There has long been a prevailing theory in the disability income (DI) industry that during recessionary economic times, it is easier for consumers to see the real impact of a loss of income. Layoffs, demotions, retirement portfolio reductions, loss of housing equity, and business slowdowns all affect an individual's income. Therefore, conventional wisdom concludes, it should be easy to draw the parallels with a similar loss of income if one is disabled. This, in turn, should lead to more consumers understanding the value of DI coverage.
In a sense, that is true. However, it is equally true that for people going through job turbulence or fearful that negative income issues are just around the corner, a sort of decision paralysis takes over.
Sure, they can more clearly see the protection DI insurance offers, but the coverage costs money — money that people are afraid to spend because more difficult times might lay just ahead. The value of DI coverage gets lost amid the uncertainty and fear generated by a weak economy.
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