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Who Needs Income Protection?

Who Needs Income Protection?. If you need your Income… You need to Protect it!. “ Disability Income Protection is not about Statistics… it is about Consequences”. Approximately One in Seven Americans is likely to suffer a Disabling Illness/Injury in any given Year!.

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Who Needs Income Protection?

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  1. Who Needs Income Protection? If you need your Income… You need to Protect it!

  2. “Disability Income Protection is not about Statistics… it is about Consequences”

  3. Approximately One in Seven Americans is likely to suffer a Disabling Illness/Injury in any given Year! Source: 2006 Commissioner's Disability Table A

  4. Disability is a Reality! 3.9 to 1 4.2 to 1 People are much more likely to become Disabled than to Die during their Working Years. 3.5 to 1 3.6 to 1 2.9 to 1 Source: Society of Actuaries, CIDA Table Age

  5. If Someone is Disabled for at least 90 Days, they will be out of Work for 5.9 Years… on Average. On average, it can take Years to recover from a Disabling Illness/Injury once it has lasted more than 90 Days. Source: Society of Actuaries, CIDA Table

  6. RIP In any given Year... 1 in 68* Will be Injured in an Auto Accident. 1 in 258** Will have a House Fire. Over 12 Million People were Disabled, just from Accidents alone, in 2002.## 1 in 113# Will Die. Sources: *National Safety Council, 2003 edition, **National Fire Protection Association, 2002 combined with U.S. Census Bureau, 2001 estimate of housing units, #World Almanac & Book of Facts, 2003 edition, ## Accident Facts, 2003 Edition National Safety Council

  7. 1 in 68 Drivers will be Injured in an Auto Accident this Year.* Our Cars $20,000 1 in 258 Homes will catch on Fire this Year.** Our Homes $200,000 We Insure . . . But, What About … Over 12 Million People were Disabled, just from Accidents alone, in 2002.# What about Our Earning Potential??? $2,000,000 {Earning $100,000 a Year for 20 Years} Sources: *National Safety Council, 2003 Edition, **National Fire Protection Association, 2002 combined with U.S. Census Bureau 2002estimate of housing units, #Accident Facts, 2003 Edition National Safety Council

  8. Successful Financial Strategy PERSONAL BUSINES ASSETS RETIREMENT PLANS PERSONAL INVESTMENTS SAVINGS –BUSINESS OWNERSHIP AUTO/ HOME INS. LIFE INS. HEALTH INS. PROP. INS. Income / Disability Income Insurance EVERYDAY LIVING EXPENSES Foundation INCOME - DISABILITY INCOME

  9. Sources of Income… should you lose your Income. Savings If you save 10% Annually, 1 Year of Disability can wipe out 10 Years of Savings! Social Security Denies roughly 87% of initial Claims and 60% of all Disability Claims received. 18 Month Backlog on current Claims…* Sell Investments Will you get the true Value if you have to Sell? Without an Income, who will lend you Money… especially in Today’s Economy? Loan Family, Friends & Charity Do you want to have to depend on them… do they want that Burden, long-term? *Source: Social Security Bulletin Annual Statistical Supplement, 2003.

  10. Disability is 265% more likely than Death to cause... FORECLOSURE One out of 18 Mortgages in America are not being paid due to a Disability of the Mortgage Holder! Source: Department of Housing & Urban Development - FHA Loans (Originating 1968-2006) In a 90-Day plus Delinquency Status as of 8/27/07.

  11. An interesting fact . . . FORECLOSURE 48% of all Home Foreclosures are the result of a Disability! Source: Department of Housing & Urban Development - FHA Loans (Originating 1968-2006) In a 90-Day plus Delinquency Status as of 8/27/07.

  12. Accidents AIDS Alcoholism Amnesia Anemia Aneurysm Angina Pectoris Apoplexy Appendicitis Arteriosclerosis Arthritis Asthma Atrial Fibrillation Back Disorders Blindness Brain Tumor Buerger’s Disease Bursitis Cancer Cardiospasm Carpal Tunnel Syndrome Cataracts Cerebral Concussion Cerebral Palsy Cholecystitis Chorea Chronic Fatigue Syndrome What could ever happen to me? • Crohn’s Disease • Colitis • Colostomy • Convulsion • Coronary Artery Disease • Cushing’s Disease • Cystic Kidney • Deafness • Depression • Detached Retina • Diabetes • Diverticulitis • Edema • Embolism • Emphysema • Encephalitis • Endocarditis • Epilepsy • Fibrillation • Friedreich’s Ataxia • Gastrectomy • Glaucoma • Gout • Hemophilia • Hepatitis • Hodgkin's Disease • Hypertension • Hyperthyroidism • Ileitis • Iritis • Keratoconus • Kidney Stones • Labyrinthitis • Leukemia • Lung Disorders • Mastitis • Meniere’s Disease • Meningitis • Mitral Valve Prolapse • Multiple Sclerosis • Murmurs • Muscular Dystrophy • Myocardial Infarction • Nephrectomy • Nephritis • Osteoarthritis • Palsy • Pancreatitis • Paralysis • Parkinson’s Disease • Periarteritis • Percarditis • Phlebitis • Pituitary Gland Disease • Pleurisy • Pneumothorax • Polycystic Kidney • Proctitis • Psychoneurosis • Psychosis • Pyelitis • Raynaud’s Disease • Regional Enteritis • Regional Ileitis • Retinitis • Rheumatic Fever • Rheumatoid Arthritis • Sarcoidosis • Sarcoma • Sciatica • Splenectomy • Spondylitis • Stroke • Thrombosis • Tuberculosis • Tumor • Ulcer • Ulcerative Colitis • Ulcerative Proctitis • Varicose Veins • Vertigo

  13. Problems of Becoming Disabled EXPENSES SAVINGS DEBT INCOME DISABILITY STRIKES!

  14. Your most valuable Asset is your ability to earn an Income Potential Earnings to Age 65 Annual Earned Income (not including Annual Salary increases) Current Age $24,000 $36,000 $48,000 $60,000 $90,000 $120,000 26 $936,000 $1,404,000 $1,872,000 $2,340,000 $3,510,000 $4,680,000 28 $888,000 $1,332,000 $1,776,000 $2,220,000 $3,330,000 $4,440,000 30 $840,000 $1,260,000 $1,680,000 $2,100,000 $3,150,000 $4,200,000 32 $792,000 $1,188,000 $1,584,000 $1,980,000 $2,970,000 $3,960,000 34 $744,000 $1,116,000 $1,488,000 $1,860,000 $2,790,000 $3,720,000 36 $696,000 $1,044,000 $1,392,000 $1,740,000 $2,610,000 $3,480,000 38 $648,000 $972,000 $1,296,000 $1,620,000 $2,430,000 $3,240,000 40 $600,000 $900,000 $1,200,000 $1,500,000 $2,250,000 $3,000,000 42 $552,000 $828,000 $1,104,000 $1,380,000 $2,070,000 $2,760,000 44 $504,000 $756,000 $1,008,000 $1,260,000 $1,890,000 $2,520,000 46 $456,000 $684,000 $912,000 $1,140,000 $1,710,000 $2,280,000 48 $408,000 $612,000 $816,000 $1,020,000 $1,530,000 $2,040,000 50 $360,000 $540,000 $720,000 $900,000 $1,350,000 $1,800,000 52 $312,000 $468,000 $624,000 $780,000 $1,170,000 $1,560,000 54 $264,000 $396,000 $528,000 $660,000 $990,000 $1,320,000

  15. Number of Monthly Paychecks remaining until Age 65 Number Left How Many Can You Do Without?

  16. Can You Afford to Rely on Social Security for Disability Coverage? 60% REJECTED! The Social Security Administration has rejected 60% of all disability applications since 1980. In some years, 70% or more disability claims were denied. This means that 6 to 7 out of every 10 disabled workers never collected benefits for their claims. Source: Social Security Bulletin Annual Statistical Supplement, 1998

  17. Which Job Would You Rather Have? Job A Job B $100,000 a Year Income without any Income Protection $98,000 a Year Income With Income Protection Healthy $0 a Year Income without any Income Protection $60,000 a Year Income (Tax-Free) with Income Protection Sick or Hurt Assumes a $2,000 Annual Premium *Sick or hurt as defined by the term “Disability” in Disability Income Insurance Policies issued. This Policy has Limitations & Exclusions.

  18. Are you Self-Insuring your Health & Income Insurance Plan? A Balanced Health & Income Insurance Plan: • Health Insurance • covers: • Hospital Bills • Doctor Bills • Prescriptions • Other Medical Treatment • Income Protection • provides Funds for: • Food • Clothing • Housing • Transportation • Insurance Premiums • Retirement Planning • College Education for Kids You & Your Family Income Protection Plan Health Insurance

  19. Waiver of Liability Disability Income Protection My Signature below verifies that I have discussed with my Financial Advisor, whose Signature appears below, the affect that an extended period of Disability could have on my Income, Retirement Benefits and other Assets; and that at this time I have chosen: [ ] Not to Apply for Disability Income Protection [ ] To Apply for Coverage other than what was recommended by my Financial Advisor I understand that future changes in my Insurability (Medical and/or Financial) may cause me to lose my ability to qualify for Coverage. I further understand that any other Disability Income Insurance that I may currently have in effect (such as Employer and/or Government Sponsored Plans) may not provide adequate Income Benefits for my Personal Financial Situation. Therefore, I hereby release the undersigned Financial Representative from any present and/or future financial responsibility to me, my Family or my Business, if I become Disabled. Date: ____________________ Client Name: ______________________________________________ Date: ____________________ Financial Representative:_____________________________________ Are You Ready to Sign This?

  20. Being out of Work is bad enough…Being out of Work due to an Illness or Injury with no Income is even worse!Long-TermIncome Protection is the onlyLong-Term Solutionto a Long-Term Disability.

  21. Bill Fox,DIA Disability Income Regional Vice President Katie Cox Disability Income Internal Wholesaler Principal Financial Group (877) 475-3435 - Katie x1 / Bill x2 (704) 649-5152 - Bill’s Cell Phone fox.bill@principal.com cox.katie@principal.com Thank You!

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