disability insurance – could you afford not to have it?

Disability insurance – Could you afford not to have it?

DESJARDINS FINANCIAL SECURITY | 2

Agenda

• Why do you need disability insurance?

• How does it work?

• What are the options?

• SOLO Disability Income features

• Examples

• How can you buy it?

Whether it's…

mortgage or rent

groceries

car payments

daycare

tuition fees

or any other expenses…

We all have bills to pay… every month…

And if suddenly,

you were unable to work and earn an income

What would you do?


What do you think your most valuable asset is?Is it your property… your vehicle… your investments …something else?

Age $24,000 $36,000 $60,000 $120,00025 $1.809,630 $2.714,445 $7.247,986 $14.495,973

30 $1.451,090 $2.176,635 $5.419,218 $10.838,437

35 $1.141,810 $1.712,715 $3.986,331 $7.972,662

40 $875,022 $1.312,534 $2.863,626 $5.727,252

45 $644,889 $967,333 $1.983,957 $3.967,914

50 $446,374 $669,561 $1.294,714 $2.589,428

55 $275,133 $412,700 $754,673 $1.509,347


Everybody is millionaire!

Your income is a most valuable asset that you will acquire during your lifetime.

That is why :

Disability Insurance

=

Basis of your financial security

Everybody is millionaire!


From the other perspective…

When you buy a car:

You call immediately car insurer to protect it!



When you buy a house:

You call immediately home insurer to protect it!



When you buy stainless steel appliances:

You will probably insure them if something goes wrong.



But when you earn your salary and have no disability protection to protect it, do you buy disability insurance right away?

Disability Insurance

=

Basis of your financial security

If you have no income, will you have enough money to pay your house, your car, your appliances, your other insurances if disabled?



Revenues

Expenses

Disability

Reality in case of illness or accident


If you save for:

5 % of your income

10 % of your income

15 % of your income

2 years 1 ½ months 3 months 4 ½ months

5 years 3 ½ months 7 ½ months 11 months

10 years 7 ½ months 1 year et 3 months 1 year et 10 months

A long-term disability (90 days & +) can be bad for your financial security!

How long could you live off your savings?


Age Probability Average duration

25 40% 2 years and 2 months


35 37% 3 years and 1 month





Probability of becoming disabled before age 65 and average duration of disability for 90 days or more


How does disability insurance work?

It pays you a monthly benefit:

• to replace your income

• when you are not able to work

• due to an illness or accident


Main components

1. Monthly benefit

2. Waiting period

3. Benefit period


Options

• Regular occupation period

• 2-year

• 5-year

• Up to 65 years

• Residual or partial disability

• Cost of living

• Future insurability option


SOLO Disability Income unique features

1• 1st day in case of hospitalization

or day surgery

(For waiting periods of 90 days and less)No



2 • 1st $1,200 guaranteed• No integration and no

coordination apply for the first 36 months

No



35 x your monthly benefit if you are diagnosed with 1 of the 25critical illnesses• Disabled or not• Paid on top of your benefit

No


Covered critical illnesses

• Cancer• Heart attack• Stroke• Coronary Artery Bypass Surgery• Multiple sclerosis• Parkinson• Paralysis• Kidney failure• …

Total: 25 illnesses!



4• An extra 5% paid on top of the

benefit starting on the 13th month of your disability income payment (in a DFS savings account)

If $2,000 benefit, it means an extra of $100!

No



5 • 5 x the monthly benefit in case of death(Paid if the death occurs while receiving disability benefits)

No



• Regular occupation period

• Residual or partial disability

• Cost of living

• Future insurability option

• Return of premium: up to 50%

Furthermore,

you could add

those options:


Which job would you choose?

Job A

• $33,000 per year• $0 if you become disabled

Job B• $32,000 per year• 90% of your net income up to age 65 if you become

disabled


How much does it cost?

Classification 120 daysUp to age 65

2A $1,850/month

Age 25 30 35 40 45 50 55

Female $67 $80 $95 $125 $171 $213 $233

Male $53 $63 $78 $106 $151 $196 $225

• PLUS Future insurability option $1,000


Next steps

Monthly benefitAge

18 to 45 years 46 to 55 years

$0 to $2,000 1 1

$2,001 to $3,999 1 2

1. Medical questionnaire

2. Medical questionnaire, nurse visit, urine test

Thank you!

disability insurance – could you afford not to have it?

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