ILLUSTRATIONS

We insure our cars. We have coverage on our homes. Our lives are probably insured as well. What about the income that makes all these premium payments possible? Is your income adequately covered? Let’s say you are one of the lucky ones who have a group LTD policy covering your income. Go ahead; check the “fine print” in your benefits booklet. Your policy will pay you 60% of pay up to $5,000 monthly after a 90 day waiting period. Great! This is true “peace of mind”…or is it?

  • If your earnings are over $100k, you are not getting 60% - reverse discrimination!
  • A 90 day wait is fine, unless your savings only stretch 78 days - early bankruptcy!
  • 60% of pay sounds sweet - until we call it by its real name - a 40% pay cut!

Probability of Disability for Six Months or More Before 65 -versus- Death Before 65

Current Age Chance of a Long Term Disability Chance of Death
30 19% 8%
35 19% 8%
40 18% 7%
45 17% 6%

With these odds, with these facts, isn’t it time to take a look at disability insurance? To prepare proposals some basic data is required. In addition to the regular personal information about the prospect (Name, DOB, Sex, State, Smoker status, Health), a few extra considerations are involved in disability income:

  • If it is to be an income replacement policy, exact earnings and overtime and bonuses are a must, along with any details about existing LTD or retirement plan disability provisions.
  • If it is key employee coverage, you'll need to know who (employer/employee/both) will be paying for what part of the premium and who will get the benefit payments if disabled.
  • For buy-sell disability, accurate data on all owners and business values are essential.
  • In all policy types we must know not only job titles but exact duties. Also, information about any hazardous sports, prior injuries (especially back problems), or mental and nervous conditions are needed to give you the confidence you deserve that the proposal is as reliable as possible.

To be able to present a well thought-out proposal with expert assistance, which method would you pick?

  • Use a website premium calculator?
  • Run the proposal using carrier software?
  • Ask a friend for help?
  • Contact Pinney Insurance Center for an illustration!

We invite your fax or telephone or email requests. Let’s discuss your client together and come up with a winning strategy to answer their disability needs.

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Income replacement disability income insurance will pay you when no one else will give you 2¢ for your time. Protect your lifestyle. Insure the income that supports it. Find out more about DI today. Call Pinney Insurance Center at 800-823-4852.

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