Checking off your life list: Disability and life insurance
Does it seem like your life has a checklist? First job? Check. Starting to save for retirement? Check. Disability and life insurance? I’ll do that later.
But waiting until “later” can have serious financial consequences if you become too sick or hurt to work or if you pass away. Disability and life insurance help make sure that if the unexpected happens, you and your family will have the money needed help to cover expenses, maintain your standard of living, and keep your future plans on track.
Protect the life you’re building
Maybe you’ve bought your first home. Or you’ve started a family. Or you’re making solid progress on student loans or starting an emergency fund. These are all great accomplishments—and they’re worth protecting.
Think of disability insurance and life insurance as your risk-protection plan for all the surprises and challenges of life. With both types of coverage, you can relax a little and enjoy the ride, knowing you (and your family) have the security of a financial back up plan to fall back on when it’s needed.
What’s the difference between disability and life insurance?
Basically, disability insurance helps financially provide for you and your family if you become too sick or hurt to work. And life insurance helps financially provide for your family upon your death. Together, they help you and your loved ones maintain your standard of living and keep life moving forward. Here’s an overview:
|Disability insurance||Life insurance|
|How it works||Provides monthly benefits to you to help cover living expenses if you become too sick or hurt to work.||Provides a benefit to your beneficiary(ies) to help ensure the people you care about most are provided for when you’re not there.|
|Policy options||Individual Disability Income protection provides a monthly benefit that works “like a paycheck” if you’re too sick or hurt to work.|
Retirement savings protection helps safeguard your ability to save for retirement if you’re too sick or hurt to work.
|Term policies offer coverage for a specific length of time.|
Permanent policies give you long-term coverage, plus the potential for cash value growth.
|When you can use it||When you experience a disability or illness and can’t work.|
Retirement savings protection places your money in a trust, which you can access in retirement.
|Benefits are paid to your loved ones (known as beneficiaries) upon your death. And permanent policies may have cash value accumulation that you can use during your lifetime.|
|Estimated monthly cost1||Less than $26 a month for $1,000 of monthly disability insurance benefits.3||Less than $15 a month for $250,000 of term life insurance.2|
Estimated monthly cost for illustrative purposes only. The actual cost may vary.
Make risk protection part of your life’s plan
Just like you protect your home and car with insurance, protecting your income and your life is especially important. Plus, disability insurance and life insurance are more affordable than you may think.
For instance, in the example above, you can get disability and life coverage for $41 a month. That’s less than most people’s monthly cell phone bill or date night. And both types of coverage can be customized based upon your needs and budget.
Keep in mind that with both disability and life insurance, the cost of coverage tends to increase as you get older. But most policies let you lock-in your premium rate. That means if you buy a policy at a younger age, you can get a lower rate and keep it for years to come.
You’ve worked hard to get where you are. Protect what you’ve achieved with disability insurance—and take care of those who count on you with life insurance.
1 Based on a healthy, 35-year-old male.
2 Based on current rates and charges for a 20-year Principal Term policy for a 35-year-old male, non-tobacco, rated Super-Preferred. For specific information, please contact your financial professional.
3 Michigan resident, non-tobacco, To Age 65 Benefit Period and Your Occupation Period, $1,000 maximum monthly benefit, 90-day Elimination Period, 5A occupation class, Residual Disability and Recovery Benefit rider, and future increase riders.
Disability income insurance has limitations and exclusions. For specific costs and complete details of coverage, contact your Principal® representative.
Insurance from Principal® is issued by Principal National Life Insurance Company (except in New York) and Principal Life Insurance Company, Des Moines, IA 50392.