The One Financial Risk Clients Can’t Afford to Ignore

Income protection isn’t just about having a safety net—it’s about maintaining financial independence when life takes an unexpected turn. Disability insurance is often the missing piece in financial planning, ensuring that clients can cover expenses and stay on track with long-term goals if they lose their ability to work. 

This article explains

1. Why income protection is a must-have in 2025,

2. Common objections clients have, and

3. How to position disability insurance as a core financial strategy.

Why Income Protection Matters Now More Than Ever

For many professionals, financial planning revolves around investments, retirement savings, and homeownership. But one fundamental risk is often overlooked—what happens when a paycheck suddenly stops? A temporary or permanent loss of income due to illness or injury can derail years of careful financial planning. Disability insurance is the key to keeping financial goals on track, ensuring that hard-earned assets and future security isn't undone by unforeseen circumstances.

Yet, income protection is still an afterthought for many individuals. Why? Often, they don’t fully grasp the impact of losing their ability to earn. As advisors, educating clients about the reality of income loss and the importance of disability insurance is essential.

The Hard Truth: Most Americans Are Unprepared

• More than 1 in 4 of today’s 20-year-olds will experience a disability before they retire. (Source: Social Security Administration)

• The average long-term disability lasts 34.6 months, meaning most people will need nearly three years’ worth of savings to replace lost income. (Source: Council for Disability Awareness)

• 40% of Americans would struggle to cover an unexpected $400 expense. (Source: Federal Reserve) 

Despite these risks, only 14% of Americans have disability insurance outside of employer-provided coverage. This gap in protection leaves millions vulnerable to financial hardship.

Common Client Misconceptions—And How to Address Them

“I’ll just rely on my savings.”

Savings are a crucial part of financial planning, but they aren’t designed to replace years of lost income.

Consider this:

• A professional making $100,000 a year who experiences a three-year disability would need $300,000 in savings—not accounting for medical bills, rehabilitation,or inflation.

• Most Americans don’t have anywhere near that saved. Even those with an emergency fund typically have three to six months of expenses, far less than what’s needed for long-term income replacement.

Instead of draining savings, disability insurance ensures a steady paycheck continues, protecting assets and long-term financial plans.

“I have coverage through work.”

Employer-provided disability insurance is a great starting point, but it often only replaces 40-60% of an employee’s salary—before taxes. For high-income earners, this leaves a significant coverage gap.

A supplemental individual disability insurance policy bridges the gap, providing:

• Higher income replacement percentages

• Portability (it stays with the client even if they change jobs)

• Customizable benefits and riders

“I’m healthy, so I don’t need it.”

Disability isn’t just about accidents. The majority of long-term disabilities are caused by illnesses like:

• Cancer

• Heart disease

• Musculoskeletal conditions (e.g., back injuries, arthritis)

Since disability insurance premiums are based on age and health, the best time to secure coverage is when a client is young and healthy. Waiting until a medical issue arises can mean higher rates or disqualification from coverage.

Framing the Conversation

How to Make Income Protection a Priority

1. Lead with Lifestyle, Not Fear

No one likes to imagine worst-case scenarios, but they do care about their lifestyle. Instead of using fear-based tactics, frame disability insurance as a tool for maintaining their current standard of living.

Ask:

• “If your paycheck stopped tomorrow, how long could you maintain your current lifestyle?”

•  “Would you be able to keep saving for retirement without an income?”

These questions shift the conversation from what could go wrong to what can be done to ensure financial stability.

2. Use Real-World Scenarios

A professional in their 30s may not relate to the idea of a disability, but they might connect with a real-life story of someone in their industry who faced an unexpected medical event.

Example: A 38-year-old attorney was diagnosed with multiple sclerosis. Initially, she thought she could push through, but within a year, fatigue and mobility issues made full-time work impossible. Without long-term disability insurance, she had to rely on savings and eventually liquidate retirement accounts. Had she secured coverage earlier, she would have maintained financial independence.

3. Emphasize Flexibility and Customization

Many clients assume disability insurance is rigid and expensive. But customization allows policies to be tailored to specific needs and budgets. 

Options include:

• Adjusting benefit periods (e.g., short-term vs. long-term disability)

• Choosing elimination periods (how long before benefits start)

• Layering employer and individual coverage

• Adding riders like cost-of-living adjustments and partial disability benefits

The key is demonstrating that disability insurance is an investment, not just another expense.

Why 2025 is the Year to Take Action

The financial landscape is shifting, and economic uncertainty makes income protection more important than ever. Rising healthcare costs, evolving employer benefits, and increasing rates mean that waiting to secure disability insurance can cost clients more in the long run.

Key Takeaways:

• Disability insurance isn’t optional—it’s essential for financial stability.

• Common objections (like relying on savings or employer coverage) leave major gaps.

• The best time to buy is now—before a client’s health changes or rates increase.

Protect Your Clients’ Future with Secura Consultants

At Secura Consultants, we help financial professionals integrate disability insurance into their practice seamlessly. 

Whether you need:

• Case design support

• Underwriting expertise

• Marketing strategies

We’re here to help. Let’s work together to protect your clients’ financial future—contact us today.

www.securaconsultants.com