Protect Your Income: Protect What Matters Most Presented by: Your Name Be Realistic Be Proactive Be Confident Three Goals Be Realistic I never thought it could happen to me. MetLife Study of the Emotional and Financial Impact of Disability, March 2010 Illnesses like cancer, heart attack and diabetes cause the majority of long-term disabilities CDA Long-Term Disability Claims Review What is the #1 cause of new and existing disability claims? D. Work-related accidents A. Falling off a ladder B. Musculoskeletal disorders C. Spine and nervous disorders 2013 CDA Long-Term Disability Claims Review What is the #1 cause of new and existing disability claims? B. Musculoskeletal disorders 2013 CDA Long-Term Disability Claims Review Muscle, back and joint disorders Spine and nervous system-related disorders Cardiovascular and circulatory diseases Cancer and tumors Mental illness and behavioral disorders Respiratory system disorders Infectious and parasitic diseases Digestive system disorders Nutritional, metabolic, regulatory and immunity disorders Genital and waste removal disorders Complications of pregnancy Skin conditions and disorders Blood-related disorders Common Terms and Examples of Disability Claims Diagnoses, Council for Disability Awareness The average disability lasts D. 10 years A. 6 months B. 1 year C. 2.5 years 2012 Gen Re Disability Fact Book The average disability lasts C. 2.5 years 2012 Gen Re Disability Fact Book MetLife Study of the Emotional and Financial Impact of Disability, March 2010 In a matter of seconds, literally seconds, the whole world changed. My life changed entirely. The Future Current Salary $50k$100k$150k$200k Age 30 $1.75m$3.5m$5.25m$7m 35 $1.5m$3m$4.5m$6m 40 $1.25m$2.5m$3.75m$5m 45 $1m$2m$3m$4m 50 $750k$1.5m$2.25m$3m Potential Lifetime Income Calculations are only based on income from the age noted until age 65. They do not take into account income outside this timeframe, potential salary increases, investments or taxes. Disability Costs Salary & Incentives Advancement Savings & Interest The Future MetLife Study of the Emotional and Financial Impact of Disability, March 2010 Be Proactive Make sure you have disability insurance through your job or buy it on your own. I did and it saved my life. What does disability insurance do? C. Provides a monthly benefit to help replace lost income when one is unable to work as a result of an illness or injury. B. Helps pay for medical bills only when one has a serious illness. A. Helps pay for nursing home charges. What does disability insurance do? C. Provides a monthly benefit to help replace lost income when one is unable to work as a result of an illness or injury. Life Insurance Disability Insurance In case of premature death In case of illness or injury Working Income Disabled Income Disability Insurance Working Income Disabled Income Disability Insurance Insurance Group Disability Insurance 60% Salary Working Income Disabled Income Disability Insurance Group Disability Insurance 60% Salary Taxes Working Income Disabled Income Disability Insurance Group Disability Insurance 60% Salary Taxes Incentive Pay Working Income Disabled Income Disability Insurance Group Disability Insurance 60% Salary Taxes Max Benefit Incentive Pay Working Income Disabled Income Disability Insurance 60% Salary Taxes Max Benefit Incentive Pay Ownership Group Disability Insurance Working Income Disabled Income Disability Insurance Group Disability Insurance + Personal Coverage Closer to Whole Working Income Disabled Income Disability Insurance Your Income Protection Plan How much do you need? Your Income Protection Plan How much do you need? Where can you find funds? Your Income Protection Plan How much do you need? Where can you find funds? How long will it last? Your Income Protection Plan Your Income Protection Plan Be Confident If insurance is offered be wise and take it. You never know if or when you will ever need it, but it could mean the difference between surviving through a disability financially or not! MetLife Study of the Emotional and Financial Impact of Disability, March 2010 Serena Age: 32 In a relationship Salary: $80,000 Scenario is hypothetical only and does not depict the results of any actual disability insurance policy. The provisions in an actual policy, including benefit amount and premium, depend on the individual circumstances. MetLife Income Guard SM, Female, age 32. Non-smoker, 5A occupational class, 25% tax bracket. 90-day elimination period (length of time an individual must be disabled before benefits begin to accrue). Five-year maximum benefit period. In this case, premiums are paid in monthly bank draft mode, while the annual premium assumes one payment per year. Paying premiums more than once a year (i.e., monthly or semi-annually) results in annualized premiums greater than the annual premium shown above. MetLife Income Guard is noncancelable and guaranteed renewable to age 67 or five policy years if later. MetLife Income Guard is not available in all states. 70% income $49 a month $3500 Monthly Benefit Serenas Disability Plan Policy remains Serenas Disability Plan MetLife Income Guard SM, Female, age 32. Non-smoker, 5A occupational class. 90-day elimination period (length of time an individual must be disabled before benefits begin to accrue). Five-year maximum benefit period. In this case, premiums are paid in monthly bank draft mode, while the annual premium assumes one payment per year. Paying premiums more than once a year (i.e., monthly or semi-annually) results in annualized premiums greater than the annual premium shown above. MetLife Income Guard is noncancelable and guaranteed renewable to age 67 or five policy years if later. MetLife Income Guard is also not available in all states. Disability strikes Waiting period Benefit kicks in Benefit up to 5 years Policy issued Joe Age: 35 Salary: $120,000 Married with kids Scenario is hypothetical only and does not depict the results of any actual disability insurance policy. The provisions in an actual policy, including benefit amount and premium, depend on the individual circumstances. 45% income Group plan $3375 Joes Disability Plan Assumptions: Male, age 35, $90,000 annual salary with $30,000 bonus, non-smoker, MetLife Income Guard, 5A occupational class. 180-day elimination period (length of time an individual must be disabled before benefits begin to accrue). Maximum benefit period to age % tax bracket. In both scenarios, monthly premiums are paid in monthly bank draft mode, while the annual premium assumes one payment per year. Paying premiums more than once a year (i.e., monthly or semi-annually) results in annualized premiums greater than the annual premium shown above. Age 67 maximum benefit period not available in some states. Check with your financial professional for details. 78% income Joe pays $50 a month Personal plan $2500 Group plan $3375 Joes Disability Plan Assumptions: Male, age 35, $90,000 annual salary with $30,000 bonus, non-smoker, MetLife Income Guard, 5A occupational class. 180-day elimination period (length of time an individual must be disabled before benefits begin to accrue). Maximum benefit period to age % tax bracket. In both scenarios, monthly premiums are paid in monthly bank draft mode, while the annual premium assumes one payment per year. Paying premiums more than once a year (i.e., monthly or semi-annually) results in annualized premiums greater than the annual premium shown above. Age 67 maximum benefit period not available in some states. Check with your financial professional for details. $92 a month 78% income Joe pays Joes Disability Plan- Age 50 Assumptions: Male, age 35, $90,000 annual salary with $30,000 bonus, non-smoker, MetLife Income Guard, 5A occupational class. 180-day elimination period (length of time an individual must be disabled before benefits begin to accrue). Maximum benefit period to age % tax bracket. In both scenarios, monthly premiums are paid in monthly bank draft mode, while the annual premium assumes one payment per year. Paying premiums more than once a year (i.e., monthly or semi-annually) results in annualized premiums greater than the annual premium shown above. Age 67 maximum benefit period not available in some states. Check with your financial professional for details. Personal plan $2500 Group plan $3375 What if I need it but I dont it? have What if I have it but I dont it? need Today Tomorrow When you need it most Thank You! Like most disability income insurance policies, MetLifes policies contain certain exclusions, waiting periods, reductions, limitations and terms for keeping them in force. Ask your representative about costs and complete details. All policies, riders and provisions may not be available in all states, at all issue ages and to all occupational classes. Ask your representative for complete details. Eligibility is subject to underwriting approval. For policies issued in New York: These policies provide disability income insurance only. They do NOT provide basic hospital, basic medical or major medical insurance as defined by the New York State Department of Financial Services. The expected benefit ratio for these policies is at least 50%. This ratio is the portion of future premiums that MetLife expects to return as benefits when averaged over all people with the applicable policy. The information contained in this document is not intended to (and cannot) be used by anyone to avoid IRS penalties. This document supports the promotion and marketing of insurance or other financial products and services. Clients should seek advice based on their particular circumstances from an independent tax advisor since any discussion of taxes is for general informational purposes only and does not purport to be complete or cover every situation. MetLife, its agents, and representatives may not give legal, tax or accounting advice and this document should not be construed as such. Clients should confer with their qualified legal, tax and accounting advisors as appropriate. Disability income insurance is issued by Metropolitan Life Insurance Company on IDIP12-01 IDIP12-08, IDI2000-P/NC, IDI2000-P/NC-ML, IDI2000-P/GR, AH 5-88, AH 7-96-CA and AH 8-96-CA. May 2014 Metropolitan Life Insurance Company 200 Park Avenue New York, NY CLDI24058 L [0615][All States][DC,PR] 2014 METLIFE, INC. PEANUTS 2014 Peanuts Worldwide Note to presenter: If you know you will be presenting to an older audience, consider swapping the following slides with the Serena scenario (slides and 47). Before presenting, make sure you delete the slides you do not use, including this one. Age: 42 Status: Single Salary: $100,000 Elaine 72% income $115 a month $4000 Monthly Benefit Elaines Disability Plan Assumptions: Female, age 42, $100,000 salary per year, non-smoker, MetLife Income Guard SM, 6S occupational class, 90-day elimination period, 10-year max benefit period. 25% tax bracket. In both scenarios, monthly premiums are paid in monthly bank draft mode, while the annual premium assumes one payment per year. Paying premiums more than once a year (i.e., monthly or semi-annually) results in annualized premiums greater than the annual premium shown above. Premiums are scheduled to be level through age 67 but could be increased on a class basis. Check with your financial professional for details. Elaines Disability Plan Assumptions: Female, age 42, $100,000 salary per year, non-smoker, MetLife Income Guard SM, 6S occupational class, 90-day elimination period, 10-year max benefit period. 25% tax bracket. In both scenarios, monthly premiums are paid in monthly bank draft mode, while the annual premium assumes one payment per year. Paying premiums more than once a year (i.e., monthly or semi-annually) results in annualized premiums greater than the annual premium shown above. Premiums are scheduled to be level through age 67 but could be increased on a class basis. Check with your financial professional for details. Policy issued Policy remains Disability strikes Waiting period Benefit kicks in Benefit up to 5 years Policy issued