Using Disability Insurance to Protect Income
Your income helps pay for everyday living expenses, but it also gives you the freedom to do the things you love.
Make sure that doesn't change - even if your health or ability to work does.
What is income protection?
Income protection is insurance that pays you benefits, like a "paycheck," if you can't work because of illness or injury.
Do you really need it?
You may be surprised at the chance of becoming too sick or hurt to work. Illness and injuries can happen to anyone, anywhere, anytime.
Disabilities happen more often than you may think.1
1 in 4 of today's 20-year-olds will become disabled before they retire.
You can use these payments to pay for the big and little things in life.
Common conditions.2
Contact your financial representative to learn more.
How much does it cost?
Disability insurance is flexible and can be designed to work
with your budget and needs.
For example, to protect your
income, it typically costs just 1-3% of what you earn.
To put that in perspective, in a month. that's less than:
• A daily cup of coffee
• A date night
​
• Buying lunch everday
• A Smartphone bill
​
These comparisons are for illustrative purposes only.
What is my income worth?
Potential earnings to age 65 (with 5% annual salary increases)
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Example: a 40-year-old who makes $75,000/year will earn $3,580,000 over his/her working career.
Disability Insurance Worksheet
1. Current Monthly Expenses (Rent/Mortgage, Utilities, Groceries, Medical, Credit Card Payments, Etc........... )
$_____
2. Estimated Monthly Income During A Disability (Spouse's Income, Withdrawals From Saving & Retirement Accounts, Social Security, Etc.)
$______
3. Current Monthly Disability Insurance Benefits (Group Ltd Benefits, Individual Disability Benefits)
$______
4. Monthly Disability Insurance Need (Subtract Line 2 And Line 3 From Line 1)
$______
Protect your business no matter what life brings.Talk to your financial professional today.
Using Disability Insurance to Protect Retirement Income
Consider what would happen to your retirement savings if an illness or injury prevented you from working. Keep those plans on track, regardless of what life brings.
If you are unable to work due to illness or injury, thecontributions to your retirement plan would cease, causing a tremendous shortfall in the funds required to support you in retirement.
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Retirement Protection Plan
A Retirement Protection Plan replaces the lost contribution, allowing you to close the retirement gap and keep your plans on track if an injury or illness prevents you from working.
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How does a Retirement Protection Plan work?
If you become unable to work as the result of an injury or illness, benefits are sent to an irrevocable trust established for your benefit. The benefit amount participates in one of six asset allocation models until you reach the end of your benefit period, at which time the trust assets are made available to you. It's that simple.
Assumptions: $2,000/month contributions beginning at age 30, 5% rate of return, and age 65 retirement. Potential loss due to disability at age 40 without continued contributions to retirement savings.This hypothetical example is shown for illustrative purposes only and is not guaranteed.
Take comfort in knowing you'll be able to look forward to retirement, no
matter what life brings.
Contact your financial representative to learn more.
DI Retirement Security is issued as a non-cancellable, guaranteed-renewable, individual disability income insurance policy. It is not a pension or retirement program and a substitute of such program. DI Retirement Security is not available for anyone who is new-issued based on our Current Issue and Participation Guidelines. It may not be available or the benefit may be reduced for certain occupations if there is existing disability coverage with other carriers. Additional underwriting guidelines may apply. Although external indexes may affect policy values, a market downturn cannot reduce your credited interest or principal. The policy does not directly participate in any stock, bond, or investments. You are not buying any bonds, shares of stocks, or shares of an index. The market index value does not include the dividends paid on the stocks underlying a stock index. These stock dividends are also not reflected in the interest credited to your cash value.
For Financial Professional Use Only. 4377103-0425
Why Business Owners Should Consider Disability Insurance
Your business is your livelihood. You work hard to make sure revenue comes in and that everyone is happy.Disability insurance can help in protecting every aspect from the unexpected.
Why consider Disability insurance?
​
You never know what life will bring that could prevent you from working and be financially devastating to you and your business.
A properly designed plan can protect your:​
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• Personal income so you and your loved ones can continue to live your best lives.​
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• Business so it stays up-and-running whileyou recover or transition the business to someone else.​
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• Employees' incomes to show you care when times are good and when life gets tough.
How much will it cost?
Using Disability insurance to protect your business can be budget-friendly. The cost is typically just 1-3% of what you earn.
​
For perspective, in one month, that's less than:
• a daily cup of coffee
• a date night
• a smart-phone bill
Do you really need it?
Disabilities happen more often than you may think.1
Illness and injuries can happen to anyone, anywhere, anytime.
​
Common conditions.2
1 in 4 of today's 20-year-olds will become disabled before they retire.
What's at stake if I do become too sick or hurt to work?
Your income and potential earnings are at stake. For example: a 40-year-old who makes $75,000 per year has the potential to earn$3,580,000 over his/her working career.