Disability Income Replacement Insurance

• Low Cost Group LTD Income Plans for Business
• Successful Financial Strategy
• How Solid Is Your Financial Foundation
• Types of Disability Contracts
• Complete Guide to Business & Professional Long Term Disability

While most Americans insure their lives and material assets, like their homes, cars, etc, many overlook the need to project their most valuable asset.

THE ABILITY TO EARN AN INCOME.

Fewer than 20% of all working people have a personally owned disability income policy insuring their incomes against the threat of an unexpected accident or illness. Yet, insurance claims studies indicate that the odds of becoming disabled for 90 days or longer are much greater than dying during one's work years.

AT AGE 32 . . . . . 3 1/2 TIMES GREATER
AT AGE 42 . . . . . 3 TIMES GREATER
AT AGE 52…..2 ½ TIMES GREATER

Are you protecting the Right Assets?

Life is full of risks. You might be surprised to learn what poses the greatest threat to most
people during the course of one year.

• 1 in 222 housing units catch fire*
• 1 in 160 people receive injuries motor vehicle accidents*
• 1 in 117 die*
• 1 in 10 people, age 25-64, suffer a disability*

Low Cost Group LTD Income Plans for Business

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Often overlooked by employers, is this low cost benefit. What does it cost when an employee is not at work because of a disabilty due to accident or illness? A worker may claim Workers Compensation or State Disability benefits costing you the employer higher premiums for those benefits. When an employee has a an income they often recover quicker and return to work sooner. One they worry less about how to pay there bills and policies contain a return to work benefit which can get the employee back to work sooner. You can contact us for a no obligation quote and check it out yourself, it is a low cost protection for your business. Complete the attached census and email to receive your qutoes.

Potential Earnings to Age 65 (5 percent annual salary increase)

Annual Income
AGE	$50,000	$100,000	$150,000
30	4,516,000	9,032,000	13,548,000
35	3,322,000	6,644,000	9,966,000
40	2,386,000	4,773,000	7,159,000
45	1,653,000	3,307,000	4,960,000

You probably insure your home, your car and other personal assets. Don’t forget to protect your most valuable asset…. your ability to earn an income.

Successful Financial Strategy

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Estate	Pass on, Personal and Business Assets
Accumulation	Retirement Plans, Personal Investments, Savings, Business Ownership
Risk Management	Auto/Home Insurance, Life Insurance, Health Insurance, Property Insurance
Foundation	Income, Disability Income

How Solid Is Your Financial Foundation

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This table 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. When you fail to protect your income, your dreams for a comfortable retirement, college for the kids, or passing on assets may not become a reality.

What to look for in a disability insurance policy?

1. How is disability defined? Are education, experience and past earnings taken into account in determining what the insured can be reasonably be expected to do?

NOTE: Many contracts today provide an "own occupation" definition providing for the payment of benefits if the insured is unable to work in his or her specialty: e.g., orthopedic surgeon.

2. What about partial or residual disability? Are benefits provided when medical impairment allows the insured to perform only a portion of his or her duties? Is this benefit payable only when preceded by a period of total disability? The wording in the contract is very important.

3. Is a cost of living adjustment available to increase benefit pay outs after a disability occurs and protect the insured against inflation?

4. Is the policy both non-cancelable and guaranteed renewable by the issuing company?

5. Is the waiting or elimination period proper for the insured's circumstances? Commonly available periods include 30-day, 60-day, 90-day, 6 months and 1year. Naturally, the longer elimination period one selects, the lower his or her premium payments will be. However, a person's needs, cash reserves and income sources should be the deciding factors in selecting a proper elimination/waiting period.

6. What benefit period should be selected? A long-term medical disability can be financially devastating. Therefore, one should elect a long-term benefit period where possible. Most companies offer coverage to age 65; some offer lifetime benefit periods.

Types of Disability Contracts

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Beyond personal and group term disability policies, several specialized disability contracts are available to the business person:

1. Business Overhead Expense -Covers expenses such as staff salaries, rent, telephone, utilities, malpractice insurance and other expenses necessary to keep one's office open

2. Key Person Disability - Reimburses the business for the loss of a key Employee and allows funding of temporary replacement or training of a successor.

3. Disability Buyout - Provides income to fund a Buy-Sell Agreement triggered by the disability of a shareholder executive.

Alone a Group LTD program may not sufficiently cover your income.

Reasons to Supplement Group Long Term Disability

• Benefit level may be too low (i.e. 60% of base salary)
• Benefits are typically taxable, reducing the actual percentage of income received in benefits
• Caps on monthly benefit amounts can reduce highly compensated individuals’ protection (i.e. 60% to 5/6,000 per month cap)
• Benefits typically are reduced by Social Security
• Bonuses, overtime pay, pension contributions or other forms of compensation may not be covered
• Rates may not be guaranteed

Portability is not available or available only on a restricted basis

An individual disability income policy allows you to customize your coverage to fit your needs. Individual disability income insurance will help you protect your income in case of a qualifying disabling injury or illness.

Contact Information

25200 Crenshaw Blvd, Ste. 202
P.O. Box 4020
Torrance, CA 90510-4020

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Insurance Licenses

California 0294220 / Nevada 53484 / Arizona 124074/ Texas 1220240 / Georgia 556644 / Wisconsin 2426763