Presented By David C. Cochrane Principal Financial Group Based on the experience of Principal Life financial representativ...
From Here to Security SM <ul><li>While this communication may be used to promote or market a transaction or an idea that i...
From Here to Security SM <ul><li>Why do  you  work? </li></ul><ul><li>To pay the bills </li></ul><ul><li>To secure your fu...
From Here to Security SM <ul><li>What if you become too sick or hurt to work? </li></ul><ul><li>What would happen to your ...
From Here to Security SM <ul><li>The time to address financial security is now! </li></ul><ul><li>Back to the fundamentals...
From Here to Security SM <ul><li>Three - step process </li></ul><ul><li>Step 1: Understand the need for income protection ...
From Here to Security SM <ul><li>Step 1:   Understanding the need </li></ul><ul><li>51.2 million Americans have some level...
From Here to Security SM <ul><li>Disabilities play no favorites </li></ul><ul><li>The causes of disability may surprise yo...
From Here to Security SM <ul><li>Step 2:   Protect your plan and your income </li></ul>A Step-by-Step Guide to Disability ...
From Here to Security SM <ul><li>What is your most valuable asset? </li></ul><ul><li>Your home may be your  biggest  asset...
From Here to Security SM What is your earnings potential? Potential Earnings to Age 65 (with 5% annual salary increases) A...
From Here to Security SM <ul><li>Available disability income sources </li></ul><ul><li>Savings </li></ul><ul><li>Borrowing...
From Here to Security SM <ul><li>Savings </li></ul><ul><li>Most people don’t have enough savings. </li></ul><ul><li>One ye...
From Here to Security SM <ul><li>Group long-term disability (LTD) insurance coverage </li></ul><ul><li>Excellent employer-...
From Here to Security SM <ul><li>Social Security </li></ul><ul><li>Initially deny 65% of all claims </li></ul><ul><li>Must...
From Here to Security SM <ul><li>Workers’ Compensation </li></ul><ul><li>Covers only work-related illness or injury on  th...
From Here to Security SM <ul><li>You have a lot to lose </li></ul>A Step-by-Step Guide to Disability Income Insurance <ul>...
From Here to Security SM <ul><li>Protect your ability to work and earn an income  with Individual Disability Income (DI) i...
From Here to Security SM <ul><li>Individual Disability Income insurance </li></ul><ul><li>Premiums and benefits are guaran...
From Here to Security SM <ul><li>Step 3: Review your plan regularly </li></ul><ul><li>Pick a day you’ll remember </li></ul...
From Here to Security SM <ul><li>What your review may discover </li></ul><ul><li>You’re well protected </li></ul><ul><li>Y...
From Here to Security SM <ul><li>What are the next steps? </li></ul><ul><li>Review the From Here to  Security materials </...
From Here to Security SM <ul><li>How Can David Help? </li></ul><ul><li>Determine appropriate coverage based on your  perso...
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Disability Insurance

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Here\'s a quick step by step overview of Income Protection. Contact me for more information or a meeting. It\'s my pleasure to help you answer your questions.

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Disability Insurance

  1. 1. Presented By David C. Cochrane Principal Financial Group Based on the experience of Principal Life financial representatives and clients across America From Here to Security SM A Step-by-Step Guide to Income Protection
  2. 2. From Here to Security SM <ul><li>While this communication may be used to promote or market a transaction or an idea that is discussed in the publication, it is intended to provide general information about the subject matter covered and is provided with the understanding that The Principal is not rendering legal, accounting, or tax advice. It is not a marketed opinion and may not be used to avoid penalties under the Internal Revenue Code. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements. </li></ul>A Step-by-Step Guide to Disability Income Insurance Principal Life Insurance Company, Des Moines, Iowa 50392 DI 2186-1 | 04/2009 | # 2980042011 WE’LL GIVE YOU AN EDGE SM
  3. 3. From Here to Security SM <ul><li>Why do you work? </li></ul><ul><li>To pay the bills </li></ul><ul><li>To secure your future </li></ul><ul><li>To accomplish something </li></ul><ul><li>To make your life work </li></ul>A Step-by-Step Guide to Disability Income Insurance
  4. 4. From Here to Security SM <ul><li>What if you become too sick or hurt to work? </li></ul><ul><li>What would happen to your income? </li></ul><ul><li>How would you maintain your lifestyle? Pay your bills? </li></ul><ul><li>What would happen to your retirement savings and other financial goals? </li></ul>A Step-by-Step Guide to Disability Income Insurance
  5. 5. From Here to Security SM <ul><li>The time to address financial security is now! </li></ul><ul><li>Back to the fundamentals. </li></ul><ul><li>Risk protection products are critical. </li></ul><ul><li>Americans looking for ways to be financially </li></ul><ul><li>secure. </li></ul>A Step-by-Step Guide to Disability Income Insurance
  6. 6. From Here to Security SM <ul><li>Three - step process </li></ul><ul><li>Step 1: Understand the need for income protection </li></ul><ul><li>Step 2: Protect your plan and your income </li></ul><ul><li>Step 3: Review your plan regularly </li></ul>A Step-by-Step Guide to Disability Income Insurance
  7. 7. From Here to Security SM <ul><li>Step 1: Understanding the need </li></ul><ul><li>51.2 million Americans have some level of disability. They represent 18% of the population. </li></ul><ul><li>Source: U.S. Census Bureau, July 2006 </li></ul><ul><li>Almost 3 in 10 workers entering the workforce today will become disabled before retirement. </li></ul><ul><li>Source: Social Security Administration, Fact Sheet, January 2007 </li></ul><ul><li>The average duration of a long-term disability is 30 months. </li></ul><ul><li>Source: JHA Disability Fact Book, 2006 </li></ul>A Step-by-Step Guide to Disability Income Insurance
  8. 8. From Here to Security SM <ul><li>Disabilities play no favorites </li></ul><ul><li>The causes of disability may surprise you. Here’s a typical breakdown (by percentage of claims) of some typical reasons an individual may become disabled. </li></ul>A Step-by-Step Guide to Disability Income Insurance
  9. 9. From Here to Security SM <ul><li>Step 2: Protect your plan and your income </li></ul>A Step-by-Step Guide to Disability Income Insurance Disability income insurance has certain limitations and exclusions. For costs and complete details of coverage, contact your Principal Life financial representative. How solid is your financial foundation?
  10. 10. From Here to Security SM <ul><li>What is your most valuable asset? </li></ul><ul><li>Your home may be your biggest asset, but your ability to work and earn an income is your most valuable asset. </li></ul>A Step-by-Step Guide to Disability Income Insurance 1 carbuyersnotebook.com, February 2008 2 Average U.S. existing home sale price, 2008, National Association of REALTORS ®, www.realtor.org . 3 Projected cumulative income, 35-year-old earning $6,250/month assuming 4% annual increase to age 65
  11. 11. From Here to Security SM What is your earnings potential? Potential Earnings to Age 65 (with 5% annual salary increases) A Step-by-Step Guide to Disability Income Insurance
  12. 12. From Here to Security SM <ul><li>Available disability income sources </li></ul><ul><li>Savings </li></ul><ul><li>Borrowing </li></ul><ul><li>Group long-term disability insurance coverage </li></ul><ul><li>Social Security </li></ul><ul><li>Worker’s Compensation </li></ul>A Step-by-Step Guide to Disability Income Insurance
  13. 13. From Here to Security SM <ul><li>Savings </li></ul><ul><li>Most people don’t have enough savings. </li></ul><ul><li>One year of disability could wipe out your savings. </li></ul><ul><li>You won’t be able to continue saving for retirement. </li></ul><ul><li>Borrowing </li></ul><ul><li>What bank will give you a loan without any income sources? </li></ul>A Step-by-Step Guide to Disability Income Insurance
  14. 14. From Here to Security SM <ul><li>Group long-term disability (LTD) insurance coverage </li></ul><ul><li>Excellent employer- provided benefit – and a great start to your foundation </li></ul><ul><li>Benefits usually taxable and have limits </li></ul>A Step-by-Step Guide to Disability Income Insurance Chart based on $6,250 gross monthly income ($75,000 annual), with 60% group LTD insurance, assuming a 30% tax bracket for Federal, State and FICA Could you live on only 42% of your income?
  15. 15. From Here to Security SM <ul><li>Social Security </li></ul><ul><li>Initially deny 65% of all claims </li></ul><ul><li>Must meet four conditions </li></ul><ul><li>Six-month waiting period </li></ul><ul><li>Benefits typically replace only a fraction of pre-disability income </li></ul>A Step-by-Step Guide to Disability Income Insurance
  16. 16. From Here to Security SM <ul><li>Workers’ Compensation </li></ul><ul><li>Covers only work-related illness or injury on the job </li></ul><ul><li>Coverage and benefits vary </li></ul>A Step-by-Step Guide to Disability Income Insurance
  17. 17. From Here to Security SM <ul><li>You have a lot to lose </li></ul>A Step-by-Step Guide to Disability Income Insurance <ul><li>Current standard of living </li></ul><ul><li>Future earnings </li></ul><ul><li>Your home </li></ul><ul><li>Retirement savings and other assets </li></ul><ul><li>Insurability </li></ul><ul><li>Credit rating </li></ul><ul><li>Peace of mind </li></ul>
  18. 18. From Here to Security SM <ul><li>Protect your ability to work and earn an income with Individual Disability Income (DI) insurance from Principal Life Insurance Company </li></ul>A Step-by-Step Guide to Disability Income Insurance
  19. 19. From Here to Security SM <ul><li>Individual Disability Income insurance </li></ul><ul><li>Premiums and benefits are guaranteed through age 65 </li></ul><ul><li>Tax-free benefits (when paid with after-tax dollars) </li></ul><ul><li>Quality benefit provisions </li></ul><ul><li>Can be used as stand alone coverage or can supplement existing group disability insurance (if available) </li></ul><ul><li>Bonuses and incentive pay can be covered </li></ul><ul><li>Policy and discounts are fully portable [remove if not a worksite offering] </li></ul><ul><li>Payment options available (employer-paid or employee- paid) [remove if not a worksite offering] </li></ul>A Step-by-Step Guide to Disability Income Insurance
  20. 20. From Here to Security SM <ul><li>Step 3: Review your plan regularly </li></ul><ul><li>Pick a day you’ll remember </li></ul><ul><li>Some events demand immediate attention </li></ul>A Step-by-Step Guide to Disability Income Insurance <ul><li>Marriage or divorce </li></ul><ul><li>Birth or adoption of a child </li></ul><ul><li>Children graduating from college or leaving home </li></ul><ul><li>Inheritance or other windfall </li></ul><ul><li>Major increase in debt, including the purchase of a new home </li></ul><ul><li>Paying off the mortgage </li></ul><ul><li>New job or promotion </li></ul><ul><li>Death of a spouse </li></ul><ul><li>Changing a beneficiary </li></ul>
  21. 21. From Here to Security SM <ul><li>What your review may discover </li></ul><ul><li>You’re well protected </li></ul><ul><li>Your situation has changed and your coverage can be adjusted to reflect the change </li></ul>A Step-by-Step Guide to Disability Income Insurance
  22. 22. From Here to Security SM <ul><li>What are the next steps? </li></ul><ul><li>Review the From Here to Security materials </li></ul><ul><li>Schedule a From Here to Security Review </li></ul>A Step-by-Step Guide to Disability Income Insurance
  23. 23. From Here to Security SM <ul><li>How Can David Help? </li></ul><ul><li>Determine appropriate coverage based on your personal situation </li></ul><ul><li>Determine appropriate policy features and riders </li></ul><ul><li>Help complete forms </li></ul><ul><li>Regularly review your plan </li></ul><ul><li>Help submit any claims for benefits </li></ul>A Step-by-Step Guide to Disability Income Insurance
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