Disability Insurance: Are Your Clients Truly Protected?

Opiela, Nancy
April 2004
Journal of Financial Planning;Apr2004, Vol. 17 Issue 4, p40
Academic Journal
The article focuses on the views of several financial planners, active in the field of disability insurance, on the type of disability insurance coverage which is needed by clients and how to convince them that is in their best interests. A research by The Hartford has found that more than 40 percent of full-time employees do not have coverage in the event of a short- or long-term disability. Of those with coverage, 27 percent do not know what losses their benefits would cover. This is especially troubling when, according to The Hartford, one-third of U.S. citizens will find themselves disabled for at least 90 days during their working years. In the experience of Cory Chmelka of Capstone Wealth Management in New York, 99 percent of clients have inadequate coverage under a group policy. Chmelka says it is his responsibility, as a trusted advisor, to educate clients and to help them understand that if they become disabled, their current group coverage may not be adequate. Across the board, planners who are experienced with disability insurance and those just beginning to sell it say cost is always the stumbling block. Planners often begin the discussion of disability insurance by noting that they, too, have the coverage.


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