Disability Income Protection Case Study – Tanya Hair Stylist
Disability / Income Protection Case Study
These case studies are for educational purposes only. Always work with your licensed financial professional to discuss income, life insurance, or annuity options based on your circumstances. If you would like to see what income protection disability would look like for you schedule an appointment with a Retire Happy Guide Financial Professional.
Tanya R. age 36, California
Current income: $138,000 a year.
Position: Professional Hairstylist
Tanya is a professional hair stylist in Orange County California. Working as a hairstylist for nearly 15 years now, and making a good income, not just a side gig income, but a major contributor to providing for her family. One of Tanya’s biggest fears is if something were to happen to her, such as getting cancer, how would she continue to provide for her family when she is not working?
Tanya reached out to us and after we discussed her goals and objectives, we provided her with a long-term individual disability / income protection solution.
The disability solution provides Tanya with a monthly benefit paid directly to her if life were to happen and she got cancer, heart attack, stroke, an accident or injury occurred that would prevent her from working.
Coverage: $5,700 per month. This is how much Tanya would receive each month if an illness, sickness, accident, or injury occurred that prevented her from working as a hairstylist.
Length or Benefit Period: 5 Years. Tanya chose 5 years but there are options that a person can choose such as a 10-year benefit period or up to age 65.
Elimination Period: 90 days. This product is a long-term disability designed to provide you with larger monthly benefit and for a longer period of time. With a long-term disability, it is common to have an elimination period of 90 days and some carriers have a 180-day elimination period before you begin to receive benefits.
Monthly premium for Tanya is:
$237.98 with a 5-year benefit period.
$302.97 with a 10-year benefit period.
$385.40 for a benefit period to age 65.