Would You Be Happy If MOST Of Your Puzzle Was There?
Petersen International Underwriters provides pieces of the puzzle to make your Disability Financial Planning complete, not just partially covered!
Asset Protection begins with income planning, and income planning requires sufficient amounts of disability insurance. However, what is “sufficient”?
Take the case of Mr. Smith, executive and business partner…
Annual income is $250,000. Group LTD states, “Benefits of 60%… UP TO $10,000 maximum.” Industry and financial experts all agree that a MINIMUM of 65% of income replacement is required. Is his coverage sufficient?
Group LTD: 60% of $250,000 = $150,000 = $12,500/month
Maximum Benefit = $10,000 (Cap of Group LTD)
Financial Experts Advise: 65% = $162,500 annual = $13,540/month
A shortfall of $3,540/month
What about the contribution into his pension? Mr. Smith puts away $20,000 more per year directly into a pension plan. Group LTD would not count this even if it were under the cap.
Bottom line, Mr. Smith is set to personally lose $62,450 each year due to a disability! ($3,540 x 12 + $20,000)
What about his business partners and losses?
Business Overhead Expense? Buy-Sell? Key Person?
A fine symphony is not just the horns and drums, but is all of the various, intricate and subtle instruments that make it all work together.
PIU offers plans and coverage that makes it all work together!