Income Protection (10yr RnC)

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PROBLEM 

The primary area of concern is income protection. Now (client’s name), have you given any thought as to what would happen if you passed away yesterday...? For example, you were on your way home from work  and get into a very bad car accident, or god forbid a heart attack or stroke, how would this leave (spouse’s name) and the children (If applicable) financially? (WFA) 

When something happens to you during your working years, regardless of the cause of death, your paycheck stops. But the expenses for the family stay pretty much the same… and this is a huge issue for a lot of our members. So, (client’s name) if you make X amount per month, and (spouse’s name) you make around X amount per month, what would you say your monthly expenses are? What are you left with at the end of the month roughly? (Get budget after expenses and ask) “So (spouse’s name), if your family was to lose (client’s name) income of X, your family is going to be in an extremely challenging financial situation. Wouldn’t you agree?  

SOLUTION 

That’s why they’ve set up a benefit called “paycheck protection”. Now, when something happens to you, 

(spouse’s name) is going to continue to receive (client’s name) paycheck every single month for the next X years. The reason they chose (1/3/5) years is because you need a decent amount of time to adjust. A couple months just isn’t enough time. Right? 

Now, let me ask you, you do have life insurance, don’t you? Hopefully three hundred to Four Hundred Thousand Dollars! The (group) realizes that most of the members do have other or general life insurance. But here’s what happens in the typical situation – when you die, your family immediately has to start dipping into those lump sums.  First, for reimbursement of burial, estate, and miscellaneous expenses. And then, because your paychecks have stopped coming in, your family must keep dipping into the savings to pay bills and put food on the table, right? And then a year or two later, all that money has disappeared and is completely gone! That is why they have recommended this paycheck protection. Now you’ll be in a position that when something does happen to either of you, the other can take any savings and insurance money you might receive and get it invested for your future retirement and your children’s education. Does that make sense?