Job A or Job B?

You have been offered a job and get to pick between two different compensation structures.  Which one are you choosing?

Job A will pay you $80,000/year while working and $0 if you are unable to work due to an injury or illness.

Job B will pay you $78,500/year while working and $53,000 (tax-free) if you are unable to work due to an injury or illness.

With an Income Replacement Benefit, you create a safety net around you and your family.  You own and control the policy and the rates are guaranteed until you turn 65. 

This chart illustrates your earning potential during your working years.  If you are unable to work due to an illness or injury, you still need a regular monthly income.  Put the insurance company’s money to work so your family can maintain the same standard of living.

Your Earning Potential by age 65:

Annual IncomeAt Age 25At Age 35At Age 45
$35,000$2,359,089$1,536,595$894,063
$50,000$3,370,128$2,195,135$1,277,233
$65,000$4,381,166$2,853,676$1,660,403
$90,000$6,066,230$3,951,243$2,299,019
$120,000$8,088,306$5,268,324$3,065,359
$150,000$10,110,383$6,585,405$3,831,699
Assumes an annual increase of 2.5%

This strategy works for all income levels and most occupations.  If you want to learn more, please reach out to discuss further.