Ogden Financial Planners

INCOME DISABILITY INSURANCE

Disability Needs Analysis

The Objective of the Disability Needs Analysis Is to Help You Answer Two Basic Questions:

How much money will you and your family need when you are disabled?
and
Where will that money come from?

The Fact Is - Your Health Is Your Wealth

Based on a current monthly household income of $7,000, these are your potential earnings to age 65, assuming a 5% increase each year.

Age	Potential Earnings
30	7,586,906
35	5,580,863
40	4,009,076
45	2,777,540
50	1,812,599

Your Most Valuable Asset Lost When You Can Least Afford It.

Other Insured Assets

Let's Take a Look at Your Other Insured Assets

If you own a home, what is its current value?
If you rent a home put in your annual rent.
and
Where will that money come from?

(Note: for this calculation, refrain from using commas and round to the nearest dollar.)

Your home is worth?

Your
homeowner's
insurance
premium

Your car(s) is/are worth?

Your
automobile
insurance
premium

Your assets are worth:

Your
insurance
premiums
are

Your earning power is worth?

The amount
you are now
spending to
protect your
income

Why risk all of this when so much depends on it?

Work Sheet

How Much Does It Cost You and Your Family Each Month, Just for the Bare Necessities?
(Please refrain from entering commas and round to the nearest dollar.)

Food
House Payments
Auto Expenses
Dental/Medical Bills
Utilities
Insurance/Savings
Clothing
Education
Other
Total

Monthly Coverage

Present Earned Income
Monthly Benefit Available (refer to chart)

Present Monthly Coverage
Individual
Group
Association
Total

Shortage

(Monthly benefit minus coverage total.)

Disability Needs: Sources

Where Will the Money to Live on Come from if You're Disabled?

Let's consider the sources . . .

SOURCES OF MONEY THE PROBLEM

Savings If you saved 5% of your income each - six months of total disability could wipe out ten years of savings.

Borrow You might have difficulty securing a loan when you're disabled. And where will the money come from to repay the loan?

Spouse works Can one person be spouse, parent, private nurse and employee all at the same time?

Liquidate assets Can you get a fair market price when you are forced to liquidate?

Disability income plan If you qualify.

There's Only One Logical Answer:
An Adequate amount of Disability Income Protection, if You Can Qualify.

Wouldn't You Agree?

The risk of disability is great

Consider the chances of at least one disability lasting more than 90 days before age 65.
Out of 1,000 people, the number who will be disabled before 65:

AT AGE			AT AGE
25 30 35 40	578 541 501 453	3 out of 5 5 out of 9 1 out of 2 4 our of 9	45 50 55 60	396 329 246 142	2 out of 5 1 out of 3 1 out of 4 1 out of 7
Source: 1985 CIDA Morbidity and 1980 CSO Mortality Tables.

In addition, if your disability does last 90 days, the average length of a disability will be:

AT AGE		AT AGE
25 30 35 40	2.1 years 2.5 years 2.8 years 3.1 years	45 50 55 60	3.2 years 3.1 years 2.6 years 1.6 years
Source: 1985 Commissioner's Individual Disability Table A. Developed from actual claims experience on insured lives.

And . . . the earnings lost as a result of disability can be staggering . . .

Wouldn't You Agree?


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