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THE “THIRD-TIER” OF INCOME PROTECTION FOR TOP WAGE EARNERS

The need for income protection in this country is clear – statistics show a common lack of personal savings amongst the majority of households. And top earners are not immune.


Although major corporations typically provide Disability Insurance (DI) through employer sponsored programs or voluntary employee-funded group DI plans, most physician and executive programs insufficiently limit benefits to a fraction of earned income – creating a great financial shortfall for high-income individuals.


The answer? A prescription of raised limits of DI throughout the market. A high-cap excess personal DI is a great way for physicians, attorneys, accountants, and white-collar executives to find appropriate levels of economic safeguard. 


The plan can be as simple or comprehensive as your clients’ needs require.


Securing individual DI is another obvious step – but again, traditional domestic disability carriers frequently fall short with their maximum issue limitations. If you have any clients or prospects who are making over $250,000 annually, they should be insured at least up to 65% to 75% of their earnings. Their protection needs may not be met by group coverage even with the addition of a layer of individual DI. The bundling of group and individual DI alone is not always a sufficient solution.

 

As a life/health insurance advisor, you know better than anyone that a sudden injury or prolonged illness can happen to anyone at any stage of their professional career.

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