Disability insurance –  Could you afford  not  to have it?
Agenda <ul><li>Why do you need disability insurance? </li></ul><ul><li>How does it work? </li></ul><ul><li>What are the op...
Whether it's…
<ul><li>mortgage or rent </li></ul>
<ul><li>groceries </li></ul>
car payments
daycare
<ul><li>tuition fees </li></ul>
<ul><li>Or any other expenses… </li></ul>
<ul><li>We all have bills to pay… every month … </li></ul>
And if suddenly, <ul><li>you were unable to work and earn an income </li></ul><ul><li>What would you do? </li></ul>
<ul><li>What do you think your most valuable asset is? </li></ul><ul><li>Is it your property… your vehicle… your investmen...
Everybody is millionaire! <ul><li>Your income is a most valuable asset that you will acquire during your lifetime. </li></...
From the other perspective… <ul><li>When you buy a car: </li></ul><ul><li>You call immediately car insurer to protect it! ...
From the other perspective… <ul><li>When you buy a house: </li></ul><ul><li>You call immediately home insurer to protect i...
From the other perspective… <ul><li>When you buy stainless steel appliances: </li></ul><ul><li>You will probably insure th...
From the other perspective… <ul><li>But when you earn your salary and have no disability protection to protect it, do you ...
Reality in case of illness or accident DESJARDINS FINANCIAL SECURITY |  Revenues Expenses Disability
How long could you live off your savings? <ul><li>A long-term disability (90 days & +) can be bad for your financial secur...
Probability of becoming disabled before age 65 and average duration of disability for 90 days or more DESJARDINS FINANCIAL...
How does disability insurance work? <ul><li>It pays you a monthly benefit: </li></ul><ul><li>… to replace your income  </l...
Main components <ul><li>Monthly benefit </li></ul><ul><li>Waiting period </li></ul><ul><li>Benefit period </li></ul>DESJAR...
Options <ul><li>Regular occupation period </li></ul><ul><ul><li>2-year </li></ul></ul><ul><ul><li>5-year </li></ul></ul><u...
SOLO Disability Income  unique features <ul><li>1 </li></ul>DESJARDINS FINANCIAL SECURITY |  <ul><li>1st day in case of ho...
SOLO Disability Income  unique features <ul><li>2 </li></ul>DESJARDINS FINANCIAL SECURITY |  <ul><li>1 st  $1,200 guarante...
SOLO Disability Income  unique features <ul><li>3 </li></ul>DESJARDINS FINANCIAL SECURITY |  <ul><li>5 x your monthly bene...
Covered critical illnesses <ul><li>Cancer </li></ul><ul><li>Heart attack </li></ul><ul><li>Stroke </li></ul><ul><li>Corona...
SOLO Disability Income  unique features <ul><li>4 </li></ul>DESJARDINS FINANCIAL SECURITY |  <ul><li>An extra 5% paid on t...
SOLO Disability Income  unique features <ul><li>5 </li></ul>DESJARDINS FINANCIAL SECURITY |  <ul><li>5 x the monthly benef...
SOLO Disability Income  unique features DESJARDINS FINANCIAL SECURITY |  <ul><li>Regular occupation period </li></ul><ul><...
Which job would you choose? <ul><li>Job A </li></ul><ul><li>$33,000 per year </li></ul><ul><li>$0 if you become disabled <...
How much does it cost? DESJARDINS FINANCIAL SECURITY |  <ul><li>PLUS Future insurability option $1,000 </li></ul>Classific...
Next steps DESJARDINS FINANCIAL SECURITY |  <ul><li>Medical questionnaire </li></ul><ul><li>Medical questionnaire, nurse v...
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Solo disability income

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  • Through this presentation and with your help, the client will realize the importance of disability insurance. He should also become familiar with different concepts related to disability insurance.
  • Listing all current expenses that your client must pay on a daily basis, he will realize that if he cannot his earn income, there will be nobody to pay his expenses. Ask following questions: Could you retire now, and stop working? If your spouse has no job, could you maintain the same lifestyle? If your spouse is sick, could you maintain the same lifestyle while paying higher medical expenses that result from disability?
  • Everyone is a millionaire, except that people are not aware. From this perspective, your lifetime earnings are probably greater than the combined value of your other assets. Therefore, the most valuable asset from a financial point of view is your earning power! It certainly enables you to maintain or even increase the life style you and your family deserve. A prolonged loss of income causes major financial loss if the client has no disability insurance in force. 3% salary increase.
  • *Inheritance is excluded.
  • Source: 1985 Commissioners Individual Disability Table A
  • Explain in simple terms how a disability insurance works.
  • Explain in simple terms how a disability insurance works.
  • Explain those four riders. Why do we need them? Example regular occupation: if my client is mechanic and can no longer perform his job, but can do something else related to his experience and education (garage receptionist, coordinator, etc..), the insurer will stop paying disability benefits after 24 months unless the client has regular occupation rider.
  • Example: the person has a heart attack and is hospitalized. After two months, he returns to work. If the waiting period is 90 days, the client will not benefit from his disability insurance, unless he has first day in case of hospitalization feature (already included in Solo).
  • You have to master the concepts of integration and coordination in order to explain to the client.
  • Job B: Solo and other income replacement insurance products generally offer benefit that corresponds to 90% of net income.
  • Examples of premiums according to age.
  • Medical requirements depending on the amount subscribed.
  • Solo disability income

    1. 1. Disability insurance – Could you afford not to have it?
    2. 2. Agenda <ul><li>Why do you need disability insurance? </li></ul><ul><li>How does it work? </li></ul><ul><li>What are the options? </li></ul><ul><li>SOLO Disability Income features </li></ul><ul><li>Examples </li></ul><ul><li>How can you buy it? </li></ul>DESJARDINS FINANCIAL SECURITY |
    3. 3. Whether it's…
    4. 4. <ul><li>mortgage or rent </li></ul>
    5. 5. <ul><li>groceries </li></ul>
    6. 6. car payments
    7. 7. daycare
    8. 8. <ul><li>tuition fees </li></ul>
    9. 9. <ul><li>Or any other expenses… </li></ul>
    10. 10. <ul><li>We all have bills to pay… every month … </li></ul>
    11. 11. And if suddenly, <ul><li>you were unable to work and earn an income </li></ul><ul><li>What would you do? </li></ul>
    12. 12. <ul><li>What do you think your most valuable asset is? </li></ul><ul><li>Is it your property… your vehicle… your investments …something else? </li></ul>DESJARDINS FINANCIAL SECURITY | Age $24,000 $36,000 $60,000 $120,000 25 $1.809,630 $2.714,445 $7.247,986 $14.495,973 30 $1.451,090 $2.176,635 $5.419,218 $10.838,437 35 $1.141,810 $1.712,715 $3.986,331 $7.972,662 40 $875,022 $1.312,534 $2.863,626 $5.727,252 45 $644,889 $967,333 $1.983,957 $3.967,914 50 $446,374 $669,561 $1.294,714 $2.589,428 55 $275,133 $412,700 $754,673 $1.509,347
    13. 13. Everybody is millionaire! <ul><li>Your income is a most valuable asset that you will acquire during your lifetime. </li></ul><ul><li>That is why : </li></ul><ul><li>Disability Insurance </li></ul><ul><li>= </li></ul><ul><li>Basis of your financial security </li></ul>DESJARDINS FINANCIAL SECURITY |
    14. 14. From the other perspective… <ul><li>When you buy a car: </li></ul><ul><li>You call immediately car insurer to protect it! </li></ul>DESJARDINS FINANCIAL SECURITY | À L'USAGE EXCLUSIF DES CONSEILLERS /57
    15. 15. From the other perspective… <ul><li>When you buy a house: </li></ul><ul><li>You call immediately home insurer to protect it! </li></ul>DESJARDINS FINANCIAL SECURITY | À L'USAGE EXCLUSIF DES CONSEILLERS /57
    16. 16. From the other perspective… <ul><li>When you buy stainless steel appliances: </li></ul><ul><li>You will probably insure them if something goes wrong. </li></ul>DESJARDINS FINANCIAL SECURITY | À L'USAGE EXCLUSIF DES CONSEILLERS /57
    17. 17. From the other perspective… <ul><li>But when you earn your salary and have no disability protection to protect it, do you buy disability insurance right away? </li></ul><ul><li>Disability Insurance </li></ul><ul><li>= </li></ul><ul><li>Basis of your financial security </li></ul><ul><li>If you have no income, will you have enough money to pay your house, your car, your appliances, your other insurances if disabled? </li></ul>DESJARDINS FINANCIAL SECURITY |
    18. 18. Reality in case of illness or accident DESJARDINS FINANCIAL SECURITY | Revenues Expenses Disability
    19. 19. How long could you live off your savings? <ul><li>A long-term disability (90 days & +) can be bad for your financial security! </li></ul>DESJARDINS FINANCIAL SECURITY | If you save for: 5 % of your income 10 % of your income 15 % of your income 2 years 1 ½ months 3 months 4 ½ months 5 years 3 ½ months 7 ½ months 11 months 10 years 7 ½ months 1 year et 3 months 1 year et 10 months
    20. 20. Probability of becoming disabled before age 65 and average duration of disability for 90 days or more DESJARDINS FINANCIAL SECURITY | Age Probability Average duration 25 40% 2 years and 2 months 30 39% 2 years and 8 months 35 37% 3 years and 1 month 40 34% 3 years and 6 months 45 31% 3 years and 11 months 50 26% 4 years and 2 months 55 21% 4 years and 5 months
    21. 21. How does disability insurance work? <ul><li>It pays you a monthly benefit: </li></ul><ul><li>… to replace your income </li></ul><ul><li>… when you are not able to work </li></ul><ul><li>… due to an illness or accident </li></ul>DESJARDINS FINANCIAL SECURITY |
    22. 22. Main components <ul><li>Monthly benefit </li></ul><ul><li>Waiting period </li></ul><ul><li>Benefit period </li></ul>DESJARDINS FINANCIAL SECURITY |
    23. 23. Options <ul><li>Regular occupation period </li></ul><ul><ul><li>2-year </li></ul></ul><ul><ul><li>5-year </li></ul></ul><ul><ul><li>Up to 65 years </li></ul></ul><ul><li>Residual or partial disability </li></ul><ul><li>Cost of living </li></ul><ul><li>Future insurability option </li></ul>DESJARDINS FINANCIAL SECURITY |
    24. 24. SOLO Disability Income unique features <ul><li>1 </li></ul>DESJARDINS FINANCIAL SECURITY | <ul><li>1st day in case of hospitalization or day surgery (For waiting periods of 90 days and less) </li></ul>No
    25. 25. SOLO Disability Income unique features <ul><li>2 </li></ul>DESJARDINS FINANCIAL SECURITY | <ul><li>1 st $1,200 guaranteed </li></ul><ul><li>No integration and no coordination apply for the first 36 months </li></ul>No
    26. 26. SOLO Disability Income unique features <ul><li>3 </li></ul>DESJARDINS FINANCIAL SECURITY | <ul><li>5 x your monthly benefit if you </li></ul><ul><li>are diagnosed with 1 of the 25 </li></ul><ul><li>critical illnesses </li></ul><ul><li>Disabled or not </li></ul><ul><li>Paid on top of your benefit </li></ul>No
    27. 27. Covered critical illnesses <ul><li>Cancer </li></ul><ul><li>Heart attack </li></ul><ul><li>Stroke </li></ul><ul><li>Coronary Artery Bypass Surgery </li></ul><ul><li>Multiple sclerosis </li></ul><ul><li>Parkinson </li></ul><ul><li>Paralysis </li></ul><ul><li>Kidney failure </li></ul><ul><li>… </li></ul>DESJARDINS FINANCIAL SECURITY | Total: 25 illnesses!
    28. 28. SOLO Disability Income unique features <ul><li>4 </li></ul>DESJARDINS FINANCIAL SECURITY | <ul><li>An extra 5% paid on top of the benefit starting on the 13th month of your disability income payment (in a DFS savings account) </li></ul><ul><li>If $2,000 benefit , it means an extra of $100! </li></ul>No
    29. 29. SOLO Disability Income unique features <ul><li>5 </li></ul>DESJARDINS FINANCIAL SECURITY | <ul><li>5 x the monthly benefit in case of death </li></ul><ul><li>(Paid if the death occurs while receiving disability benefits) </li></ul>No
    30. 30. SOLO Disability Income unique features DESJARDINS FINANCIAL SECURITY | <ul><li>Regular occupation period </li></ul><ul><li>Residual or partial disability </li></ul><ul><li>Cost of living </li></ul><ul><li>Future insurability option </li></ul><ul><li>Return of premium: up to 50% </li></ul>Furthermore, you could add those options:
    31. 31. Which job would you choose? <ul><li>Job A </li></ul><ul><li>$33,000 per year </li></ul><ul><li>$0 if you become disabled </li></ul>DESJARDINS FINANCIAL SECURITY | <ul><li>Job B </li></ul><ul><li>$32,000 per year </li></ul><ul><li>90% of your net income up to age 65 if you become disabled </li></ul>
    32. 32. How much does it cost? DESJARDINS FINANCIAL SECURITY | <ul><li>PLUS Future insurability option $1,000 </li></ul>Classification 120 days Up to age 65 2A $1,850/month Age 25 30 35 40 45 50 55 Female $67 $80 $95 $125 $171 $213 $233 Male $53 $63 $78 $106 $151 $196 $225
    33. 33. Next steps DESJARDINS FINANCIAL SECURITY | <ul><li>Medical questionnaire </li></ul><ul><li>Medical questionnaire, nurse visit, urine test </li></ul>Monthly benefit Age 18 to 45 years 46 to 55 years $0 to $2,000 1 1 $2,001 to $3,999 1 2
    34. 34. Thank you!
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