Finding # 3 : Assumptions on acquiring a long-term disability
The idea of a young adult becoming disabled and potentially being out of work is much less farfetched than most consumers believe . Forty-seven percent of Americans with financial advisors estimated that only one in ten 20-year-olds would acquire a disability , so it ’ s crucial to make your clients aware of the potential risk .
Set aside time to meet with your clients , reevaluate their current policies and make recommendations on what they may want to learn more about due to the current environment . This is especially important when working with younger clients , as they ’ re less likely to consider acquiring a long-term disability . Keeping your clients up to date on what risk factors they may be affected by will help them understand the necessity for the coverage that you recommend .
Finding # 4 : Pandemic ’ s impact on sales
The pandemic has brought many risk factors that used to be less of a threat to the forefront , making consumers more aware of needs they may not have been prioritizing or aware of . Since the pandemic started , there has been an increase in consumer interest in insurance – 41 % of the same survey respondents who had purchased a new insurance policy since the pandemic started said COVID-19 was a factor in their decision , and 51 % said it was their primary reason .
So , while consumers are becoming increasingly aware of their need for insurance in general , the more specific policies like longterm care and disability insurance may get lost in the process . It ’ s critical for financial professionals to be strategic in their advice while potentially receiving an influx of new clients and sales .
It ’ s up to you to keep your clients informed on their risk factors and provide them with the reassurance that they ’ ll be protected later in life . In doing so , you ’ ll not only establish deeper client relationships , but ensure their families and finances are protected well into the future .
69 % of survey respondents underestimated how many of today ’ s 20-year old ’ s will acquire a long-term disability at least one year before they retire .