Learn how to model a disability event in your client's plan and determine the correct amount of coverage they need.
Transcript
In this video, we will be walking through the Disability Insurance Insight in Voyant.
We’ll use Maya and Peter Coleman as our example clients. They’re in their mid-50s, and at first glance, it looks like they’ll be able to meet their retirement goals. However, their liquid assets are nearly spent down to zero by the end of the plan, leaving little room for unexpected life events.
To explore this, let’s go to the Insights tab and scroll down to the Disability Insurance Insight.
We’ll run this for Maya first. In the Advanced Settings, we’ll set “Continue receiving employment income while disabled” to Never, and choose a duration of 3 years. Then, click Get Started.
Looking at the results, we can see that a disability event would create two years of additional shortfalls in their plan. Hovering over the bars in the chart, we see shortfall amounts of $54,000 and $181,000 in those final years.
Comparing this to their existing plan, we can also view the cash flow differences. Under the Assets tab, we can see that in this scenario, their liquid assets would run out by 2055.
This may be a good opportunity to have a conversation with clients about adding disability insurance. With this protection, they could have greater peace of mind that unexpected costs would be covered.
I hope this was helpful! If you have any questions, you can always click the client name in the top right and select Request Support.