Down Economy Can Push DI Sales Up
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So far, the 21st Century has not been kind to us in any economic sense. The bull market of the late 1990s has certainly stalled, and the months before and after September 11 have brought news of below average earnings, corporate layoffs, and ongoing 401(k) and other retirement income losses.
Agents who took advantage of the substantive stock market returns and sold vast amounts of variable life insurance are now scrambling for their next act.
Why not scramble to sell disability income insurance? Traditionally, this product has never been easy to sell, but during an economic downturn the need is far easier for people to see. What is a DI policy, after all, but a replacement of lost wages should an accident or sickness occur?
People who watch the business news and perhaps are working in an environment of cutbacks and downsizing can all too clearly see a scary future without a regular paycheck in it. How will they replace it? How will they pay for rock-bottom necessities? Job loss because of layoffs creates just this kind of frightening scenario.
Fortunately, laid off workers are likely to be healthy and therefore can presumably look for other work. It may take time, but it wont be for lack of effort.
Contrast that with someone with a medical problem who loses those same wages. What can the disabled worker do immediately about the loss of income? Depending on the extent of disability, he or she may not be able to seek work actively. There wont be an immediate opportunity to try to find something else.
Thus, as stressful as a potential layoff is, a person who develops a disability is in an even more fearsome circumstance.
What about the Americans with Disabilities Act? Doesnt that protect the job for the individual to return to work?
