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Disability Insurance Income Worksheet

Your Most Valuable Asset Is Income


(You may wish to print this and work with it offline.)

If you are like most people, everything you have or hope to have for yourself and your family requires that you continue to earn an income. Income is the foundation that supports your expenses, your lifestyle and your future plans.

If income is interrupted because of an accident or sickness, it may be difficult or impossible to provide basic family needs. Short range commitments and long-term plans may have to be delayed or even cancelled...And additional expenses are incurred because you have become an income consumer instead of an income producer.

Unfortunately the chance of a disabling accident or sickness interrupting your ability to continue earning an income is a distinct possibility.

Consider the chance of disability. Out of 1,000 people, the number who may be disabled for at least 90 days before age 65 is:


At Age
25
30
35
40
45
50
55
Number Disabled
403
385
365
340
305
262
205
Probability of Disability
2 out of 5
3 out of 8
3 out of 8
1 out of 3
3 out of 10
1 out of 4
1 out of 5

*Source:1985 Commissioner's Individual Disability Table A.


In Addition, look at the average length of disability for those who are disabled for 90 days or longer.


At Age
25
30
35
40
45
50
55
Length
2.4 years
3.0 years
3.5 years
3.9 years
4.3 years
4.6 years
5.0 years

*Source:1985 Commissioner's Individual Disability Table A.

Your Insurance Planning


Who Would Think About Being Without Homeowner's Or Car Insurance?

How much is your home worth?
$___________________________

Amount you pay to protect your home
$___________________________

How much is(are) your car(s) worth?
$___________________________

Amount you pay to protect your car(s)
$___________________________

How much is your earning ability worth?
$___________________________

Amount you pay to protect your income
$___________________________

Statistically Speaking, Is Your Insurance Planning Backward?


1 home in 133 will catch fire.2
1 in 90 drivers will be injured in an auto accident. 3
1 person in 8 will become disabled.1

As you can see, you spend a lot of money each year protecting the assets you worked so hard to obtain. But have you been overlooking protection for the asset that allows you to possess all of the rest? Your income!
1. 1985 Commissioner's Individual Disability Table A.
2. National Fire Protection Association's Fire Journal September 1986.
3. 1985 Addition of the National Safety Council's "Accident Facts".
4. Social Security Administration - Office of Operational Policy and Procedures. Office of Disability Program (4/82).
Let's Look At What You Could Lose...


There Is A Fortune In Your Future


Based on a person's current monthly income these are the possible earnings to age 65:

AGE
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
$2,000
960,000
936,000
912,000
888,000
864,000
840,000
816,000
792,000
768,000
744,000
720,000
696,000
672,000
648,000
624,000
600,000
576,000
552,000
528,000
504,000
480,000
456,000
432,000
408,000
384,000
360,000
336,000
312,000
288,000
264,000
240,000
$4,000
1,920,000
1,872,000
1,824,000
1,776,000
1,728,000
1,680,000
1,632,000
1,584,000
1,536,000
1,488,000
1,440,000
1,392,000
1,344,000
1,296,000
1,248,000
1,200,000
1,152,000
1,104,000
1,056,000
1,008,000
960,000
912,000
864,000
816,000
768,000
720,000
672,000
624,000
576,000
528,000
480,000
$6,000
2,880,000
2,808,000
2,736,000
2,664,000
2,592,000
2,520,000
2,448,000
2,376,000
2,304,000
2,232,000
2,160,000
2,088,000
2,016,000
1,944,000
1,872,000
1,800,000
1,728,000
1,656,000
1,584,000
1,512,000
1,440,000
1,368,000
1,296,000
1,224,000
1,152,000
1,080,000
1,008,000
936,000
864,000
792,000
720,000
$8,000
3,840,000
3,744,000
3,648,000
3,552,000
3,456,000
3,360,000
3,264,000
3,168,000
3,072,000
2,976,000
2,880,000
2,784,000
2,688,000
2,592,000
2,496,000
2,400,000
2,304,000
2,208,000
2,112,000
2,016,000
1,920,000
1,824,000
1,728,000
1,632,000
1,536,000
1,440,000
1,344,000
1,248,000
1,152,000
1,056,000
960,000
$10,000
4,800,000
4,680,000
4,560,000
4,440,000
4,320,000
4,200,000
4,080,000
3,960,000
3,840,000
3,720,000
3,600,000
3,480,000
3,360,000
3,240,000
3,120,000
3,000,000
2,880,000
2,760,000
2,640,000
2,520,000
2,400,000
2,280,000
2,160,000
2,040,000
1,920,000
1,800,000
1,680,000
1,560,000
1,440,000
1,320,000
1,200,000
Let's See What You Need...


Monthly Income Required


Let's look at your obligations which will continue even if you are disabled and are unable to work:

a) Mortgage/Rent
$___________________________

b) Utilities
$___________________________

c) Auto Payment
$___________________________

d) Auto and Homeowner's Insurance
$___________________________

e) Life and Medical Insurance
$___________________________

f) Groceries
$___________________________

g) Medical/Dental Expenses
$___________________________

h) Other Fixed Expenses such as credit card
payments, school loans, etc.
$___________________________

i) Savings
$___________________________

Total
$___________________________


If you become disabled, how long can you maintain your current lifestyle when your regular expenses increase and your earnings decrease or stop?

The next 2 months $________________ (Monthly Total x 2)

The next 3 months
$________________ (Monthly Total x 3)

The next 6 months
$________________ (Monthly Total x 6)

The next 12 months
$________________ (Monthly Total x 12)
Available Source Of Income Available To You


Savings

Is this what you started saving for? You save $_________ each year. A disability lasting ______ months would destroy ______ years of savings!

Assets Such as Home, Car, Furniture
Is there a ready market? Could you dispose of them at a fair price? Will the income produced from the sale be sufficient for your needs?

Loans
Would you loan money to someone not working and without an income?

Relatives

How long can relatives help you when they have their own expenses?

Government Programs
Would you qualify for Social Security disability benefits? 69% of all disability claims are initially rejected by Social Security. 4 Even if you did qualify, would those benefits be enough?

A New York Life agent— professionally trained and experienced— can help you analyze your needs and recommend appropriate solutions —at no charge to you.

*Products available through one or more carriers not affiliated with New York Life; dependent on carrier authorization and product availability in your state or locality.

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Disability Insurance Income Worksheet

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