SEMINAR - MAR 9, 2006

Here are the highlights from the Disability portion – (see the highlights from Karen Knorr – True Colors at the end)

There are 9.9 Million Canadians with some form of disability insurance

This leaves 6.3 million Canadians without any form of Disability Insurance

Understanding Employee Income

• When buying an income protection plan, “Earned Income” is typically used to determine benefits.

• “Earned Income” is simply after tax Income...

Since 1986, there has been a 14% increase in the workforce, which is less than one percent a year

In that same time, there has been a 41% increase in Self-employed, which is over four percent per year.

The Self-Employed have the ability to significantly reduce their income tax by writing down their income with allowable expenses.

Tax planning reduces “Earned Income” and also income taxes, but it also...

Diminishes the ability to:

• Apply for a car loan

• Apply for a mortgage

• Apply for other credit and

• Buy the appropriate amount of Income Protection insurance…

What event triggers a Life insurance benefit?

Death.

What event makes a Disability insurance benefit payable?

Disability.

How many times can you claim on a Disability insurance policy?

Many times.

How long must the insured be disabled before disability benefits are payable?

Depends upon the Waiting Period.

Does occupation have an influence on the ability to obtain Disability insurance?

Occupation is the most important factor with Disability insurance.

It determines:

• insurability

• product availability

• premium

With Life insurance your ability to afford the premium is considered.

With Disability insurance your income is what is being insured therefore it must be justified!

Three Important Questions…

Question 1:

• How much coverage do you need?

• This is referred to as the Monthly Benefit

• For example: $2,000/mth

Question 2:

• How long can you wait before you receive the benefit?

• This is referred to as the Waiting Period

• Waiting Periods include 30, 60, 90, 120, 180, 365, 730 days

Question 3:

• How long do you want to receive the benefit?

• This is referred to as the Benefit Period

• Benefit Periods include 2yr, 5yr, 10yr and age 65

Here’s a simple disability needs analysis that tries to answer two basic questions:

1. How much money will you and your family need during a disability?

and

2. Where will that money come from?

You insure all your other assets, right?

House, Cars, Other Assets…

You also spend money to protect all those possessions...

But what about the one thing that makes them all possible…your income?

How much are you now spending to protect your most valuable asset…your ability to earn an income?

How much does it cost you and your family each month just for the bare necessities (Food, Mortgage, Clothing, Auto Expenses, Savings, etc.)?

Protect your biggest asset – your ability to earn an income!

Thank you KAREN KNORR – TRUE COLOURS!

Well Karen had us all in fits of laughter and we all had a lot of fun getting to see who was what colour personality type. What a great way to better understand not only yourself, but our co-workers, and loved ones. Karen does full workshops for ‘Sales and Customer Service’ – to help you know what type of clients that you are dealing with, and she also does a workshop featuring learning more about the ‘Dark side’ If you want to reach Karen and get more information – you can call her at AH HA moments - (250)954-2156 or e-mail her at Karen@knorrfamily.org

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