Is your income adequately protected? List your expenses and the possible sources of income you would have if you were unable to work due to an injury or illness. Could you make ends meet? Monthly Disability Benefits and Additional Income Group Disability Insurance Benefit (after taxes) $____________________ Individual Disability Income Insurance Benefit $____________________ Monthly Social Security Disability Benefit (if any) $____________________ Additional household income (rental, spouse, investments, etc.) $____________________ Total$____________________ Monthly Expenses Mortgage/rent$____________________ Utilities and household expenses $____________________ Groceries and household supplies $____________________ Auto payments and expenses $____________________ Loans, credit cards and charge accounts $____________________ Insurance premiums $____________________ Child care $____________________ Savings and investments $____________________ Other $____________________ Total$____________________ Subtract your monthly expenses from your total monthly disability benefits and additional income. If there is an income shortage, consider protecting your income with an Individual Disability Income insurance policy from Principal Life Insurance Company. To electronically determine your income protection needs, visit www.principal.com/disabilitycalculator or scan the code to the right with your smartphone. In minutes, you’ll see if you have an income protection gap. We’ll give you an edge® Principal Life Insurance Company, Des Moines, Iowa 50392-0001, www.principal.com Insurance issued by Principal Life Insurance Company, a member of the Principal Financial Group®. Disability insurance has certain limitations and exclusions. For costs and complete details of coverage, contact your Principal Life financial representative. JJ1025-14 | HH750 | 08/2012 | t12080303di FOR INDIVIDUALS Individual Disability Insurance Are You Protected? How likely are you to have a disabling injury or illness? Nobody wants to think about it, but you must take steps to protect your family and your future from what might happen if you became too sick or hurt to work. Everything you’ve worked so hard to build could be lost. As the following chart illustrates, disabilities play no favorites: Percentage of claims Miscellaneous 11% Musculoskeletal System/ Connective Tissue 31% Injuries 9% Nervous System 14% Infectious Diseases 2% Circulatory System 10% Cancer 7% Mental & Nervous/ Substance Abuse 16% Source: Principal Life Disability insurance claim payments issued in 2011. The above is for illustration purposes only and is not intended as an inclusive representation of all claims. Your income potential A disabling injury or illness could prevent you from receiving your potential earnings. This loss of income could be substantial. That’s why many recommend that you protect your most valuable asset — your ability to work and earn an income — with disability insurance. POTENTIAL EARNINGS TO AGE 65 (Assuming 3% annual salary increase) Age Annual Income $50,000 $100,000 $150,000 30 $3,023,104 $6,046,208 $9,069,312 35 $2,378,771 $4,757,542 $7,136,312 40 $1,822,963 $3,645,926 $5,468,890 45 $1,343,519 $2,687,037 $4,030,556 What’s at stake if you can no longer earn an income? Find out how much you could potentially earn over the rest of your career with the Earnable Income Quotient (EIQ) tool from the Council for Disability Awareness. Scan this code with your smartphone to learn more. One in four of today’s 20-year-olds will become disabled before they retire. Social Security Administration, Factsheet, March 2011 In the last 10 minutes, 490 Americans became disabled. National Safety Council®, Injury Facts® 2010 edition. Few could live on 42% of their income Group disability insurance is a valuable insurance benefit, but it may not be enough. A typical policy covers 60% of your gross income, and benefits are usually taxable (when received). As the chart on the right shows, an individual disability income insurance policy can supplement group benefits, helping protect a greater portion of your income. Chart based on $6,250 gross monthly income ($75,000 annual), with 60% Group Long-Term Disability program, assuming a 30% tax bracket for Federal, State and FICA.