Achieving long-term financial security in a rewarding career is a priority for many and income is a critical component of getting there.
Ninety percent of individuals feel their ability to earn an income is more valuable than their home and personal possessions, medical insurance or savings, according to a study by the Council for Disability Awareness. What would happen to that valued asset—your ability to earn income—if you were unable to work for two and a half years (the average long-term disability claim duration) because of an accident or illness?
In the event of a disability, individuals earning $250,000 annually stand to lose more than $5 million over 20 years. The Social Security Administration estimates one in four will be disabled before retirement. With the risk of a disabling event being three to seven times more likely than death during working years, it is important to review clients’ income protection plans to make sure they provide adequate coverage.
Group long-term disability (LTD) coverage offered through an employer provides basic income protection but often falls short of adequately addressing the needs of highly skilled executives and managers:
Integrated executive disability plans are designed to address these gaps and provide a more comprehensive plan for protecting the current and future earnings potential of higher-income professionals.
Through an integrated plan approach that utilizes supplemental individual coverage to insure a greater portion of an executive’s compensation, policies contain more comprehensive benefit features, provide additional benefits for more severe disabilities, guarantee premiums to retirement age (fixed premium coverage) and are individually owned (making them portable).
When these policies are purchased through employer sponsorship, they may be available on a guaranteed standard issue basis (no medical underwriting) with significant pricing discounts. The more participants in the integrated plan, the more the guaranteed coverage and lower the premiums.
Variable life and annuity products, as well as other securities products, may be sold in the following states: Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Illinois, Maryland, Massachusetts, New Jersey, Nevada, New York, Ohio, Pennsylvania, Texas, Utah and Virginia. Residents of other states should consult with a local registered representative for securities products.
Proper state registration is mandatory prior to conducting business in any state. Securities offered through M Holdings Securities, Inc., a registered broker dealer, member FINRA / SIPC. Pfleger Financial, Inc. is owned and operated independently from M Holdings Securities, Inc. Pfleger Financial, Inc. is a member of M Financial Group. Please go to mfin.com/DisclosureStatement.htm for further details regarding this relationship.
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