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Disability Income Insurance

Disability Income Insurance

How Much Do You Need?

If you were to become disabled due to an illness or injury, how would your cash
flow be affected? Would you have enough income to meet monthly expenses? This calculator
can help you estimate your need for income protection in the event you become disabled.

 

Based on the information you provided, the amount of income shortfall you might experience during a long-term disability is shown below.

Skip Table Information

Your Results
Description Amount
Your current monthly expenses: $0
Additional monthly expenses if you were disabled: $0
Your estimated total monthly expenses: $0
Your estimated monthly income during an extended disability: $0
Monthly funds available from other/retirement assets: $0
Your estimated additional monthly income needed: $0
The percentage of estimated total monthly expenses that you would need to replace
in the event of a long-term disability: 		0%

Long-term disability (LTD) benefits are taxable when the employer pays the premiums, reducing an already limited benefit. In addition, employer provided LTD, even if employee paid, may not be portable. Disability income insurance coverage is generally limited to 60 percent to 70 percent of salary and typically has a monthly cap. Income may not be fully covered due to the cap. Bonuses are not counted as covered income by most LTD policies.

Income may be available from the following sources, but only for a limited time:

  • Accumulated sick-pay benefits.
  • Salary continuation benefits.
  • Short-term disability benefits (typically one year or less, limited amount).

This chart shows the percentage of your monthly expenses that you may need to replace
in the event of a long-term disability. A disability income insurance policy is
one tool you may want to consider to help you address this potential shortfall.
Social Security pays disability benefits, but you must be considered totally disabled,
and it can be difficult to qualify for benefits.

Total Monthly Expenses



LTCI Cost of Waiting

LTCI Cost of Waiting

What Is the Potential Cost of Waiting to Purchase a Long-Term-Care Insurance Policy?

There is a time-honored phrase related to long-term-care insurance and it goes like
this: “Your money pays for long-term-care insurance, but your health buys it.”

As one ages, the risk of not being able to qualify for long-term-care insurance
may increase due to deteriorating health.

In addition to the risks of health problems as we age, the dollar cost of long-term-care insurance rises dramatically because the insurer has less time to accumulate sufficient reserves to cover its part of the risk.

A complete statement of coverage, including exclusions, exceptions, and limitations, is found only in the long-term-care insurance policy. It should be noted that carriers have the discretion to raise their rates and remove their products from the marketplace.

Long-term-care premiums are based on your age at the time of application. This calculator assumes that premiums are 8 percent higher each year that you delay purchase. Individual policies may vary.

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Your Results
Description Amount
Current age: 0
Annual premium for a long-term-care policy: $0
Age you anticipate buying long-term-care insurance: 0
Age you anticipate requiring long-term-care benefits: 0
In this case, your premium at the higher age would be: $0
The total cost difference now through the year when you expect to need benefits as a result of delaying the decision to acquire long-term-care coverage: $0

Based on the information you provided, this chart illustrates the estimated annual
costs of a long-term-care insurance policy now vs. waiting. Note that in many cases,
your total cost for coverage may be lower if you purchase sooner at a lower premium
than if you wait and pay a higher premium, despite the fact that you would potentially
pay premiums for fewer years.

Cost of Waiting to Purchase Long-Term-Care Insurance

This hypothetical example is only an estimate and assumes that premium levels remain
stable over time. This example does not represent any specific insurance policy
or product. Actual results will vary.



Long-Term Care Self Insurance

Long-Term Care Self-Insurance

Will You Be Able to Afford Nursing Home Care?

Medicare will pay for medically necessary skilled nursing-facility care only if admission follows a minimum three-day hospitalization and the patient’s condition is improving.

Nobody wants to think about the possibility of needing long-term care. But if, somewhere down the line, you and/or your spouse do need assistance, will you have the funds available to pay for care? How much will an extended stay in a nursing facility or care received in your own home cost? Will you be able to meet this cost and still pay your and/or your spouse’s personal living expenses? Will there be enough left over to provide an inheritance for your loved ones or your favorite charity? Does it make sense to self-insure when private long-term-care coverage may be available? This calculator will assist you in answering these questions.

The current average daily nursing home cost in a private room nationwide is $280 according to the 2019 Genworth Cost of Care Survey. But in some areas of the country, and/or for a private room at a high quality facility, the daily amount can easily exceed $300.

 

Based on your assumptions, the results show the potential cost of care for one year, three years, five years, and 10 years of care.

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Your Results
Description Amount
Your current age: 0
Age you begin to use long-term-care services: 0
Assumed inflation rate for long-term-care services: 0%
The current daily cost of a nursing/long-term care facility: $0
Based on your answers, the average daily cost when care is needed: $0
Monthly, this works out to: $0
Total estimated cost if you need one year of long-term care: $0
Total estimated cost if you need three years of long-term care: $0
Total estimated cost if you need five years of long-term care: $0
Total estimated cost if you need 10 years of long-term care:  $0

Long-term care costs can be financially devastating, especially if care is needed
for an extended time. And remember, these results estimate the potential costs for
one person. What if both you and your spouse needed care simultaneously?

Can You Afford To Self-Insure?

This table assumes that long-term-care inflation continues at the same rate entered
above.



Life Expectancy

Life Expectancy

What Is Your Life Expectancy?

Are you planning and preparing to enjoy a long, full life? While no one expects to live forever, you may live much longer than you think. According to the National Center for Health Statistics, a male born today can expect to live to age 76 and a female to age 81. 1

1) Source: National Vital Statistics Report, Vol. 66, No. 6, 2017 (data as of 2015)

Considering that 65-year-old retirees could spend as much as one-third of their
lives in retirement, the need for sound lifetime financial management becomes evident.
Remember that these figures are based on averages — so you are just
as likely to live longer than the average expectancy as you are to die sooner than
expected. Are you financially prepared for a long, full life?

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Your Results
Description Amount
Your gender: 0
Your current age: 0
Your life expectancy is age: (This figure is just an average. Make plans for a long
life.) 		0

Did you know that the older you are, the longer you are likely to live? It seems
illogical, but it’s true. The chart below shows the current life expectancy of males
and females at various ages.

Life Expectancy



Life Insurance

Life Insurance

How Much Life Insurance Do You Need?

Providing for your family in the event of your death is a fundamental of risk management. And life insurance benefits that replace your income may be one of the best ways to meet your family’s ongoing financial needs. This calculator is designed to help you estimate the amount of life insurance you would need to produce a sufficient income stream for your family.

Ensuring that your family can maintain its current lifestyle in your absence is
the purpose of life insurance. The figure below shows the life insurance benefit
you would need to provide the income stream you specified for the desired number of years.

Skip Table Information

Your Results
Description Amount
Current income before taxes $0
Number of years income is needed 0 years
Based on the above assumptions, you need the following amount of life insurance: $0

The information provided is not specific insurance advice, a guarantee of coverage, or a recommendation. The Life Insurance Calculator is a tool that can help you estimate your life insurance needs. The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance. As with most financial decisions, there are expenses associated with the purchase of life insurance. Please consult your insurance professional to determine the coverage appropriate to your individual situation.

How will the income stream from your life insurance benefit be paid out? What will
the balance be year after year? The chart below shows the initial value of a life
insurance benefit, how the account balance would fluctuate year by year, and when
the benefit would be exhausted. Adjust your answers below and recalculate to see
how the new numbers will affect your life insurance benefit.

Year by Year Benefit Value