The Northwestern Mutual Life Insurance Company
your most important asset is...
Your Ability
to Earn an
Income
individual disability
income insurance
Is Your Income Protected?
During Your Income-Producing Years … What Is Your Earning Power Worth?
... there are two basic threats to your long-term ability to What does it cost for your:
earn money. • mortgage?
• Death • Disability • groceries?
• cars?
Death is inevitable; only the timing is in question. So most • children’s education?
people purchase life insurance to protect the financial
• entertainment?
welfare of those who depend on them.
How would you maintain a standard of living or save
However, the economic threat caused by a disability is for retirement if your income were reduced or if it
just as real. In fact, we are more likely to become disabled disappeared?
than we are to die prematurely. How much would you lose each month if you were
The following chart shows the relative probability of a totally disabled?
long-term disability (lasting at least 90 days) versus dying
at various ages. For example, a 37-year-old is more than Disability’s Impact On Income
three times more likely to become disabled than to die
before reaching age 65.
Age When
25 35 45 55
Disabled
Odds Of Long-Term Disability vs. Death Monthly
$
3,000 $5,000 $8,000 $12,000
Income
3.5 to 1
Loss of Income After:
3.3 to 1
One Year $36,000 $60,000 $96,000 $144,000
2.7 to 1 2.8 to 1
Two Years $72,000 $120,000 $192,000 $288,000
2.2 to 1
Five Years $180,000 $300,000 $480,000 $720,000
To Age 65 $1,440,000 $1,800,000 $1,920,000 $1,440,000
27 37 42 47 52
age
Disabilities Deaths
Source: Disability Insurance Resource Center
Disability Insurance Statistics, 2007
You Might Think That Your Income Disability Insurance Products
Is Already Protected, But Is That From Northwestern Mutual
Really The Case? For personal protection.
Social Security (SSDI) Individual For Small Business, including
To the Social Security Administration, total disability Disability Income a MultiLife discount for
qualifying groups.
means you are so severely impaired, physically or mentally,
that you cannot perform any substantial, gainful work. The Long-term or short-term
Group
impairment must be expected to last at least 12 months or Disability Income
coverage for groups of three
to result in earlier death (p. 32 Guide to S.S. Medicare). In or more people.
addition, SSDI benefits alone may fall far short of meeting Provides temporary coverage
full income protection needs. Interim-Term until an employee qualifies
Disability for employer-sponsored
Worker’s Compensation disability coverage.
This type of coverage only provides benefits for injury or
illness that occurs on the job. In reality, only about 4% Provides a monthly benefit for
Disability Overhead covered overhead expenses
of disabilities are actually work-related. Expense when a business owner is
(Source: National Safety Council; JHA 2002 U.S. Group Disability Rate
totally or partially disabled.
and Risk Management Survey)
Funds a disability buy-out
Company/Professional Programs Disability Buy-Out agreement with installment
Even the best group disability income insurance programs or lump sum payments.
may have restrictions and few options or choices, and
Provides a benefit to the
may not cover pension and/or profit-sharing contributions,
Key-Person Disability business in the event the
deferred compensation, commissions, or incentive bonus key person is disabled.
income. Because of limitations in the group contract,
the monthly benefits may not meet your full income Product availability is subject to state approval. Consult a Northwestern Mutual
Financial Representative to determine product availability in your state.
protection needs.
Individual Disability Income Insurance Policies
An individual disability income insurance policy is a more comprehensive type of coverage and has the flexibility to fit your
specific individual needs. Income items, such as pension and/or profit-sharing contributions, deferred compensation, commissions,
and bonuses, may be included in insurable income, providing coverage that more closely matches the financial need. Individual
disability income insurance coverage is designed to help replace the loss of earned income with ...
• Benefits payable for total and partial disabilities.
• Choices of various beginning dates and maximum benefit periods.
• Benefits that can be indexed for inflation.
• Options available to purchase additional disability income coverage.
• Various plan designs providing personal protection as well as business protection.
Contact a Northwestern Mutual Financial Representative to discuss
your comprehensive and personal income protection needs.
The Northwestern Mutual Life
Insurance Company • Milwaukee, WI
www.northwesternmutual.com
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