income protection women professionals
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Attention all professional women... There may be a key component to your financial well being that is missing... Take a look at this presention to see if you are at risk.TRANSCRIPT
IncomeProtection:
A Key Consideration for Professional Women
Material discussed is meant for general illustration and/or
informational purposes only and it is not to be construed as tax, legal, or
investment advice. Although the information has been gathered from
sources believed reliable, please note that individual situations can vary, therefore the information should be relied upon when coordinated with
individual professional advice.
The Guardian Life Insurance Company of America
7 Hanover SquareNew York, NY
8533-6-06
Disability income products underwritten and issued by Berkshire Life Insurance Company of America, Pittsfield, MA, a wholly owned stock subsidiary of The Guardian Life Insurance Company of America,
New York, NY or the Guardian Life Insurance Company of America, New York, NY.
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The Independent Woman
Growing economic power
Own nearly half of all privately-owned firms*
Majority of college graduates
Majority of professional employees
* U.S. Department of Labor, Women’s Bureau, Statistics and Data Quick Stats 2004
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What is Your Future Income Worth?
Potential earnings to age 65 with 3% annual increases
Age $50,000 $75,000 $100,000 $150,000 $200,000 $250,000
30 $3,023,104 $4,534,656 $6,046,208 $9,069,312 $12,092,416 $15,115,520
35 $2,378,771 $3,568,156 $4,757,541 $7,136,312 $9,515,083 $11,893,853
40 $1,822,963 $2,734,444 $3,645,926 $5,468,889 $7,291,852 $9,114,816
45 $1,343,519 $2,015,278 $2,687,037 $4,030,556 $5,374,074 $6,717,593
50 $929,946 $1,394,918 $1,859,891 $2,789,837 $3,719,782 $4,649,728
55 $573,194 $859,790 $1,146,387 $1,719,581 $2,292,775 $2,865,969
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Healthy & Working
LivingExpenses
Earned Income
Surplus BuildingWealth
YourGoals
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Unhealthy & Not Working
Earned Income Stops
Living Expenses Continue
Deficit
DrainingWealth
Goals
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Know the Risks
Women are more likely than men to experience disability & corresponding loss of income.
Women experience more non-fatal, chronic illness than men, while men’s illnesses tend to be more life threatening.
Jans, L., & Stoddard, S. (1999). Chartbook on Women and Disability in the United States. An InfoUse Report. Washington, D.C.: U.S. National Institute on Disability and Rehabilitation Research.
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What Causes Disability?
Source: U.S. Department of Education, National Institute on Disability and Rehabilitation Research, 1996
86.6% Illness
13.4% Injuries
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What Causes Disability in Women?
Condition Percent
Arthritis 24.8
Back/Neck 21.0
Heart 15.1
Hypertension 12.1
Emotional 11.6
Bone/Joint Injury 10.9
Diabetes 10.4
Lung/Breathing 10.3
Vision 8.3Characteristics of the Civilian Noninstitutionalized Population by Age, Disability Status, and Type of Disability: 2000, U.S. Census Bureau, Census 2000, Summary File 3, P042.
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What Are Your Options?
Employer benefits?
Social Security?
Savings or investments?
Borrowing?
Spouse?
Family?
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Group Disability Insurance Plans
Typical Group Plan
Basic protection: 60% of salary, subject to a cap
May not cover bonuses or commissions
Benefit is taxable if your employer pays for it
Benefit is offset by government programs
Coverage can be modified or cancelled
You don’t own it
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The Missing Piece… Individual Disability Income Insurance
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Individual Disability Income Insurance
The Basics*
The cost is guaranteed
Benefits are not offset by other income sources
Benefits are tax-free
Policy benefits cannot be modified
Coverage cannot be cancelled
Can adjust coverage to meet changing needs
You own the policy
*Based on a typical non-cancellable and guaranteed renewable individual disability policy.
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Questions to Ask
When will the insurance company regard me as totally disabled?
How much do I get paid?
When do benefits start?
How long will benefits last?
What if I’m only partially disabled?
Can I get inflation protection?
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If You Own a Business
Insurance protection for…
Your income
Your employees
Your business
Your partner
Your retirement
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Next Steps
Thank You
IncomeProtection:
A Key Consideration for Professional Women