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EVALUATING GUARDIAN DISABILITY INSURANCE: Your Income is Your Most Valuable Asset Disability Insurance Features Key Considerations Before You Decide Important Questions to Ask Your Insurance Advisor It’s human nature — most of us don’t want to think about getting sick or injured, or about struggling financially because we are unable to work. Yet it’s a possibility we all must consider, especially since disability is a common — and growing — problem, and personal savings rates are at historic lows. Take a moment to digest these facts: A 20-year-old worker has a 3-in-10 chance of becoming disabled before reaching retirement age. (www.socialsecurity.gov/dibplan) A disabling injury occurs every three seconds in a public setting and every four seconds in the home. (National Safety Council, “Injury Facts,” 2007 Edition) The number of workers who become disabled has risen by 35% since 2000 as reported by the Social Security Administration. (disabilitycanhappen.org) The personal savings rate in the United States averaged just 0.5% in 2007, with a seven year average at 2.0%. (U.S. Bureau of Economic Analysis, 2007) Request a Quote Call 888-513-2300 But what does this mean to real people and the lives they lead? The numbers below tell the troubling story: Two-thirds of American families live from paycheck to paycheck. (Parade Magazine, “Is the American Dream Still Possible?” April 23, 2006) Disability is the leading cause of personal bankruptcies. It causes nearly 50% of all mortgage foreclosures, compared to 2% caused by death. (Health Affairs,The Policy Journal of the Health Sphere, 2 February 2005) More than 70% of working Americans do not have enough savings to meet short-term emergencies, let alone a long-term disability. (National InvestmentWatch Survey, A.G. Edwards Inc., 2004). As you can see, losing your income to a disabling illness or injury could happen to you. So how would you answer these important questions? Could I afford to live without my income? How much of my current income goes to cover living expenses each month—the mortgage, car payments and gas, utilities, food, and home repairs—and how would these be paid with no income? How long would my savings last? What lifestyle changes would my family or I have to make to accommodate the lost income? What would happen to plans for the future—college funding, travel, retirement and legacies? You see, the risk of disability isn’t just physical. The consequences can have a profound emotional and financial impact on you, your loved ones and your future opportunities. Request a Quote Call 888-513-2300 Do You Have Other Resources To Pay the Bills? Can You Really Count On Them? Many people think that if they couldn’t work, they could still get by without disability insurance, but these resources are typically short-term and can be unreliable: PERSONAL ASSETS – Most financial advisors recommend counting on cash reserves for only the first few months. A long-term disability can rapidly erode assets. SPOUSAL INCOME – If a couple or family relies on two incomes when both wage-earners are well, it’s unlikely they will manage on a single income when one person is disabled, especially with additional medical expenses and other special needs. SOCIAL SECURITY – Given the stringent requirements to qualify for benefits, fewer than 30% of claims are approved at the initial level. After all appeals, only about half of claims are ultimately approved. (Source: Social Security Administration, 2006) WORKERS COMPENSATION – Benefits generally cover employees for job-related accidents and illness, not those suffered outside of the workplace. GROUP LONG TERM DISABILITY (LTD) PLANS – Employer and association long-term disability plans are highly variable, but rarely offer benefits such as a guaranteed premium or cost of living adjustment. The insurer or plan sponsor may be able to modify plan benefits or cancel the plan. Benefits under employer plans are typically offset by Social Security and other government programs, and Group LTD coverage is not portable, should you leave your job. STATE TEMPORARY DISABILITY – New York, New Jersey, California, Hawaii and Rhode Island provide a minimal level of short-term coverage for employees. Other states offer no such coverage.

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