3. What is your most valuable asset?
Your home may be your
biggest asset, but your ability
to work and earn an income
is your most valuable asset.
1
Motor Trend, January 2005
2
www.investmenttools.com, May 2006
3
Projected cumulative income, 35-year-old earning $6,250/month assuming 4% annual increase to age 65
4. Potential Earnings to Age 65 (with 5% annual salary increases)
What is your earnings potential?
5. The Need
Approximately 30% of all people aged 35 to 65 will
suffer a disability for at least 90 days, and about one
in seven can expect to become disabled for five years
or more.*
*Health Insurance of America, 2000
6. Times are different now.
What used to cause death, now causes disability…
For example, deaths due to hypertension are down 73%,
while disabilities due to hypertension have increased by 70%.
7. Disabilities play no favorites
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.
8. Source: Principal Life Disability Insurance claims
incurred as of March 2007. The above is for
illustration purposes only and is not intended
as an inclusive representation of all claims.
Real claims, it
can happen ….
9. Which job would you rather have?
* $100,000 less $1,500 in hypothetical annual disability income insurance premiums. Hypothetical premium amount paid and
hypothetical annual benefit amount received depends on various factors. Your Financial Representative can illustrate the exact
amount eligible for based on current underwriting guidelines.
10. Could you afford your home without your
income?
48% of all home foreclosures are due
to a disability.1
1 out of every 18 mortgages are not
being paid because of a disability to the
mortgage holder.2
Protect your mortgage with a disability income
insurance policy from Principal Life Insurance
Company.
1 - National Underwriter, May 2002
2 - National Underwriter, May 2002 / HUD 1998
11. Can you live on 42% of your income?
Is employer-provided
group long-term disability
(LTD) insurance coverage
enough?
Chart based on $6,250 gross monthly income ($75,000 annual), with 60% Group long-term
disability program, assuming a 30% tax bracket for Federal, State and FICA
12. Are you covered?
Expenses
Housing
Utilities
Groceries
Child Care
College Tuition
Retirement
Auto Payments
Credit Cards
Loan payments
Other Insurance
Premiums
Miscellaneous
Disability-Related
Expenses
$ __________________
$ __________________
$ __________________
$ __________________
$ __________________
$ __________________
$ __________________
$ __________________
$ __________________
$ __________________
$ __________________
$ __________________
List your expenses and possible sources of income you would have if you were unable
to work due to an injury or illness.
Income
Social Security
Current DI
Coverage
Other Sources
$ __________________
$ __________________
$ __________________
$ __________________
Total Expenses: $_________
Total Income Shortage: $_________
Disability Income Insurance has certain limitations and
exclusions. For costs and complete details of coverage,
contact your Principal Life representative.
Solution: Individual Disability
Income insurance
When you fail to protect your income, your dreams for a comfortable retirement, college education for the kids, or passing on assets may not become a reality.
This diagram shows how to make plans for your financial future. Protecting assets is the foundation of a solid financial plan. Insurance helps you prepare for the unexpected: property damage, medical expenses, loss of life, and loss of income due to disability. Removing your income from the foundation can cause your financial plan to come tumbling down.
You insure your home, your cars, but what about your income? The ability to work and earn an income may be your most valuable asset.
What would you if you became too sick or hurt to work? If you’re like most people, you would probably find it hard to maintain your current lifestyles.
If asked, most of us would consider our home or our savings our most valuable asset. Actually, our most valuable asset could be considered our ability to earn the income that provides the resources and security so important to our families.
Did you know that 30% of those aged 30 to 65 will, during their work career, experience a disability that will last at least three months. One in seven of us will be disabled for five years or more.
This statistic may strike you as high but there are reasons for the high incidence of disability.
The causes of disability may surprise you! Here’s a breakdown (by percentage of claims) of some typical reasons an individual may become disabled.
With Individual Disability Income insurance from Principal Life, you can feel secure in knowing that by helping to protect one of your most valuable assets, your ability to work and earn an income – you can reduce the financial strain even a short-term disability can cause if you become too sick or hurt to work.
WHICH JOB WOULD YOU RATHER HAVE?
For only a small percentage of your salary, Principal Life can help replace a portion of your income and help protect what it provides if you become too sick or hurt to work.
How would you meet one of the biggest financial obligations you face each month if you became too sick or hurt to work?
• Did you know that 48% of all home foreclosures are due to serious medical problems? (National Underwriter, May 2002)
• More than 40% of U.S. workers risk losing their homes and ability to support their families because they lack income replacement protection if a disability strikes.
(Hartford Financial Services Group, Inc., study, Oct. 2003)
• Most people’s savings will cover less than six months of expenses. (Business Almanac, 1997)
• Nearly half of the one million Americans who filed for bankruptcy protection in 1999 did so after being sidelined by an unexpected illness or injury.
(New York Post, April 3, 2000, “There’s No Insuring You Won’t Go Bankrupt”)
A Solution: Individual Disability Income insurance from Principal Life Insurance Company can help you pay for your expenses during a disability!
