What is income protection Disability Insurance.

Income protection Disability Insurance provides coverage in the event policy holders become disabled and can’t perform their regular duties. In the event the policy holder becomes disabled the insurance company will start paying the policy holder a predetermined monthly benefit after the deferred period. This benefit is usually a percentage of the policy holder’s earnings. Most companies set a limit around 70% – 75%, but it can be lower for high income earners.

Features:

• Approval in as little as 48 hrs, Secure as much as $5,000 per month
• Limited underwriting
• No routine medical requirements*
• No financial verification (if annual income is less than $150,000)**
• A high-quality, individually owned portable policy
• Coverage that can’t be terminated (except for failure to pay premiums) with premiums that can’t be increased before age 65
• Income tax-free disability insurance benefits when premiums are paid with after-tax dollars
• A 20% Multi-Life premium discount (based on gender-neutral rates) available when three or more individuals with a common employer purchase coverage

Is your income protected if you become too sick or hurt to work?

Your ability to work and earn an income is your most valuable asset.  Yet a disability could prevent you from earning that income.  Just one year of a disability could eliminate years of savings. Now may be the time to discuss incorporating Individual Disability Income (DI) insurance into your overall financial plan.

If you become too sick or hurt to work, Individual DI insurance provides monthly benefits to help you meet living expenses and maintain your standard of living.  For example, monthly benefits can help pay your mortgage and other monthly bills and help your savings and retirement assets remain intact.

It’s easy to protect your most valuable asset

You may be eligible for a Simplified DI program that makes obtaining Individual DI Insurance easy.

• You receive an approval within 48 hours after your application and telephone medical interview are completed and received.
• It’s a quick and easy application process.
• There are no routine medical requirements.
• Your coverage that cannot be terminated (except for failure to pay premiums) or premiums increased before age 65.
• Own occupation coverage for your line of work

Plus, Individual DI insurance can integrate with other disability coverage you may already have.  For more information about Individual DI Insurance from Principal Life, please contact me today.

Understanding the need for income protection

“Why would I need individual disability income insurance?”

• There are many components to financial security, but your income makes everything else possible. Consider how much you could earn over the years and what your life would be like without that income.
• If you became too sick or hurt to work, you could lose your:
• Standard of living
• Home
• Dreams for the future
• Credit rating
• Retirement savings/other assets
• Peace of mind Ansurance

Popular Myths:

“I have enough disability coverage through my employer.”

• Group long-term disability insurance is a great start. Most plans cover 60 percent of your gross income and the benefits are usually taxable.  But, could you survive a 58 percent pay cut (after taxes) if you became disabled?
• What would happen if you lost your group disability benefits? It may make sense to purchase an individual DI insurance policy now rather than later when it can be more expensive or not an option for you due to health reasons.

“Social Security or Workers’ Compensation will take care of me.”

• Only 35 percent of the 2.8 million workers who applied for Social Security Disability Insurance were approved in 2009.3 Also, the benefits may not be enough to maintain your lifestyle. For example, the maximum benefit for someone earning $100,000 a year is only $16,800 a year.
• Workers’ Compensation benefits are limited to only occupational diseases or injuries arising out of or in the course of employment.

“I can rely on my savings or my friends and family will help.”

• Chances are you’re not saving for a disability — you’re saving for your dreams for the future, such as a new home, retirement, your children’s college education or travel.
• Even if you save 10 percent of your salary, a one-year disability could eliminate many years of savings.
• Would you want to put that burden on your family? How long could they support you?

“Would I even have a disability that would be covered?”

You’d be surprised at the many different types of illnesses and injuries that leave people disabled and unable to work. Most common claims are caused by:

• Back problems
• Cancer
• Cardiac illnesses
• Injuries
• Mental and nervous disorders
• Nervous system disorders
• Orthopedic issues (excluding back)

A Faster Way to Protect Your Most Valuable Asset

Your ability to work and earn an income is your most valuable asset. Yet a disability could prevent you from earning that income — and could deplete your savings. If you become too sick or hurt to work, Individual Disability Income (DI) insurance provides monthly benefits to help meet everyday living expenses and maintain your standard of living.
There’s a simple and faster way to protect your most valuable asset. You receive an underwriting decision within 48 hours after your application and telephone medical interview are completed and received.