Help protect your income and financial future Individual Disability Income Insurance.

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Transcript of Help protect your income and financial future Individual Disability Income Insurance.

  • Help protect your income and financial futureIndividual Disability Income Insurance

  • How solid is your financial foundation?

  • What is your most valuable asset?Your home may be your biggest asset, but your ability to work and earn an income is your most valuable asset.1 Motor Trend, January 20052 www.investmenttools.com, May 20063 Projected cumulative income, 35-year-old earning $6,250/month assuming 4% annual increase to age 65

  • Potential Earnings to Age 65 (with 5% annual salary increases)

    What is your earnings potential?

  • The NeedApproximately 30% of all people aged 35 to 65 will suffer a disability for at least 90 days, and about one in seven can expect to become disabled for five years or more.*

    *Health Insurance of America, 2000

  • Times are different now.What used to cause death, now causes disabilityFor example, deaths due to hypertension are down 73%, while disabilities due to hypertension have increased by 70%.

  • Disabilities play no favoritesThe causes of disability may surprise you. Heres a typical breakdown (by percentage of claims) of some typical reasons an individual may become disabled.

  • Source: Principal Life Disability Insurance claims incurred as of March 2007. The above is for illustration purposes only and is not intended as an inclusive representation of all claims.

    Real claims, it can happen .

  • Which job would you rather have?* $100,000 less $1,500 in hypothetical annual disability income insurance premiums. Hypothetical premium amount paid and hypothetical annual benefit amount received depends on various factors. Your Financial Representative can illustrate the exact amount eligible for based on current underwriting guidelines.

  • Could you afford your home without your income?48% of all home foreclosures are due to a disability.1

    1 out of every 18 mortgages are not being paid because of a disability to the mortgage holder.2

    Protect your mortgage with a disability income insurance policy from Principal Life Insurance Company.1 - National Underwriter, May 20022 - National Underwriter, May 2002 / HUD 1998

  • Can you live on 42% of your income?Is employer-provided group long-term disability (LTD) insurance coverage enough?Chart based on $6,250 gross monthly income ($75,000 annual), with 60% Group long-term disability program, assuming a 30% tax bracket for Federal, State and FICA

  • Are you covered?List your expenses and possible sources of income you would have if you were unable to work due to an injury or illness.Total Expenses: $_________Total Income Shortage: $_________Disability Income Insurance has certain limitations and exclusions. For costs and complete details of coverage, contact your Principal Life representative.Solution: Individual Disability Income insurance

    ExpensesHousingUtilitiesGroceriesChild CareCollege TuitionRetirementAuto PaymentsCredit CardsLoan paymentsOther Insurance PremiumsMiscellaneousDisability-Related Expenses$ __________________$ __________________$ __________________$ __________________$ __________________$ __________________$ __________________$ __________________$ __________________$ __________________

    $ __________________$ __________________

    IncomeSocial SecurityCurrent DI CoverageOther Sources$ __________________$ __________________$ __________________$ __________________

  • Questions?Principal Life Insurance Company, Des Moines, Iowa 50392-0002, www.principal.com 2007 Principal Financial Services, Inc. While this communication may be used to promote or market a transaction or an idea that is discussed in the publication, it is intended to provide general information about the subject matter covered and is provided with the understanding that The Principal is not rendering legal, accounting, or tax advice. It is not a marketed opinion and may not be used to avoid penalties under the Internal Revenue Code. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements. Insurance is issued by Principal Life Insurance Company, a member of the Principal Financial Group, Des Moines, Iowa 50392.

    Disability insurance has certain limitations and exclusions. For costs and complete details of coverage, contact your Principal Life representative.DI 2245 | HH 641/HH 643/HH 644/HH 750 | #2215032009

    *When you fail to protect your income, your dreams for a comfortable retirement, college education for the kids, or passing on assets may not become a reality.

    This diagram shows how to make plans for your financial future. Protecting assets is the foundation of a solid financial plan. Insurance helps you prepare for the unexpected: property damage, medical expenses, loss of life, and loss of income due to disability. Removing your income from the foundation can cause your financial plan to come tumbling down.

    *You insure your home, your cars, but what about your income? The ability to work and earn an income may be your most valuable asset.

    *What would you if you became too sick or hurt to work? If youre like most people, you would probably find it hard to maintain your current lifestyles. *If asked, most of us would consider our home or our savings our most valuable asset. Actually, our most valuable asset could be considered our ability to earn the income that provides the resources and security so important to our families.

    Did you know that 30% of those aged 30 to 65 will, during their work career, experience a disability that will last at least three months. One in seven of us will be disabled for five years or more.

    This statistic may strike you as high but there are reasons for the high incidence of disability.*The causes of disability may surprise you! Heres a breakdown (by percentage of claims) of some typical reasons an individual may become disabled.

    With Individual Disability Income insurance from Principal Life, you can feel secure in knowing that by helping to protect one of your most valuable assets, your ability to work and earn an income you can reduce the financial strain even a short-term disability can cause if you become too sick or hurt to work.

    **WHICH JOB WOULD YOU RATHER HAVE?For only a small percentage of your salary, Principal Life can help replace a portion of your income and help protect what it provides if you become too sick or hurt to work.

    *How would you meet one of the biggest financial obligations you face each month if you became too sick or hurt to work?

    Did you know that 48% of all home foreclosures are due to serious medical problems? (National Underwriter, May 2002) More than 40% of U.S. workers risk losing their homes and ability to support their families because they lack income replacement protection if a disability strikes.(Hartford Financial Services Group, Inc., study, Oct. 2003) Most peoples savings will cover less than six months of expenses. (Business Almanac, 1997) Nearly half of the one million Americans who filed for bankruptcy protection in 1999 did so after being sidelined by an unexpected illness or injury.(New York Post, April 3, 2000, Theres No Insuring You Wont Go Bankrupt)

    **A Solution: Individual Disability Income insurance from Principal Life Insurance Company can help you pay for your expenses during a disability!*