HEALTH PRODUCERS: Don’t Disable Your Client’s Health Coverage

By The Brokers Source

In today’s uncertain economic and healthcare climate, few conversations with clients carry as much weight—and as much potential impact—as those around health insurance. For health producers, providing individual health insurance is no longer enough. It’s just half the story. There’s a crucial element missing from most portfolios that leaves families dangerously vulnerable: Disability Income Insurance (DI)—specifically coverage that protects your client’s ability to pay for their health insurance premiums in the event of a disability.

If you’re not including a DI strategy in your health planning discussions, you’re leaving your clients exposed to a scenario with potentially devastating financial and emotional consequences. Let’s dig deeper into why this is the case, and how you can elevate your service—and your client’s protection—by closing this critical gap.

The Hidden Threat: What Happens When Disability Strikes?

Imagine a 45-year-old father, the primary breadwinner, with a spouse and two children. He’s done the responsible thing: secured a fully underwritten family health insurance plan costing around $600/month. He’s paying full price, and he’s happy to invest in peace of mind for his family.

Then life throws a curveball.

An accident. A sudden illness. A debilitating diagnosis. Suddenly, he can’t work. His income dries up overnight.

And now? That $600 health insurance premium that once provided peace of mind has become a burden—a threat, even. Without steady income, how long can he continue paying it? A few months? Maybe less?

Worse still, this is happening at the precise moment when he needs that health coverage the most. Doctor visits. Tests. Medications. Rehabilitation. Possibly even surgery. These costs will skyrocket, just as his ability to pay plummets.

It’s a nightmare scenario. But it’s not rare.

Why Most Health Plans Are Incomplete

As a health insurance producer, you’re providing a vital service by helping clients secure high-quality medical coverage. But unless you’re pairing that with Disability Income Insurance (DI) that includes a benefit equal to or greater than the health insurance premium, you’re leaving your clients dangerously unprotected.

Think about it: health insurance is only effective if it stays active. If premiums go unpaid during a disability, the policy lapses—and the coverage disappears. It’s a paradox. Your clients buy health insurance to protect themselves during medical crises… but that same crisis can cause them to lose the very policy they depend on.

That’s why we urge producers: Don’t disable your client’s health coverage. Pair every individual health policy with a DI plan that includes a “Waiver of Health Insurance Premium” feature or an equivalent monthly benefit. It’s the missing piece in most health planning strategies—and the key to providing complete coverage.

Real Numbers, Real Risk

Let’s break it down with real-world math.

• Average monthly individual health premium (for family coverage): $500–$600

• Duration of an average long-term disability claim: 2.5 years

• Total health insurance premiums paid during disability: $15,000–$18,000

Now consider how most group LTD (Long-Term Disability) benefits work:

• Most replace only 60% of gross income

• Benefits are taxable if premiums are employer-paid

• That reduced amount must cover all living expenses—including mortgage/rent, utilities, groceries, and yes, health insurance premiums

This puts enormous pressure on a disabled individual’s limited income stream. They’re often forced to choose between essentials. And sadly, health insurance premiums are often among the first to go.

Savings? Sure. But for How Long?

You might think, “Well, maybe the client has savings.”

Possibly. But let’s play that out.

A few thousand dollars saved might last a couple of months—maybe three if they’re frugal. But when disability strikes, expenses usually go up, not down. Between lost wages and added medical bills, savings evaporate quickly.

By month four, that family is scrambling. They may face lapses in coverage, gaps in care, or even unpaid medical bills. If a client is forced to drop their health insurance due to disability, it can have long-lasting repercussions—including requalification challenges, penalty periods, or loss of insurability.

A Smarter, More Sustainable Solution

What’s the answer?

Offer an individual Disability Income (DI) policy that includes a benefit to cover health insurance premiums.

Let’s say the client purchases a DI plan that provides a monthly benefit of $600—equal to the cost of their health insurance premium. This ensures that even if they become disabled, they have dedicated income to keep their policy in force.

• Simple math, powerful protection.

• DI premiums for $500–$600 in monthly coverage are affordable, even for clients with modest budgets.

• Simplified underwriting programs mean fast approval and minimal red tape.

• Many DI carriers allow for waiver riders or customized benefit amounts that align perfectly with health insurance costs.

The Employer Plan Dilemma

But what about clients with employer-sponsored health insurance? They don’t pay the full premium, so this isn’t relevant… right?

Wrong.

Many employer health plans require employee contributions, and in the event of a long-term disability, continuation of coverage is not guaranteed—especially if the individual transitions to COBRA or loses group eligibility.

COBRA can be prohibitively expensive. Often, the full premium plus a 2% administrative fee becomes the employee’s responsibility. That means a former employee could be paying $1,000/month or more to maintain family coverage—without their former paycheck to support it.

If you don’t plan for this, your client’s safety net could vanish just when they need it most.

Why It’s Your Responsibility as a Producer

As a health producer, your job isn’t just to sell policies—it’s to solve problems.

Your clients rely on your expertise to help them navigate complex health and financial landscapes. That means thinking beyond the obvious, anticipating risks, and creating holistic strategies that protect them in real-world situations.

Selling health insurance without accompanying DI protection is like selling a car without brakes. It might look good on the surface—but when the unexpected happens, your client is left without control.

You wouldn’t want that for your family. Don’t allow it for your clients.

Turn Key Conversations Into Total Coverage

This isn’t about upselling—it’s about uplifting. When you introduce this strategy to clients, frame it as completing their plan, not complicating it.

Here’s how you might position it in conversation:

“We’ve got you covered with health insurance—but I’d be doing you a disservice if I didn’t show you how to keep that policy safe if something happens to your income. Let’s make sure that in the event of a disability, your health plan stays active—so you’re protected when you need it most.”

Most clients are receptive—often grateful—for the insight.

And the best part? The additional DI benefit is often surprisingly inexpensive and easy to secure, especially when underwritten in tandem with health coverage.

Underwriting Made Easy

Here’s what you need to know about implementing this strategy:

• Simplified Issue DI Products: Many carriers offer no-exam policies up to $1,000/month in benefit.

• Fast Turnaround: Applications can be processed in days—not weeks.

• Flexible Riders: Add features like residual disability, partial disability, and future increase options.

• Custom Fit: Tailor the DI benefit amount to match your client’s actual health insurance premium.

The underwriting bar for DI coverage—especially at lower benefit levels—is often low. If a client qualifies for a fully underwritten health plan, they’re almost always a good candidate for DI.

The Bottom Line: Don’t Just Sell. Shield.

Your clients trust you to help them protect what matters. By pairing individual health coverage with DI, you’re going beyond basic benefits—you’re providing true security.

Here’s the core takeaway:

• If your client is paying for individual or employer-sponsored health insurance…

• And they would face difficulty maintaining that coverage in the event of disability…

• Then they need a DI plan that includes a benefit to cover that premium.

Anything less is leaving their plan unfinished—and their future unprotected.

Final Thoughts: Health Producers, It’s Time to Level Up

The world of insurance is evolving. Clients are more informed, more cautious, and more in need of trusted guidance than ever before.

Health insurance alone is no longer sufficient. Today’s comprehensive protection plan must also address income protection—especially when it directly impacts the ability to maintain healthcare.

Let your service be known not just for selling policies, but for solving real problems. Educate your clients. Equip them with smart strategies. And ensure that when life throws the unexpected, they’re not just covered—they’re fully protected.

Don’t let your clients lose their health insurance when they need it most.

Protect their coverage. Protect their income. Complete the plan.

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