Who Needs Income Protection?

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
3.5 to 1
3.6 to 1
2.9 to 1
Source Society of Actuaries, CIDA Table
Age

• People are much more likely to become Disabled
  than to
• Die during their Working Years.

5
On average, it can take Years to recover from a
Disabling Illness/Injury once it has lasted more
than 90 Days.

• If Someone is Disabled for at least 90 Days,
  they will be out of Work for 5.9 Years on
  Average.

Source Society of Actuaries, CIDA Table
6
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
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
(No Transcript)
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 Todays 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
What could ever happen to me?

• Accidents
• AIDS
• Alcoholism
• Amnesia
• Anemia
• Aneurysm
• Angina Pectoris
• Apoplexy
• Appendicitis
• Arteriosclerosis
• Arthritis
• Asthma
• Atrial Fibrillation
• Back Disorders
• Blindness
• Brain Tumor
• Buergers Disease
• Bursitis
• Cancer

• Crohns Disease
• Colitis
• Colostomy
• Convulsion
• Coronary Artery Disease
• Cushings Disease
• Cystic Kidney
• Deafness
• Depression
• Detached Retina
• Diabetes
• Diverticulitis
• Edema
• Embolism
• Emphysema
• Encephalitis
• Endocarditis
• Epilepsy
• Fibrillation

• Hyperthyroidism
• Ileitis
• Iritis
• Keratoconus
• Kidney Stones
• Labyrinthitis
• Leukemia
• Lung Disorders
• Mastitis
• Menieres Disease
• Meningitis
• Mitral Valve Prolapse
• Multiple Sclerosis
• Murmurs
• Muscular Dystrophy
• Myocardial Infarction
• Nephrectomy
• Nephritis
• Osteoarthritis

• Pleurisy
• Pneumothorax
• Polycystic Kidney
• Proctitis
• Psychoneurosis
• Psychosis
• Pyelitis
• Raynauds Disease
• Regional Enteritis
• Regional Ileitis
• Retinitis
• Rheumatic Fever
• Rheumatoid Arthritis
• Sarcoidosis
• Sarcoma
• Sciatica
• Splenectomy
• Spondylitis
• Stroke

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Problems of Becoming Disabled
EXPENSES
DEBT
SAVINGS
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?
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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
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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.
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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
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Are You Ready to Sign This?

• 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
  ______________________________________________

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Being out of Work is bad enoughBeing out of
Work due to an Illness or Injury with no Income
is even worse!Long-Term Income Protection is
the only Long-Term Solution to a Long-Term
Disability.
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Thank You!

• Bill Fox, DIA
• Disability Income Regional Vice President
• Katie Cox
• Disability Income Internal Wholesaler
• Principal Financial Group
• [phone] - Katie x1 / Bill x2
• [phone] - Bills Cell Phone
• fox.bill_at_principal.com
• cox.katie_at_principal.com