A Guest Blog by Andrea Blanchard, ALMI, ACS, Regional Sales Manager, Assurity Life Insurance Company
There I was, excitedly waiting to take a piece of candy from Mrs. Bush’s treat bag. I love candy!! Mrs. Bush was my first grade teacher and all-time favorite. Yes, my turn! I walked up to the bag, slowly peaked in, and selected what was surely the finest treat. However, my joy was soon dashed by a series of mixed emotions. The kid right after me grabbed a whole handful of candy – and got to keep it all! Why the nerve of that boy! So greedy! Why didn’t I think of that?! I will never forget that moment. Up until then, I NEVER dreamt of taking or asking for more than what was presented.
Over the years I realized it’s not wrong to want more. Wanting more is one of the fundamental forces behind passion and purpose. So, what’s my passion? Well, those who know me might say it’s still candy. Seriously, I recently celebrated my 39th birthday and it was full-on candy themed with giant 6’5′ lollipop decorations. While I do enjoy candy of all types and flavor, it’s not my passion. What gets me up in the morning and keeps me going is my drive to help other people.
Insurance is a wonderful and highly under-rated solution that can accomplish many goals. A typical family has insurance on their car, house…even their cell phone! What’s alarming is these individuals rarely think about their most valuable asset, the ability to earn an income. Many are leaving their financial well-being and that of their loved ones at risk. A 2014 study by the Council for Disability Awareness showed that overall, only 43% of working consumers report having income protection. And why is this? The two most common obstacles are “it’s too expensive” and “it won’t happen to me.”
Not having protection can be even more expensive. Would turning to retirement accounts, educational funds, or other savings place your client’s financial goals at risk? If your client were to become hurt, sick and unable to work – wouldn’t they still want more out of life? Income protection is the foundation of a solid financial plan. If cost is a concern, a plan can be tailored to fit the exact needs of your client. Adjustments can be made to the benefit period, elimination period, base coverage or riders to reduce the premium.
As far as “it won’t happen to me” goes, there is a fantastic solution. It’s the Return of Premium rider. If a disability does not occur – that’s great! Your client will get their money back and was fortunate enough to never experience the physical, emotional or financial hardship of not being able to work. Here’s a case study:
Mrs. White, the Nurse
Occupation Class: 3A
Family: Primary breadwinner, married with two kids
Monthly benefit: $3,430
Monthly premium: $103.90 (2% of salary, includes riders – $56.09 without return of premium rider)
- $1,700 base and $1,730 Supplemental DI Rider
- 90-day elimination period and a 2-year benefit period
- Guaranteed Insurability Rider – provides options to increase coverage in the future
- 2 years Residual Disability Benefit Rider – may allow for continuation of benefit, even if part-time work is resumed
- Retroactive Injury Benefit Rider – additional benefit paid when disability is due to an injury
- Return of Premium Benefit Rider
ROP amount at Age 65 (retirement) is $43,154!!
The bottom line is, people are never saving enough. This is a solution that helps your client protect their income now or provide money at retirement. When I was in first grade, I never really thought about asking for more than what was presented. Most of your clients probably don’t realize return of premium is an option. Give them the option of grabbing that whole handful of candy! Now why didn’t I think of that?!
Andrea Blanchard is the Southeast Regional Sales Manager for Assurity Life Insurance, a mutual carrier based out of Lincoln, Nebraska. With over 16-years of experience in the industry, Andrea is dedicated to helping agents grow their business by developing strategies and customized solutions that uncover new opportunities in the middle income market. Andrea can be reached by telephone at 800-276-7619, ext. 4533. Click here to Connect with her on LinkedIN.