Income Replacement

/Income Replacement
Income Replacement2018-07-13T19:43:40+00:00

Your Greatest Asset is The Ability to Create Income.

man worried about his income

You’ve got a machine just sitting around your house. It’s a money-printing machine, and it’s perfectly legal. This machine is expected to print $75,000 this year before taxes. You’ll use that cash to pay your household expenses.

Each year, the machine will print 3 percent more than it did in the previous year, and it will continue doing so for the next 40. That means, over its lifetime the machine will print $5,655,094.48, easily making it your most asset today.

We don’t question the need to buy insurance for the things our money machine purchases. But few of us know if—or at least how and to what degree—their income-generation engine is protected.

Do you?

The insurance product that helps protect your income in the case of a disabling injury is disability income insurance. Although, according to Jack Burns, President of JB Life, it should be called “income protection insurance” because the focus on disability draws attention away from what is really being protected—your ability to create income.

We know each person’s situation is different, and exceptions numerous, consider the following list of minimum provisions to include in your supplemental policy:

  • Base benefit -60 percent of predictability income; higher, if available.

  • Benefit period – To age 65 would be great, but at least five years.

  • Residual benefit – You want this provision; most claims are partial.

  • Elimination period – 90 or even 120 days if you can afford it.

  • COLA – If you’re in your 50s, you might opt out, but if you’re younger, you’ll want this.

  • Future insurability options – Some policies include this, but if not, you want the rider.

  • Renewability provision – Non-cancelable/guaranteed renewable is ideal.

  • Social Security offset – May complicate claims, but it will help save on premiums.

  • Disability definition – Any-occupation is too weak, but pure own-occupation can be excessively expensive; consider “modified own-occupation,” “income replacement” or the equivalent.

Here at JB Life, we understand there are commonalities in protecting your financial income, however. our commitment to our clients is to create a unique individual plan to help you achieve your financial goals. Contact us today and protect your most asset, you.

Get Started Today!

Contact your JB Life consultant and financially protect what’s important now, while helping to fund a college education.