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.
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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.