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Insurance Architects for Life Planning
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Facts about Disability
You insure your car, your home, and your personal property.
But have you protected your most valuable asset – your ability to earn income?
If your family’s lifestyle depends on your earned income, what would happen in the event you were too sick or hurt to work?
What would happen to your savings?
Your retirement plans?
Your children’s educational fund?
According to a recent National Underwriter study, in the last 20 years, the number of deaths triggered by cancer, heart attack and stroke has significantly decreased - while the number of long-term disabilities triggered by those ailments has dramatically increased.
Statistics reveal that physical maladies that used to end in death now trigger long-term disabilities.
The financial impact of a disability is measured in terms of “lost opportunities.”
The economic cost of disability is the amount of wages that you forfeit when you lose your ability to work.
| Age at onset of Disability |
Annual salary at onset of Disability |
| $50,000 |
$75,000 |
$100,000 |
$150,000 |
$200,000 |
$300,000 |
| 25 |
3,770,063 |
5,655,094 |
7,540,126 |
11,310,189 |
15,080,252 |
22,620,378 |
| 35 |
2,378,771 |
3,568,156 |
4,757,542 |
7,136,312 |
9,515,083 |
14,272,625 |
| 45 |
1,343,519 |
2,015,278 |
2,687,037 |
4,030,556 |
5,374,075 |
8,061,112 |
| 55 |
573,194 |
859,791 |
1,146,388 |
1,719,582 |
2,292,776 |
3,439,164 |
The table above illustrates the “cost of a disability” for a 35 year-old worker who was earning $150,000 per year (+3% annual cost-of-living salary adjustments) when the onset of a long-term disability prevented his ability to continue working.
Forfeited wages and 3% C.O.L.A. increases amount to $7,136,312 from age 35 through age 65!
Be sure to request our Preliminary Insurance Questionnaire to see if disability risk management fits into your financial plan. |
