Transcript Diapositive 1

Disability insurance –
Could you afford not to have it?
Agenda
• Why do you need disability insurance?
• How does it work?
• What are the options?
• SOLO Disability Income features
• Examples
• How can you buy it?
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Whether it's…
mortgage or rent
groceries
car payments
daycare
tuition fees
or any other expenses…
We all
have
bills to
pay…
every
month…
And if suddenly,
you were unable to work and earn an income
What would you do?
What do you think your most valuable asset is?
Is it your property… your vehicle… your investments …something else?
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
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Everybody is millionaire!
Everybody is millionaire!
Your income is a most valuable asset
that you will acquire during your
lifetime.
That is why :
Disability Insurance
=
Basis of your financial security
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From the other perspective…
From the other perspective…
When you buy a car:
You call immediately
car insurer to protect
it!
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From the other perspective…
When you buy a
house:
You call
immediately home
insurer to protect it!
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From the other perspective…
When you buy stainless
steel appliances:
You will probably insure
them if something goes
wrong.
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From the other perspective…
But when you earn your salary and have no
disability protection to protect it, do you buy
disability insurance right away?
Disability Insurance
=
Basis of your financial security
If you have no income, will you have enough
money to pay your house, your car, your
appliances, your other insurances if disabled?
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Reality in case of illness or
accident
Revenues
Expenses
Disability
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How long could you live off your savings?
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
A long-term disability (90 days & +) can be bad for your financial
security!
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Probability of becoming disabled before age 65
and average duration of disability for 90 days or
more
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
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How does disability insurance
work?
It pays you a monthly benefit:
• to replace your income
• when you are not able to work
• due to an illness or accident
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Main components
1. Monthly benefit
2. Waiting period
3. Benefit period
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Options
• Regular occupation period
• 2-year
• 5-year
• Up to 65 years
• Residual or partial disability
• Cost of living
• Future insurability option
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SOLO Disability Income
unique features
1
No
• 1st day in case of
hospitalization or day surgery
(For waiting periods of 90 days and
less)
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SOLO Disability Income
unique features
No
2
• 1st $1,200 guaranteed
• No integration and no
coordination apply for the first
36 months
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SOLO Disability Income
unique features
3
No
5 x your monthly benefit if you
are diagnosed with 1 of the 25
critical illnesses
• Disabled or not
• Paid on top of your benefit
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Covered critical illnesses
•
•
•
•
•
•
•
•
•
Cancer
Heart attack
Stroke
Coronary Artery Bypass Surgery
Multiple sclerosis
Parkinson
Total: 25
Paralysis
illnesses!
Kidney failure
…
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SOLO Disability Income
unique features
4
• An extra 5% paid on top of the
benefit starting on the 13th
month of your disability
income payment (in a DFS
No
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savings account)
If $2,000 benefit, it means an extra
of $100!
SOLO Disability Income
unique features
5
• 5 x the monthly benefit in case
of death
No
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(Paid if the death occurs while
receiving disability benefits)
SOLO Disability Income
unique features
Furthermore,
you could
add those
options:
• Regular occupation period
• Residual or partial disability
• Cost of living
• Future insurability option
• Return of premium: up to 50%
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Which job would you choose?
Job A
•
•
$33,000 per year
$0 if you become disabled
Job B
•
•
$32,000 per year
90% of your net income up to age 65 if you become
disabled
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How much does it cost?
Classification
120 days
Up to age 65
2A
•
$1,850/month
PLUS Future insurability option $1,000
Age
25
30
35
40
45
50
55
Female
$67
$80
$95
$125
$171
$213
$233
Male
$53
$63
$78
$106
$151
$196
$225
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Next steps
Age
Monthly benefit
18 to 45 years
46 to 55 years
$0 to $2,000
1
1
$2,001 to $3,999
1
2
1. Medical questionnaire
2. Medical questionnaire, nurse visit, urine test
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Thank you!