This document discusses individual disability insurance options presented by HFCB. It begins with an overview of the risks of becoming disabled compared to mortality risks. It then reviews an individual's current group long-term disability coverage through their employer which has a 180-day elimination period and covers 50% of salary up to $240,000. New optional plans are presented that could provide additional group or individual executive long-term disability coverage up to $26,000 per month combined. The document concludes by noting many employer disability benefits are insufficient and individuals should supplement their coverage.

1. Individual Disability Insurance
(IDI)
PRESENTED BY HFCB

2. Agenda
The Risk
Importance of Income Protection
Understanding Current Coverage
Review of New Options
Next Steps

3. The Risk
“I can’t live without my income, but I’m not doing much to protect it.”
CDA 2014 Consumer Disability Awareness Study

4. The Risk
Percent Greater Chance of Becoming Disabled for More Than
One-Year Versus Dying Within the Next Twelve Months
Society of Actuaries, Individual Disability Morbidity Tables, Accident and Sickness combined
American Council of Life Insurers, 2001 CSO Mortality Tables, Preferred Rate Class
Age
Americans with
Income > $70,000
35 120%
40 123%
45 139%
50 166%
55 230%
60 259%

5. Anybody who is financially dependent upon
their job for income has a need for disability
insurance.
And the total amount of coverage necessary is
not particularly difficult to calculate. You need
(at least) enough coverage to be able to
continue to pay your bills if you become
disabled.
Source: Wall Street Journal, February 3, 2015, “Why Your
Insurance at Work May Be Insufficient”
Importance of Income Protection

6. Current Coverage - The Basics
Item Group LTD
Elimination period 180 days
Core Plan
Employer paid
50% of salary
$240,000 earnings max
Group Buy-Up
Optional
60% of salary
$300,000 earnings max
Taxability of benefit Non-taxable

7. Current
Coverage -
Snapshot
Base Salary: $100,000
Bonus: + $25,000
Gross Annual Income: $125,000
Example

8. New Options - Overview
Item Group LTD Exec LTD Total
Elimination period 180 days 180 days 180 days
Premium Blend Optional Blend
Income replacement 60% 60% 60%
Covered earnings Salary
Salary, bonus and
commission
Salary, bonus and
commission
Max monthly benefit $15,000 $11,000 $26,000
Taxability of benefit Non-taxable Non-taxable Non-taxable

9. New Options -
Snapshot

10. New Options - Additional Considerations
No medical underwriting (subject to actively at work requirement)
25% corporate premium discount
Premiums guaranteed to remain level through age 65
Policy is portable at the same price
Additional monthly benefit payable for Catastrophic disability

11. Next Steps
Review your options
◦ Personalized kit mailed to your home address
To contact an HFCB policy consultant
◦ Helpline: 800-258-8429
◦ Email: CompassIDI@hfcb.com
Enrollment deadline: April 10, 2015

12. Conclusion
“A mistake many people make with corporate
benefits is to assume that the disability and
life-insurance coverage that they get
automatically through their work is sufficient.
In most cases, at least one of the two types of
insurance should be supplemented.”
Source: Wall Street Journal, February 3, 2015, “Why
Your Insurance at Work May Be Insufficient”