7. The risk of disability is great... Consider the chance of disability. Out of 1,000 people, the number of people who may be disabled for at least 90 days before age 65 is: 1 out of 5 205 55 1 out of 4 262 50 3 out of 10 305 45 1 out of 3 340 40 3 out of 8 365 35 3 out of 8 385 30 2 out of 5 403 25 Probability of Disability Number Disabled At age
8. When a disability does strike, it can take a long time to recover... Average duration of a long term disability (disabilities lasting 90 days or more)… 4 years, 5 months 55 4 years, 2 months 50 3 years, 11 months 45 3 years, 6 months 40 3 years, 1 month 35 2 years, 8 months 30 2 years, 2 months 25 Duration Age at beginning of disability
9. The good news is people are living longer… Hypertension Heart Disease Cerebrovascular Diabetes All Four Diseases Percent Change in Death Rates
10. The bad news is the diseases that caused death are now leaving people disabled... The result…The potential for loss of earnings due to a disability can be staggering. -100 -75 -50 -25 0 25 50 75 100 Men Women Hypertension Heart Disease Cerebrovascular Diabetes All Four Diseases Percent Change in Disability Rates Percent Change in Death Rates
12. The fact is your health is your wealth... Your most valuable asset is lost when you can least afford it. Based on current income, these are your potential earnings to age 65. $____________
13. Your car is probably insured. Odds are your home is also insured. In all likelihood, your belongings are insured too. Doesn’t it make sense to have your ability to earn an income insured as well? Your cars are worth Your automobile insurance premium $______________ $____________________________ Your home is worth Your homeowner’s insurance premium $______________ $____________________________ Your other assets (Business, Your multi-peril insurance premium, etc, vacation home, boat, etc.) are worth $________________ $_____________________________ Think for a moment…
14. You spend a lot of money protecting these assets - the fruits of your labor. But, what about protecting what makes this all possible - your ability to generate income? Your annual earning power Amount you are now spending to protect your income $__________________ $_____________________________ Why keep your earning power at risk when so much depends on it?
17. When disability strikes, your expenses are very likely to increase… The problem is how to meet the cost of disability. DEBT Falling income plus ongoing expenses equals trouble NORMAL INCOME NORMAL EXPENSES SAVINGS Healthy - Working Disabled - not working
18. Have You Insured Your Golden Eggs. . . Car Home Property . . . But not the Goose?
22. Potential planning problems… Death Disability Retirement The difference between a problem and a tragedy is planning! Self-completing in the event of death or disability Insure You may not have time Save/invest Not to decide is to decide Do nothing Comments: Options:
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26. Putting the premium in perspective... When you put the premium in perspective, the premium is the solution, not the problem.
28. The cost of waiting to buy disability insurance... Age 35 Age 45 Initial outlay for $5,000 base monthly disability benefit, to age 65 benefit duration, 90-day elimination period, Extended Partial Disability Benefits Rider (for Residual and Recovery benefits).
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30. Which job would you prefer? $5,000 monthly benefit Based on male, 45, 5A, non-tobacco 90-day waiting period Benefits payable to age 65 (includes residual and recovery) *Tax-free under current federal tax law if premiums paid with after-tax dollars.
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