it make sense to explore filling that gap?”
- Frame it as peace of mind:
“This is about making sure you and your family can keep your lifestyle if something unexpected happens.”
A Strong Opportunity for Advisors
From an advisor perspective, Income Protection can strengthen your value proposition and deepen client relationships. It also helps diversify your practice beyond investments or life insurance. Carriers have continued to innovate, offering more flexible products, streamlined underwriting, and valuable riders like student loan protection or residual benefits.
✅ Next Step for You:
If you’d like to revisit disability insurance planning—whether it’s a client-by-client review, marketing strategy, or case design help—reach out. We’re here to support you with illustrations, carrier insights, and ways to position DI so your clients truly see its value.
