Are You Protecting Your Income?

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1 Individual Disability Income Insurance Your Lifestyle and Retirement Dreams Depend on Your Ability to Work and Earn an Income Are You Protecting Your Income?

2 the importance of your INCOME and protecting it Have you seriously considered what could happen if you lost your income due to an illness or injury and couldn t go to work? Imagine how quickly personal savings, home equity or retirement accounts would diminish if used to replace your income over a long period of time? Many times we can be so caught up in our day-to-day lives that we don t even think that losing our primary source of income is possible. How would that impact you and your family? Would you be able to pay rent/mortgage, utilities, car payments, food, clothing and college tuition? Would you have to: -Rely on family? -Sacrifice health or life insurance? -Use cash advances from credit cards? How would you continue to save for your future needs? No matter how many working years are ahead of you, the choices you make now to safeguard your income can impact the plans you have for the years ahead. Do you have a plan to provide for your family if you are disabled and can t bring home the income you count on? Disability Income insurance offers solutions that can help ensure you and your family maintain a certain lifestyle, even if you re unable to work. Remember, if you can t work, you can t: Contribute to your 401k Contribute to Social Security Pay your bills

3 Why should you protect your income? Before you can answer this common question, ask yourself If I became too sick or hurt to work, could my family survive without my income? Does my family have the means to cover current debts and daily living expenses and continue to save if I could no longer work and earn an income? How much disability coverage do I have, including individual and group insurance? The financial consequences of a disability can be devastating. That s why many consider income protection essential for a solid financial plan. Know the facts Don t be misled by common myths surrounding individual disability income (DI) insurance Myth #1: It won t happen to me I expect to stay healthy. Fact: 44% say they have a 10% chance of becoming disabled in their working years. Yet the chances are actually about 30% that workers in their 20s will experience a long term disability prior to retirement. Council for Disability Awareness 2010 Consumer Disability Awareness Study Myth #2: Disability Insurance is too expensive. Fact: The average annual premium for individual DI insurance is typically 1 to 3 percent of what you earn. Myth #3: Government programs will take care of me. Fact: The problem with depending on Social Security or Worker s Compensation is that you may not be eligible for disability benefits or if you do qualify, there can be up to an 18 month waiting period Myth #4: I can always get disability coverage later. Fact: People usually don t get healthier as they grow older and coverage will cost more. Myth #5: I can rely on my savings. Fact: Even if you save 10% of your salary, a one-year disability could eliminate many years of savings. How long could you come up with $5,000, $7,500 or $10,000+ per month to cover your expenses?

4 The risk is real. Compared to things you might think about every day, the likelihood of you being disabled is much greater than you think Chance of winning the Powerball jackpot. 1 in 195,249,054 1 Chance of being killed on an airline flight on one of the top 25 safest carriers 1 in 9,200,000 2 Chance of being struck by lightning... 1 in 576,000 3 Chance of hitting a hole-in-one at 200 yards... 1 in 20,000 4 Chance of having a stroke in any one year 1 in Chance of using your homeowners insurance... 1 in 20 6 Chance of using your auto insurance... 1 in 15 7 Overall Chance of missing at least 90 days of work due to a disability. just under 1 in Multi-State Lottery Association, Powerball prizes and Odds (2010) 2 OAGback Aviation Solutions and Plane Crash Info Accident Database ( ) 3 Baer, G. Life, The Odds, Gotham Publishing (October 2003, most recent available) 4 Centers for Disease Control and Prevention, Stroke Facts and Statistics (2010) 5 International Organization for Standardization (ISO), Homeowners Insurance Losses, (2008 most recent available) 6 Highway Loss Data Institute, collision Coverage Insurance Losses in Years Since Introduction, (2008, most recent available) 7 America s Health Insurance Plans (AHIP), Baby Boomer Awareness of Disability Risk Study (2008, most recent available)

5 The Benefits: FAMILY: helping you maintain your current lifestyle and minimize sacrifices. CONFIDENCE: knowing you re doing what you can to help your family cope with the financial and emotional effects of a disability. SAVINGS: avoid withdrawing from retirement plans, investments, education funds or other accounts, so they can remain intact and able to grow. RECOVERY: in case of a disability, you can concentrate on getting better, returning to work and earning income. YOUR INCOME. THINK OF ALL THE WAYS YOU AND YOUR FAMILY RELY ON IT AND WHERE WOULD YOU BE WITHOUT IT? YOUR ABILITY TO EARN A LIVING IS WORTH PROTECTING WITH THE BEST INSURANCE PLAN YOU CAN OWN.

6 How much DI Insurance Do you need??? Disability Insurance Needs Analysis for: If you become too sick or hurt to work, could your family survive without your income? Does your family have the means to cover current debts and daily living expenses if you could no longer work and earn an income? The financial consequences of a disability can be devastating. Monthly Disability Benefits and Additional Income Monthly Expenses Group disability insurance benefit Mortgage/Rent (after taxes) Utilities and household expenses Individual disability income insurance benefit Groceries and household supplies Monthly Social Security disability Auto payments and expenses disability benefit (if any) Loans, credit cards and charge accts. Additional household income (rental, spouse, invesments, etc) Insurance premiums TOTAL: Child Care Savings and investments Other Monthly expenses TOTAL: Subtract your monthly expenses from your total monthly disability benefits and additional income. If there is an income shortage, protect your income with Individual Disability Insurance. Protect your income! If you become too sick or hurt to work, Individual Disability Insurance provides monthly benefits to help you: Meet Living Expenses Maintain Your Standard of Living Pay your mortgage and other monthly bills Keep your savings and retirement assets intact YOUR POTENTAL DI INSURANCE NEED: /Month