Disability Income Replacement Insurance for Executives
Accidents or illnesses can occur at any time. Do you and your key employees have sufficient income replacement insurance to protect your current lifestyle?
While employers may think they have got it covered, here is what they may not realize: their group long-term disability plan is not sufficient when it comes to protecting one of their company’s biggest assets – their executives. The odds of becoming disabled at least once prior to age 65, for a period of 90 days or longer, is approximately 1 in 3.
Most individuals cannot afford to continue their lifestyle without having an income for an extended period of time. For example (as shown in the table below), a 30-year-old individual that earns $150,000 a year, their total income for the period up until age 65, without factoring inflationary adjustments, would be $5,250,000.
| Annual Income | AGE 30 Total earnings until age 65 | AGE 40 Total earnings until age 65 | AGE 50 Total earnings until age 65 |
|---|---|---|---|
| $75,000 | $2,625,000 | $1,875,000 | $1,125,000 |
| $100,000 | $3,500,000 | $2,500,000 | $1,500,000 |
| $125,000 | $4,375,000 | $3,125,000 | $1,875,000 |
| $150,000 | $5,250,000 | $3,750,000 | $2,250,000 |
| $200,000 | $7,000,000 | $5,000,000 | $3,000,000 |
Your lifestyle depends on the income you generate. Should an illness or injury prevent you or a key employee from working for an extended period of time, the loss of income will greatly impact your lifestyle and ability to provide for yourself or loved ones.
Disability Income Replacement Insurance is a crucial protection. It provides a monthly income while you are unable to work and can be used towards maintaining your family’s lifestyle, covering everyday expenses, paying medical bills and more, so you can focus on your recovery without the burden of financial worries.
To learn more about Disability Income Replacement Insurance, we invite you to reach out to us.
