Financial Compass:Disability Screen

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Disability

The Disability screen lets you enter information about disability income replacement needs, and current and proposed disability insurance policies. The information entered on this screen is used for the Disability Income Analysis. The screen is divided into two sections as follows:

1. The top section collects information about existing disability coverage. This is collected for informational purposes only, and is used to determine how much coverage to recommend for a proposed disability event.
2. The lower section collects information about proposed disability income insurance coverage. This is information is required for the Disability Income Self-Insure Analysis and Disability Break-Even Analysis. The proposed policy may be based on the income replacement need if there are no existing policies or if all policies need to be replaced; or the differences between the income replacement need and existing coverage if purposing to supplement existing policies.

Name	Definition
Annual Salary / Income	This field is linked to the Annual Salary / Income field on the Income panel. Amounts entered in the Income panel will update the amount shown here, and vice versa. The Annual Salary should be entered in today's dollars. Financial Compass will automatically increase this amount in future years by a cost-of-living adjustment that is entered in the General Inflation Rate field on the Assumptions screen. For the Disability Income Analysis, Financial Compass uses this amount to determine disability income replacement needs and the income for the non-disabled spouse.
What percentage of current annual income would you want to replace?	The percentage of the individual's annual salary that is the income replacement need in the event of a disability. The income replacement need is based on the individual's annual salary and not the total household salary of the client and co-client.
What monthly disability income insurance benefits do you currently have?	The total monthly benefits from all existing disability income insurance policies. This amount can be entered as a total in this field, or you can click to access the Details of Disability Income Insurance Coverage screen where information can be entered separately for each policy. If two or more policies are entered on the Details screen then this field is locked, grayed-out and displays the total monthly benefit.
Proposed Disability Income Insurance coverage	Monthly Benefit Amount The monthly benefit for the proposed disability income insurance policy.
	Annual Cost of Living Rider The annual cost of living adjustment which would be applied to the proposed policy benefits.
	Benefit Period The benefit period from the options provided.
	Annual Premium The annual premium for the proposed policy.
Details of Disability Income Insurance Policies screen	Insured The name of the person on whose disability the policy is issued.
	Company The issuing company of the policy or a description.
	Monthly Benefit The monthly benefit payable to the insured.
	Policy Type The policy type from the options provided.
	Benefit Period The benefit period from the options provided.
	Annual Premium The annual premium.