Protect Your Income

Designing An Income Protection Plan

You probably think of a disability as something that happens to other people. But simply believing “it won't happen to me” doesn't mean at some time in your life you won't be faced with a disabling illness or injury. Becoming too sick or hurt to work can happen to anyone at any time.

Why Is Your Income Your Greatest Asset?

The table below shows how much money you could earn if you work until you reach the age
of 65.

Annual Salary	$25,000	$50,000	$60,000	$100,000	$150,000
Age 25	$1,000,000	$2,000,000	$2,400,000	$4,000,000	$6,000,000
30	875,000	1,750,000	2,100,000	3,500,000	5,250,000
35	750,000	1,500,000	1,800,000	3,000,000	4,500,000
40	625,000	1,250,000	1,500,000	2,500,000	3,750,000
45	500,000	1,000,000	1,200,000	2,000,000	3,000,000
50	375,000	750,000	900,000	1,500,000	2,250,000
55	250,000	500,000	600,000	1,000,000	1,500,000

The Disability Problem

Becoming too sick or hurt to work is one of the most serious problems you and your family could ever face. If you should suffer a severe injury or illness, you could lose the income that provides you and your family with a home, food, transportation, clothes and other necessities.

Sometimes a disability is short term, and a quick return to work is possible. But if an injury or illness causes a long-term disability, often there are additional costs including long-term care and the extra help needed for your family to function in your absence. This could greatly increase the financial burden on your family.

Take a look at the chart below to see what could happen to your ability to save should you become disabled.

Where Would You Turn For Help?

If you were become too sick or hurt to work, the question is: From where would the money come?

Resources	Drawbacks and limitations
Social Security	69% of all initial Social Security applications are denied.*
Savings & investments accounts	If you save 10% of your income per year, one year of disability without a disability policy could use 10 years of savings and investments.
Employee group disability	Many plans cover only base pay and have a cap on benefits. Benefits are often taxable.
Workers’ Compensation	It pays only a limited amount over a relatively short period of time and only covers losses due to a work related illness or injury.
Loan from a bank	Who will lend funds to you if you can’t work? How will you pay it back if you remain disabled?
Friends and relatives	They may be willing to help, but their resources may be limited.
Spouse’s income	Can your spouse continue to work while caring for you and managing the household?

An income protection plan can help provide security for your family if something should happen to you.

You work to provide a continuous income, whether you are the sole breadwinner or one who shares this responsibility. If you lost your earning power as the result of a disabling illness or injury, a disability insurance plan would provide continuity of income when you need it most.

For you and your family, it could mean the difference between financial distress and financial stability.

* Source: United States House of Representatives Committee on Ways and Means, 1996.

Click here for a Disability Income Data Worksheet

Highlights And Features Your Policy Will Include:

Choice of benefit and waiting periods

Noncancellable and guaranteed renewable until age 65

Premiums guaranteed not to increase to age 65

20-day policy examination period

Good Health Benefit

Nondisabling Injury Benefit

A Plan That Goes To Work When You Can’t

An ideal income protection plan can offer you:

Flexibility

Portability

Noncancellable coverage

Affordable contracts

Adequate amount of benefit

A well-designed income protection plan will incorporate all available resources to provide adequate income during a disability. Anchored by an individually owned disability policy, it could be one of the best decisions you’ll ever make.