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The 40% Pay Cut


When talking to clients, advisors often discover that the client is covered under a Group LTD plan at work. Clients often think that they are in good shape when it comes to having their income protected. This idea is a great way to expose the gap that the client needs to fill.


Advisor: "Dan, there is some good news and some bad news regarding the disability insurance coverage you have through work."

Client: "What do you mean?"

Advisor: "The good news is that if you become sick or hurt, you would receive 60% of your income. The bad news is that would mean you would take a 40% pay cut."

"What impact would it have on you and your family if you took a 40% pay cut?"


House - $800,000

Car - $70k

Income - $3,750,000



Instead of trying to convince the client that he needs to buy a supplemental DI policy, the advisor is allowing the client to discover the impact of the situation and then begin the conversation on the importance of an individual policy.

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