Solo disability income

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Disability insurance – Could you afford not to have it?

Transcript of Solo disability income

Page 1: Solo disability income

Disability insurance – Could you afford not to have it?

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Agenda

• Why do you need disability insurance?

• How does it work?

• What are the options?

• SOLO Disability Income features

• Examples

• How can you buy it?

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Whether it's…

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mortgage or rent

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groceries

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car payments

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daycare

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tuition fees

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Or any other expenses…

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We all have bills to pay… every month…

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And if suddenly,

you were unable to work and earn an income

What would you do?

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What do you think your most valuable asset is?

Is it your property… your vehicle… your investments …something else?

Age $24,000 $36,000 $60,000 $120,000

25 $1.809,630 $2.714,445 $7.247,986 $14.495,973

30 $1.451,090 $2.176,635 $5.419,218 $10.838,437

35 $1.141,810 $1.712,715 $3.986,331 $7.972,662

40 $875,022 $1.312,534 $2.863,626 $5.727,252

45 $644,889 $967,333 $1.983,957 $3.967,914

50 $446,374 $669,561 $1.294,714 $2.589,428

55 $275,133 $412,700 $754,673 $1.509,347

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Everybody is millionaire!

Your income is a most valuable asset that you will acquire during your lifetime.

That is why :

Disability Insurance

= Basis of your financial security

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From the other perspective…

When you buy a car:You call immediately car insurer to protect it!

À L'USAGE EXCLUSIF DES CONSEILLERS 14/57

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From the other perspective…

When you buy a house:You call immediately home insurer to protect it!

À L'USAGE EXCLUSIF DES CONSEILLERS 15/57

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From the other perspective…

When you buy stainless steel appliances:You will probably insure them if something goes wrong.

À L'USAGE EXCLUSIF DES CONSEILLERS 16/57

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From the other perspective…

But when you earn your salary and have no disability protection to protect it, do you buy disability insurance right away?

Disability Insurance

= Basis of your financial security

If you have no income, will you have enough money to pay your house, your car, your appliances, your other insurances if disabled?

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Reality in case of illness or accident

Revenues

Expenses

Disability

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How long could you live off your savings?

If you save for:

5 % of your income

10 % of your

income

15 % of your

income

2 years 1 ½ months 3 months 4 ½ months

5 years 3 ½ months 7 ½ months 11 months

10 years 7 ½ months1 year et 3

months1 year et 10

months

A long-term disability (90 days & +) can be bad for your financial security!

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Probability of becoming disabled before age 65 and average duration of

disability for 90 days or more

Age Probability Average duration

25 40% 2 years and 2 months

30 39% 2 years and 8 months

35 37% 3 years and 1 month

40 34% 3 years and 6 months

45 31% 3 years and 11 months

50 26% 4 years and 2 months

55 21% 4 years and 5 months

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How does disability insurance work?

It pays you a monthly benefit:

…to replace your income

…when you are not able to work

…due to an illness or accident

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Main components

1. Monthly benefit

2. Waiting period

3. Benefit period

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Options

• Regular occupation period

• 2-year

• 5-year

• Up to 65 years

• Residual or partial disability

• Cost of living

• Future insurability option

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SOLO Disability Income unique features

1 • 1st day in case of hospitalization or day surgery(For waiting periods of 90 days and less)

No

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SOLO Disability Income unique features

2 • 1st $1,200 guaranteed• No integration and no

coordination apply for the first 36 monthsNo

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SOLO Disability Income unique features

3 5 x your monthly benefit if you are diagnosed with 1 of the 25critical illnesses• Disabled or not• Paid on top of your benefitNo

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Covered critical illnesses

• Cancer• Heart attack• Stroke• Coronary Artery Bypass Surgery• Multiple sclerosis• Parkinson• Paralysis• Kidney failure• …

Total: 25 illnesses!

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SOLO Disability Income unique features

4 • An extra 5% paid on top of the benefit starting on the 13th month of your disability income payment (in a DFS savings account)

If $2,000 benefit, it means an extra of $100!

No

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SOLO Disability Income unique features

5 • 5 x the monthly benefit in case of death(Paid if the death occurs while receiving disability benefits)

No

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SOLO Disability Income unique features

• Regular occupation period

• Residual or partial disability

• Cost of living

• Future insurability option

• Return of premium: up to 50%

Furthermore,

you could add

those

options:

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Which job would you choose?

Job A

• $33,000 per year• $0 if you become disabled

Job B• $32,000 per year• 90% of your net income up to age 65 if you become

disabled

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How much does it cost?

Classification 120 daysUp to age 65

2A $1,850/month

Age 25 30 35 40 45 50 55

Female $67 $80 $95 $125 $171 $213 $233

Male $53 $63 $78 $106 $151 $196 $225

• PLUS Future insurability option $1,000

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Next steps

Monthly benefitAge

18 to 45 years 46 to 55 years

$0 to $2,000 1 1

$2,001 to $3,999 1 2

1. Medical questionnaire

2. Medical questionnaire, nurse visit, urine test

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Thank you!