The document is a comprehensive workbook on disability insurance authored by Tony Steuer, aimed at educating readers about the importance of income protection against disabilities. It covers various aspects including the need for disability income insurance, types of coverage, evaluating needs, choosing an advisor, and maintaining insurance policies. Key statistics and actionable advice are provided to help individuals plan financially for potential disabilities.

1. H O W W I L L T H I S W O R K B O O K
A N S W E R Y O U R Q U E S T I O N S ?
THE QUESTIONS AND
ANSWERS ON DISABILITY
INSURANCE WORKBOOK
Created by the author of Questions & Answers on Life Insurance
Tony Steuer, CLU, LA, CPFFE with Maxwell Schmitz

2. By Tony Steuer, CLU, LA, CPFFE Visit: www.lifeinsurancesage.com
AUTHOR OF:
TONY STEUER, CLU, LA, CPFFE

3. By Tony Steuer, CLU, LA, CPFFE Visit: www.tonysteuer.com
TONY STEUER, CLU, LA, CPFFE
• Author, Advocate and
educator for insurance
literacy
• Director of Financial
Preparedness:United
Policyholders
• Member: California
Department of Insurance
Curriculum Board
• Member: National
Financial Educators
Council Curriculum
Advisory Board

4. By Tony Steuer, CLU, LA, CPFFE Visit: www.tonysteuer.com
THIS PRESENTATION WILL GIVE YOU AN
OVERVIEW OF THE QUESTIONS AND ANSWERS
ON DISABILITY INSURANCE WORKBOOK
This presentation:
• Highlights important topics
in the workbook;
• Gives you simple answers to
the top questions on
disability insurance; and
• Helps you to know the right
questions in order to plan
well and spend wisely.

5. By Tony Steuer, CLU, LA, CPFFE Visit: www.tonysteuer.com
EVALUATE YOUR
NEEDS & SITUATION
Take charge! It’s your money, so
plan your way to smart spending.
• Disability Income insurance
provides a monthly a cash
benefit when you are disabled
(fully or partially) as a result of
accident or sickness.
• Disability Insurance replaces
your income.
• If you are dependent upon your
earned income, then you need
disability income insurance

6. www.lifeinsurancesage.com
WHAT ARE YOUR ODDS?
• 3 in 10 workers entering the workforce today will become disabled
for some period of time before they retire
(Social Security Administration, Fact Sheet, January 31, 2007)
• More than 90% of disabling accidents and illnesses
are not work related, which means they aren’t
covered by worker’s compensation insurance
(National Safety Council, Injury Facts, 2004)
• 56% of workers who currently receive Social Security disability
benefits are under age 55
(Social Security Administration, 2007 Annual Statistical Report)
YOUR RISKS:

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WHAT IS YOUR NEED?
DISABILITY INSURANCE WORKSHEET
1. Monthly/annual income needed.
2. Monthly income that would continue
even if you were disabled.
3. Gap between monthly expenses and
monthly income in the event of a total
disability.
4. Possible Future Expenses
5. Assets
What you have = assets - liabilities
WHAT YOU NEED VS. WHAT YOU HAVE
What you have
after injury
What you had
before injury
(salary + assets)

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WHAT IS YOUR NEED?
TYPES OF INCOME PROTECTION THAT MAY COVER YOU
4 1. Social Security Disability Insurance or
other federal programs
2. Workers’ Compensation
Insurance
3. State Disability
Programs
4. Group Disability Insurance
from Employers or Associations

9. www.lifeinsurancesage.com
GROUP DISABILITY
FROM EMPLOYERS OR ASSOCIATIONS
• Typically affordable, but taxable.
• Typically replaces at least half of your salary.
• Often excludes coverage of bonuses and
commission
In states where employers are required to
provide short term disability, coverage is
often low.
Employee Retirement Income Security Act of 1974 (ERISA) offers substantially less protection to
the consumer if there is a need to sue. ERISA can limit punitive damages.

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INDIVIDUAL DISABILITY
DO YOU NEED IT?
• Can be used to supplement group long-term disability.
• Often lower premiums than with group policies.
• Will include coverage of commission and bonuses.
• Some employers don’t offer group coverage
I’ll take an individual policy
with my group policy.
Individual
Policy
Group Policy

11. By Tony Steuer, CLU, LA, CPFFE Visit: www.tonysteuer.com
CHOOSING AN ADVISOR
• Check on whether the professional working with
you is properly licensed with the Department of
Insurance in your State (and for Variable Products
with FINRA) at: www.lifeinsurancesage.com
• What are there qualification & designations?
Chartered Life Underwriter’s (CLU’s) have
comprehensive Insurance training (use
www.designationcheck.com to confirm)
• Be aware of rogue designations - See the California
Department of Insurance Bulletin on Senior
Designations.
• Find an advisor at the Society of Financial Services
Professional (SFSP) website (www.financialpro.org)
or at the LIFE website (www.lifehappens.org)

12. By Tony Steuer, CLU, LA, CPFFE Visit: www.tonysteuer.com
EVALUATING LIFE INSURANCE COMPANIES
The workbook gives you details on how
insurance companies are rated so that you
can evaluate your company, and explains:
• Financial Strength Ratings
• What these ratings are & where to
find them
• Financial Analysis
• Ethical Standards
• NAIC/State Insurance Department -
Complaints (for Variable Products -
FINRA)
Visit www.tonysteuer.com
for links to rating services,
NAIC & FINRA

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WHAT IS YOUR NEED?
WHERE TO START WITH SO MANY OPTIONS?
• The devil is in the details as to how
and when the companies pay
benefits.
• Customize the parameters on your
policy for lower premiums and higher
benefits.
• There is no sense in being insurance
rich and cash poor.
The details can make a big difference!

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FACTORS THAT AFFECT RATES
3 MAIN FACTORS THAT AFFECT RATES:
Work patterns
Occupation
Health

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DESIGN YOUR POLICY
POLICY APOLICY A POLICY BPOLICY B
Product Feature Amount/ Options/
Limitations
Premium Amount/ Options/
Limitations
Premium
What is the base benefit amount?
What is the definition of disability and
occupation coverage?
What is the definition of sickness?
How long is the benefit period?
What is the waiting (elimination) period?
Is the policy non-cancelable?
Is the policy guaranteed renewable?
KEY CONSIDERATIONS

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APPLICATION PROCESS
BE ACCURATE AND COMPLETE
1. Compile needed info:
• Physician and medical group names.
• Required financial documentation.
• Additional questionnaires.
2. Complete application and required forms and submit.
3. Prepare for physical and personal history interview.
4. Brace for any modifications
5. Make final decision.
6. If your application is modified/rejected, understand why.
7. Choose how often you pay your premium.

17. By Tony Steuer, CLU, LA, CPFFE Visit: www.tonysteuer.com
UNDERSTAND, MAINTAIN &
MONITOR YOUR POLICY
The workbook reviews what you need to know
after you’ve obtained a policy (or found an old
policy in a drawer.)
Policies are living things. Keep track of them!
Key information is explained so that you can
decide to keep, replace or terminate a policy.

18. By Tony Steuer, CLU, LA, CPFFE Visit: www.tonysteuer.com
FREQUENCY OF PAYMENT
It matters how frequently you choose to pay your insurance. Changing how
often you pay can save you a lot of money (especially on term insurance).
FREQUENCY OF PAYMENT
MONTHLY
ANNUAL
COST(%extrayoupay)
SEMI-ANNUAL
Click here to
open an online
calculator
QUARTERLY
3.92 - 8%
4-20%
2-6%
0%

19. www.tonysteuer.com
Check up on
insurance policy
ASSESSING AND MONITORING
YOUR POLICY
MONITORING
Policies are living things. Keep track of them!

20. www.tonysteuer.com
ASSESSING AND MONITORING
YOUR POLICY
ALSO CONSIDER:
• Exclusion Reviews for Removal: Often an individual policy
has exclusions for certain conditions, such as recent wrist
injury* or illness, in which case any disability resulting from
that injury or illness would not be covered.
• Future Purchase Option: With this, you can purchase
more coverage without evidence of insurability at certain
times if your income has increased.
*excluded
Check out the workbook for a worksheet that may be helpful in assessing these items
salary
coverage
• Future Increase Option (FIO): The policyholder can
reserve the right to increase coverage at certain times by
paying extra.

21. www.tonysteuer.com
ENDING OR REPLACING
A POLICY
READ CAREFULLY BEFORE ACTING
• An individual disability insurance policy can
usually easily be terminated with a phone call.
• Before terminating, read your policy carefully and review with
your advisor and/or the company. Things to consider:
• Newer coverage is most likely more expensive and not as
favorable.
• If you’re terminating due to a cash crunch, consider
making changes to the policy rather than terminating.
• Modifications are permanent and cannot be undone.
• Replacing a policy is not usually recommended. Make sure
there’s a good reason.
The details can make a
big difference!

22. www.tonysteuer.com
FILE A CLAIM
ACT QUICKLY
If you become injured:
• Immediately get in contact with your
insurance company — the claims
department.
• Fill out a claims form within 30 days.
• If you have group disability, you must also
apply for any social benefits for which
you may be eligible.
You have 30
days

23. www.tonysteuer.com
REVIEW: INCOME PROTECTION
1. Don't just assume you are covered
2. Do Your Homework
3. Every company is different
4. It matters how frequently you pay your insurance.
5. Monitor your policy
WHAT YOU NEED VS. WHAT
YOUR EMPLOYER OFFERS
What you
need What your
employer
offers
I thought I’d at
least get an ice
cream!
COST
MONTHLY
ANNUALLY
BI-ANNUALLY
Insurance policies must be monitored over time
Check up on
insurance policy
1
2
3
4
5

24. By Tony Steuer, CLU, LA, CPFFE Visit: www.tonysteuer.com
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25. W W W. T O N Y S T E U E R . C O M
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