Why Disability Insurance Matters

Most clients understand the importance of life insurance, but far fewer realize that a disability is more likely to disrupt their financial plans than an early death. A sudden illness or injury can prevent clients from working, putting income, savings, and retirement goals at risk. As a financial advisor, you can help them prepare for this often-overlooked risk.

 

 

Ideal Client Profiles

Disability insurance is especially important for clients who:

• Rely heavily on earned income to support their family and lifestyle
• Are self-employed or business owners with limited employer benefits
• Work in professions where an injury could prevent them from earning (e.g., medical, legal, or technical careers)
• Are in their peak earning years (ages 30–55)

 

 

Case Study: Protecting a Young Professional

A 38-year-old attorney with a growing practice wanted to ensure her income was protected if she became unable to work. By implementing a disability insurance policy, her advisor provided coverage that replaced a portion of her income—allowing her to maintain her mortgage payments and retirement contributions during recovery.

 

 

When to Introduce the Topic

The best time to bring up disability insurance is before clients face a health issue. Advisors should weave the conversation into broader risk management discussions, ideally during financial plan reviews or life events such as:

• Buying a home
• Starting a family
• Launching or expanding a business

 

Advisor Takeaways

Disability insurance ensures that clients’ financial goals remain on track even if life throws unexpected challenges their way. Advisors who raise this conversation build deeper trust and demonstrate a commitment to protecting clients’ long-term security.