Topics for DiscussionTopics for Discussion

The Facts About Disability.

How Would You Be Affected?

What Is At Risk?

Do You Currently Have A Long Term Disability Plan?

Options.

The Facts About DisabilityThe Facts About Disability

2.7 to 1

3.3 to 13.5 to 1

2.8 to 1

2.2 to 1

0

0.5

1

1.5

2

2.5

3

3.5

27 37 42 47 52

Disability

Death

Disability is More Likely to Occur Than Death Disability is More Likely to Occur Than Death During Your Working YearsDuring Your Working Years

Source: Society of Actuaries, 1985.

Your Earning Potential$3,960,000 Age 32 at 120k a year

You Insure . . .

1 in 258 homes will catch on fire this year.**

But, What About . . .

Over 12 million people were disabled in home and public accidents in 1997

alone.#

Sources: *National Safety Council, 1997 Edition, **National Fire Protection Association, 1997 combined with U.S. Census Bureau 1996 estimate of housing units, #Accident Facts, 1998 Edition National Safety Council

Home$500,000

Automobile$40,000

1 in 68 drivers will be injured in an accident this year.*

The Facts About DisabilityThe Facts About Disability

Musculoskeletal26%

Circulatory18%

Mental/Nervous10%

Digestive7%

All Others14%

Other Brain Disorders7%

Eye/Ear3%

AIDS2%

Urinary/Genital7%

Respiratory6%

How People Are Becoming DisabledHow People Are Becoming Disabled

What is at Risk ...What is at Risk ...

Age $25,000/yr $50,000/yr $75,000/yr $100,000/yr

30 $875,000 $1,750,000 $2,625,000 $3,500,000

40 $625,000 $1,250,000 $1,875,000 $2,500,000

50 $375,000 $750,000 $1,125,000 $1,500,000

Potential Earnings to Age 65Potential Earnings to Age 65

How Would You Be Affected?How Would You Be Affected?

SavingsIf you save 10% annually,one year of disability maywipe out 10 years of savings!

Social SecurityOn average, 58% of all disabilityapplications over the last 30 yearshas been rejected by the SSA.*

Loan Without an income, who will lend you money?

Family, Friends, and Charity Do you want to depend on them?

Sell Investments Will you get the TRUE value?

Sources of Income When You Become DisabledSources of Income When You Become Disabled

*Source: Social Security Bulletin Annual Statistical Supplement, 2000.

How Would You Be Affected?How Would You Be Affected?

Disability is 265% More Likely than Death to Cause...Disability is 265% More Likely than Death to Cause...

One out of 18 mortgages are not being paid due to a disability of the mortgage holder!

Source: Department of Housing & Urban Development - FHA loans (originating 1968-1998) in a 90-day plus delinquency status as of 8/27/98.

The Problem and ConcernThe Problem and Concern

If you knew you would be Totally Disabled tomorrow…How Much

Disability Income Protection would you buy today?

Waiting Period: 90 Days

Benefit Period: To Age 65

Benefits are TAX-FREE

Total Disability

Extended Partial Disability

Typical Long Term Disability PlanTypical Long Term Disability Plan

Disability BenefitsDisability Benefits

Individual PlanBenefits

Begin after 90 Days

Payable to Age 65

How the plan worksHow the plan works

What To Look For in a What To Look For in a Policy...Policy...

Coverage Cannot be Cancelled as Long as Your Premiums are Paid

Your Premiums are Guaranteed NOT to Increase Before Age 65

Premiums are Waived During a Disability

Insurance is Fully Portable, can be available with a 15% Discount, unisex rates

Your Plan Can Be Customized to Meet Your Financial Needs

Long Term Disability PlanLong Term Disability Plan

Health

Premiums Uninsurable

Too Expensive

Why Obtain Coverage Now?

AGE 24 AGE 65

•GUARANTEED COVERAGE •LOCK IN LOWER RATES

Are You At Risk?Are You At Risk?

Sometimes we don’t find out

until it’s too late:

– Diabetes

– Heart Disease

– Cancer

– Hypertension

– Accidents

You Have A Choice ...You Have A Choice ...

Your Personalized, Your Personalized, Confidential Kit Will Include:Confidential Kit Will Include:

A Review of What is Being Offered to You A Review of What is Being Offered to You The Total Monthly Benefit Available To YouThe Total Monthly Benefit Available To You

Through This ProgramThrough This ProgramApplication FormsApplication Forms

The Next Steps -- Request Your Confidential KitThe Next Steps -- Request Your Confidential Kit