Often times the initial thought when the word “disability” enters a conversation is, “It’ll never happen to me.”
As most of us involved in the disability insurance (DI) industry know, there is a real disconnect between a person’s perception of a disability and what a disability insurance policy provides them. I have found the key to getting clients on board is to emphasize that DI is not ultimately about devastation, it’s about protection. It’s to protect their future income, the lifestyle they enjoy, and ultimately their dreams and goals in the event of a disabling accident or illness.
1. Heightened awareness due to PPACA
With the Patient Protection and Affordable Care Act (PPACA), more employees are asking questions about their health and medical insurance. While medical insurance is a valuable tool for putting us back together again after an unforeseen accident or illness, it only goes so far. It doesn’t address wellness, nutrition, lifestyle and rehabilitation.
2. Shift in responsibility
There has been a major shift in responsibility from employer-provided benefits to employee-responsible benefits. The employee is accountable for providing the benefits they require for themselves and their families. The employer might provide a platform, a match or a flat dollar amount, however, we have entered the personal responsibility century. For example, most pensions have disappeared so people will have to create and take action for their own retirement funding. An employer may provide the platform, such as a 401(k) plan for retirement funding, but the employee is responsible for the contributions.
3. Increase in Gen Y
We have a huge tidal wave of Gen Y members coming into the workforce by the year 2020. There are 25 million baby boomers who make up more than 40 percent of the U.S. labor force that will be exiting the workforce and leaving many jobs to be filled, according to The Office of Disability Employment Policy (ODEP).