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Why Federal Employees Desperately Need Income Protection

Posted by Dan Steenerson on Tue, Dec 11, 2012 @ 11:12 AM

 

Income-Protection

It’s impossible to watch a newscast these days without hearing about the looming “fiscal cliff.” With Congress seemingly at a stalemate on crucial tax increases and spending cuts, it’s anybody’s guess what will happen. When you combine that with the uncertainties of the new health care law, it’s easy to understand why many consumers and businesses are on edge.

But there’s one group of workers who could be in for a rude awakening even if the fiscal cliff is averted:  federal employees.

Many federal employees face a deadly income DROP when they experience a disabling illness or injury. The worst part? They don’t even know it’s coming. They wrongfully assume their “great” benefits have them covered.

Bottom line – these people need income protection . . . NOW!

Federal workers have already endured pension cuts and a two-year wage freeze, so they’re already starting to wonder what the future holds. Most federal workers assume that their benefits remain strong, but that’s definitely not the case when it comes to income protection.

Did you know …

  • FERS employees have to wait six-months before filing a disability insurance claim?
  • First-year benefits are only 60 percent of gross pay and they are taxable?
  • In the second year of disability and beyond, benefits drop to just 40 percent – still taxable?

If you do the math, it’s a scary proposition. An employee earning take-home pay of $3,750 monthly could be forced to try to survive on $1,500 in the second year of disability!

This is a golden opportunity for you to show federal workers how supplemental income protection insurance can help them fill the gaps that could potentially ruin them. You’ll not only close more sales, but help more federal employees sleep better at night . . . regardless of what Congress decides.

For more information, download a copy of our free client handout, Exposing the GAP in the FERS Disability Insurance Program.”  Need a DI quote? Use our convenient online quote engine.

Topics: disability insurance, income protection, DI quote, supplemental income protection, FERS disability insurance program