IncomeProtection:

A Key Consideration for Professional Women

Material discussed is meant for general illustration and/or

informational purposes only and it is not to be construed as tax, legal, or

investment advice. Although the information has been gathered from

sources believed reliable, please note that individual situations can vary, therefore the information should be relied upon when coordinated with

individual professional advice.

The Guardian Life Insurance Company of America

7 Hanover SquareNew York, NY

8533-6-06

Disability income products underwritten and issued by Berkshire Life Insurance Company of America, Pittsfield, MA, a wholly owned stock subsidiary of The Guardian Life Insurance Company of America,

New York, NY or the Guardian Life Insurance Company of America, New York, NY.

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The Independent Woman

Growing economic power

Own nearly half of all privately-owned firms*

Majority of college graduates

Majority of professional employees

* U.S. Department of Labor, Women’s Bureau, Statistics and Data Quick Stats 2004

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What is Your Future Income Worth?

Potential earnings to age 65 with 3% annual increases

Age $50,000 $75,000 $100,000 $150,000 $200,000 $250,000

30 $3,023,104 $4,534,656 $6,046,208 $9,069,312 $12,092,416 $15,115,520

35 $2,378,771 $3,568,156 $4,757,541 $7,136,312 $9,515,083 $11,893,853

40 $1,822,963 $2,734,444 $3,645,926 $5,468,889 $7,291,852 $9,114,816

45 $1,343,519 $2,015,278 $2,687,037 $4,030,556 $5,374,074 $6,717,593

50 $929,946 $1,394,918 $1,859,891 $2,789,837 $3,719,782 $4,649,728

55 $573,194 $859,790 $1,146,387 $1,719,581 $2,292,775 $2,865,969

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Healthy & Working

LivingExpenses

Earned Income

Surplus BuildingWealth

YourGoals

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Unhealthy & Not Working

Earned Income Stops

Living Expenses Continue

Deficit

DrainingWealth

Goals

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Know the Risks

Women are more likely than men to experience disability & corresponding loss of income.

Women experience more non-fatal, chronic illness than men, while men’s illnesses tend to be more life threatening.

Jans, L., & Stoddard, S. (1999). Chartbook on Women and Disability in the United States. An InfoUse Report. Washington, D.C.: U.S. National Institute on Disability and Rehabilitation Research.

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What Causes Disability?

Source: U.S. Department of Education, National Institute on Disability and Rehabilitation Research, 1996

86.6% Illness

13.4% Injuries

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What Causes Disability in Women?

Condition Percent

Arthritis 24.8

Back/Neck 21.0

Heart 15.1

Hypertension 12.1

Emotional 11.6

Bone/Joint Injury 10.9

Diabetes 10.4

Lung/Breathing 10.3

Vision 8.3Characteristics of the Civilian Noninstitutionalized Population by Age, Disability Status, and Type of Disability: 2000, U.S. Census Bureau, Census 2000, Summary File 3, P042.

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What Are Your Options?

Employer benefits?

Social Security?

Savings or investments?

Borrowing?

Spouse?

Family?

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Group Disability Insurance Plans

Typical Group Plan

Basic protection: 60% of salary, subject to a cap

May not cover bonuses or commissions

Benefit is taxable if your employer pays for it

Benefit is offset by government programs

Coverage can be modified or cancelled

You don’t own it

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The Missing Piece… Individual Disability Income Insurance

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Individual Disability Income Insurance

The Basics*

The cost is guaranteed

Benefits are not offset by other income sources

Benefits are tax-free

Policy benefits cannot be modified

Coverage cannot be cancelled

Can adjust coverage to meet changing needs

You own the policy

*Based on a typical non-cancellable and guaranteed renewable individual disability policy.

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Questions to Ask

When will the insurance company regard me as totally disabled?

How much do I get paid?

When do benefits start?

How long will benefits last?

What if I’m only partially disabled?

Can I get inflation protection?

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If You Own a Business

Insurance protection for…

Your income

Your employees

Your business

Your partner

Your retirement

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Next Steps

Thank You

IncomeProtection:

A Key Consideration for Professional Women