The Northwestern Mutual Life Insurance Company (Northwestern Mutual), Milwaukee, WI Disability Income Insurance Presentation for the Medical Society of Northern Virginia Medical Occupation Definition Robert P. Quinn, CLU, CLTC Disability Insurance Specialist Sergio Arana Financial Representative April 13, 2011. *Patent Pending. Northwestern Mutual owns a pending patent application that is based in part on the Medical Occupation Definition described herein.
How much disability income insurance do you need? Not counting inflation or income increases, your current income through age 65 would be: Age Today $150,000 $200,000 $250,000 $350,000 35 $4.5 million $6.0 million $7.5 million $10.5 million 45 $3.0 million $4.0 million $5.0 million $7.0 million 55 $1.5 million $2.0 million $2.5 million $3.5 million Your gross earning power is worth more than you think.
Tips for Designing Comprehensive Disability Income Protection: 1. Understand how individual disability income insurance works. a) Understand your definition of total disability options; but b) Consider the entire policy 2. Select appropriate disability insurance policies for all the risks you face. 3. Consider the company behind the contract. Design a program that will best meet your total needs.
Tips for Selecting Individual Disability Income Insurance: 1. Understand how disability income insurance works 2. Consider the entire policy, not just one portion 3. Consider the company behind the contract Select a policy that will best meet your needs over the long term.
Understand how disability income insurance works Common Recommendation: You need own occupation or specialty own occupation disability income insurance. Common Misconception: With this type of insurance, you will be considered totally disabled and receive your full disability benefit if you can no longer do your main or principal duty. Why is this a misconception?
Understand how disability income insurance works the Realities A. To be totally disabled, you must be unable to do your principal duties and duties is always plural B. The differences between various own occupation policies only come up when/if you first meet the above criteria to be totally disabled C. All current own occupation policies are essentially the same when it comes to partial disability (still capable of doing one or more principal duty): You must work in order to receive a proportionate (partial) benefit But now there s another option.
Northwestern Mutual s Medical Occupation Definition Unique in the industry, designed specifically with input from physicians and dentists. Provides flexibility that may not be available with typical own occupation policies. Before disability, her principal duties were Procedures (70% of time & income) Non-procedural patient exams (30% of time & income) As a result of disability, she is Unable to perform procedures Able to perform nonprocedural patients exams, etc. Under the Medical Occupation Definition, she has flexibility to: A. Continue working and be considered partially disabled. OR B. Give up gainful employment and be considered totally disabled. Would this coverage more closely meet your needs & expectations? Not available in all states.
Tip: Consider the entire policy Disability policies are more than just the definition of total disability How is partial disability defined? Is there a transition or return to work benefit? Etc. Other policy features may be very important for your needs.
Northwestern Mutual s Proportionate Benefit for Partial Disability Our proportionate benefit may give a distinct advantage: Do not need to demonstrate income loss for first 6 months Since income loss often lags behind duties or time loss, could receive a benefit from us sooner Could this be another reason to consider Northwestern Mutual?
Tip: Select disability insurance policies for all the risks you face Overhead expense coverage Buy-out coverage Key person insurance Small business owners need more than individual DI coverage...
What s Most Important to Your Business? You What happens to your business if something happens to you?
If you were to become sick or hurt and unable to work. Would you be able to: Continue to pay employee salaries? Satisfy ongoing expenses relating to your business or practice? Hire someone to run your business or practice? What if a partner or key employee were disabled? In any of these cases. Would your business or practice be open or closed? How would your business be impacted?
The Advantages of Disability Overhead Expense (DOE) Insurance 1. Provides benefits to pay ongoing overhead expenses 2. Pays benefits for total or partial disability 3. Provides benefits to pay for a replacement 4. Premiums are tax-deductible 5. Benefits received can be offset against expenses to reduce tax liability Gives you time to make decisions on the future of your business
The Advantages of Disability Buyout Insurance 1. Funds a disability buy-out agreement with lump-sum or installment payments 2. Reimburses the buyers of the business with tax-free benefits 3. Instrumental in determining when an owner is totally disabled Can help trigger and fund a buy-sell agreement
The Advantages of Disability Keyperson Insurance 1. Provides a benefit to the business in the event the key person is disabled 2. Benefits can be used to a) Strengthen cash flow b) Hire or train a replacement c) Provide wage continuation benefits for the disabled key employee 3. The insured can be changed if your key employee leaves Benefits can be used in many ways to support the business
Tip: Consider the company behind the contract Financial strength and ratings History & experience in the disability insurance marketplace Mutuality Strength, experience, and mutuality matter.
The Power of Partnership Northwestern Mutual is dedicated to your success.
Disability Learning Insurance to Invest With Confidence Protecting Your Most Important Asset Thank You
Learning Disclosure to Invest with Confidence Insurance Agent of Northwestern Mutual (life insurance, annuities and disability income insurance).
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