1. Disability insurance – Could you afford not to have it?
Through this presentation and with your help, the client will realize the importance of disability insurance. He should also become familiar with different concepts related to disability insurance.
Disability insurance – Could you afford not to have it?

2. 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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3. Whether it's…
Listing all current expenses that your client must pay on a daily basis, he will realize that if he cannot his earn income, there will be nobody to pay his expenses. Ask following questions: Could you retire now, and stop working? If your spouse has no job, could you maintain the same lifestyle? If your spouse is sick, could you maintain the same lifestyle while paying higher medical expenses that result from disability?

4. mortgage or rent

5. groceries

6. car payments

7. daycare

8. tuition fees

9. or any other expenses…

10. We all have bills to pay… every month…

11. And if suddenly,
you were unable to work and earn an income What would you do?

12. 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
Everyone is a millionaire, except that people are not aware. From this perspective, your lifetime earnings are probably greater than the combined value of your other assets. Therefore, the most valuable asset from a financial point of view is your earning power!
It certainly enables you to maintain or even increase the life style you and your family deserve.
A prolonged loss of income causes major financial loss if the client has no disability insurance in force.
3% salary increase.
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13. 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
*Inheritance is excluded.
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14. From the other perspective…
When you buy a car:
You call immediately car insurer to protect it!
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15. From the other perspective…
When you buy a house:
You call immediately home insurer to protect it!
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16. From the other perspective…
When you buy stainless steel appliances:
You will probably insure them if something goes wrong.
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17. Basis of your financial security
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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18. Reality in case of illness or accident
Revenues
Expenses
Disability
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19. 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
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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20. 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
Source: 1985 Commissioners Individual Disability Table A
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21. 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
Explain in simple terms how a disability insurance works.
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22. Main components Monthly benefit Waiting period Benefit period
Explain in simple terms how a disability insurance works.
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23. Options Regular occupation period Residual or partial disability
2-year
5-year
Up to 65 years
Residual or partial disability
Cost of living
Future insurability option
Explain those four riders. Why do we need them? Example regular occupation: if my client is mechanic and can no longer perform his job, but can do something else related to his experience and education (garage receptionist, coordinator, etc..), the insurer will stop paying disability benefits after 24 months unless the client has regular occupation rider.
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24. SOLO Disability Income unique features1
1st day in case of hospitalization or day surgery (For waiting periods of 90 days and less)
Example: the person has a heart attack and is hospitalized. After two months, he returns to work. If the waiting period is 90 days, the client will not benefit from his disability insurance, unless he has first day in case of hospitalization feature (already included in Solo). No
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25. SOLO Disability Income unique features2
1st $1,200 guaranteed
No integration and no coordination apply for the first 36 months
You have to master the concepts of integration and coordination in order to explain to the client. No
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26. SOLO Disability Income unique features3
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 No
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27. Covered critical illnesses
Cancer
Heart attack
Stroke
Coronary Artery Bypass Surgery
Multiple sclerosis
Parkinson
Paralysis
Kidney failure …
Total: 25 illnesses!
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28. SOLO Disability Income unique features4
An extra 5% paid on top of the benefit starting on the 13th month of your disability income payment (in a DFS savings account)
If $2,000 benefit, it means an extra of $100! No
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29. SOLO Disability Income unique features5
5 x the monthly benefit in case of death
(Paid if the death occurs while receiving disability benefits) No
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30. 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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31. Which job would you choose?
Job A
$33,000 per year
$0 if you become disabled
Job B: Solo and other income replacement insurance products generally offer benefit that corresponds to 90% of net income.
Job B
$32,000 per year
90% of your net income up to age 65 if you become disabled
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32. How much does it cost? Classification 120 days Up to age 65 2A
$1,850/month
PLUS Future insurability option $1,000
Examples of premiums according to age.
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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33. Next steps Medical questionnaire
Monthly benefit
Age
18 to 45 years
46 to 55 years
$0 to $2,000 1
$2,001 to $3,999 2
Medical requirements depending on the amount subscribed.
Medical questionnaire
Medical questionnaire, nurse visit, urine test
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34. Thank you!