Wednesday, February 10, 2016

Do you know the facts?

10 Reasons Not to Buy Disability Income Insurance

You may have your reasons for not buying individual disability income insurance (DI).  But do you know the facts?

10.  Social Security will take care of me.
          Fact: For those who do qualify, the current average monthly benefit is only $1,191. (1)

9.    It won't happen to me-- I expect to stay healthy.
          Fact: One in four of today's 20-year-olds will become disabled before reaching age 67. (2)

8.   It costs too much.
          Fact: The average annual cost is typically only 1 to 3 percent of what you earn.

7.   My Financial needs change so fast.  What policy could keep up?
          Fact: A DI policy from Principal Life Insurance Company is flexible.  You can change it as                   needed.

6.    I want a policy that keeps pace with my income-- without medical underwriting.
          Fact: Principal Life offers riders that allow you to increase your coverage without providing                   evidence of medical insurability.

5.   I have coverage through my employer.
          Fact: Group disability insurance typically covers 60 percent of gross income, and benefits
                   are usually taxable.  Can you afford more than a 40 percent pay cut?

4.   I would have to be totally disabled to receive benefits.
          Fact: There are ways to protect your income in the event of a partial disability.

3.   My family and friends will help me.
          Fact: Are your loved ones in a position to support you?  Do you want them to?

2.   I can always buy coverage later.
          Fact: People usually don't get healthier as they grow older, and coverage will cost more.

1.   I can rely on my savings.
          Fact: Even if you save 10 percent of your salary, one year of disability could easily wipe
                   out many years of savings.

Please contact us today to discuss the importance of disability income insurance, and how we can help create a customized plan to fit your needs and budget.

(1) Social Security Administration, January 2013.
(2) Social Security Administration, Fact Sheet February 2013.


Principal Financial Group
WE'LL GIVE YOU AN EDGE®
Principal Life Insurance Company, Des Moines, Iowa 50392
www.principal.com
Disability income insurance has limitations and exclusions.
For costs and complete details of coverage, contact your
Principal Life financial representative.

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