Our families are the most important things in our lives. If they needed us, we’d be there in a heartbeat to help, and, according to the Family Caregiver Alliance, for approximately 43.5 million people in the U.S. that means providing unpaid caregiving services.
Caring for a family member can cause physical, emotional and financial stress. Many caregivers struggle with trying to maintain a job, keep up with household and family duties, and provide care for their loved one. In a recent FMLA survey, 62 percent of employees taking FMLA leave with partial or no pay reported some financial difficulties and 30 percent reported severe financial difficulties.1
There are disability income protection carriers that have solutions to help ease the burden of uncompensated family caregiving. There are policies that will pay the insured on a disability income protection policy a monthly benefit when the insured is not working or has reduced hours and a loss of income while taking time away from work to care for a family member with a serious health condition. So, in essence, this income protection extends from the insured to the insured’s family. Family members included in this type of coverage include a parent, child (including adopted children and stepchildren), spouse, domestic partner, and children of a domestic partner.
So, to put some perspective on the need for this type of protection here are some statistics:’
- Approximately 43.5 million caregivers have provided unpaid care in the last 12 months.
- Upwards of 75 percent of all caregivers are female.
- Nearly 50 percent of caregivers are between 18 to 49 years old.
- Family caregivers spend an average of 24.4 hours per week providing care.
- The average duration of a caregiver’s role is four years.
The need is being identified by some of the biggest employers in the country. In 2016, Nike and Deloitte had both added paid caregiving leave as an employee benefit, and the state of New York has mandated paid caregiving leave to begin in the year 2018. Paid caregiving leave is on the cusp of becoming a more mainstream benefit offered by employers. In the meantime, it can be provided as a built in feature of an individually owned disability income protection policy.
This type of benefit can also be provided when working with employer/business owner clients who wish to follow the lead of large organizations like Nike and Deloitte. Business owners will be able to offer their employees this form of paid caregiving leave through a GSI (Guaranteed Standard Issue) plan.
Another unique differentiator available in the disability marketplace is a non-disabling injury income feature. This feature provides a benefit to the insured if they were to suffer an injury, while having an in-force policy, that requires medical treatment as prescribed by a physician. It also includes repair to natural teeth as prescribed by a dentist. Clients are more active at older ages than they ever have been and this feature helps to protect them from a financial loss due to an injury. An injury that won’t necessarily keep them from earning an income, but will cause a financial burden. This feature is appealing to any clients that participate in any type of risky behavior that could result in an injury. Think of the adult sports league community. Softball and turned ankles. Hockey and split lips or dental issues. Skiing and hurting a knee. Also consider the motorcycle riding community and the potential for an injury from a fall. All of these have the potential to be covered under the non-disabling injury provision of a disability income protection policy.
This benefit is even more beneficial when you consider that, under the ACA, many working Americans have had large increases in health care premiums and deductibles have been moving up dramatically. Clients who have an injury would more than likely be paying out of pocket for an injury sustained that didn’t keep them out of work. With this feature built in to a disability income protection policy, it takes the financial pain out of getting injured and keeps your clients in the game.
Other unique characteristics of income protection are target market specific. One such market that tends to get overlooked is the middle market. There are carriers and products in the marketplace that cater specifically to blue/grey collar occupations and also provide coverage to traditionally challenging occupations to underwrite. Occupations like long haul drivers, dental hygienists and cosmetologists can be difficult to place unless you are using the correct carrier. There is protection for these types of clients and needless to say, from a numbers standpoint, there are many more opportunities out there. Also, the need for disability income protection, it could be argued, is more important to this demographic than the professional marketplace due to the fact that an injury or disability that prevented a middle market person from earning a paycheck would have a greater impact on their cash flow.
The opportunities in the income protection marketplace are plentiful. Knowing the distinguishing features of policies and the demographics of your target market will allow you to take advantage of the possibilities. That said, we all know that you can’t know everything, and you need valuable resources to help navigate the waters of any type of financial planning strategy. Use the resources that you have available and align yourself with an expert in the field who can stay informed and educated on the various features and unique differentiators that can help you to place your case. Disability income protection is a much needed financial planning tool, and needs to be a part of every client’s strategy. Every other part of that plan will be affected in the event of a disability. What should never happen is for you to leave your clients’ plans vulnerable when you have the expertise available to find the right coverage, with the right features, for the right occupations, right at your fingertips. Use a specialist organization to help you help your clients.
Source:
1. Family Caregiver Alliance, Caregiver Statistics: Demographics. Accessed September 1, 2016
