Income protection to cover life s essentials

Transcription

1 RiverSource Income Protection Life term insurance Income protection to cover life s essentials F (11/13)

2 Helping you protect an important financial asset your paycheck. If you re like most people, you depend on your paycheck to maintain your quality of life. Your income pays for a wide range of essential and discretionary expenses from monthly mortgage payments to entertainment. But what if the unexpected happens, and those who depend on you could no longer depend on your paycheck? Would they be able to maintain their lifestyle and keep their dreams within reach? Your financial priorities change at every life stage. What meets your needs at age 25 is likely different than when you reach 55 just as an oak has different needs as it grows from an acorn to a sapling to a tree. You need protection solutions that fit your evolving needs and priorities, including ensuring a confident retirement. Through life and disability income insurance, you have access to a lifetime of solutions to help you protect income, grow assets, and give to loved ones or charity. For clients in the protect stage of life, RiverSource Income Protection Life term insurance can help clients protect those who matter most, maintain their lifestyle and protect their dreams if an unexpected event occurred. Income Protection Life term insurance replaces your monthly income in the event of death. The monthly benefit ensures a guaranteed monthly income stream to help pay for expenses. All guarantees are based on the continued claims-paying ability of the issuing company. Can your family live on $1,130 a month? That s the average monthly benefit paid by Social Security Disability Insurance (SSDI) at the end of U.S. Social Security Administration, Disabled Worker Beneficiary Data, December 2012

3 Provide security for your loved ones Monthly paycheck Income Protection Life is term life insurance which provides a systematic, monthly benefit payment 2 up until a selected retirement age, and can replace the monthly income that others may depend on to meet their needs. This benefit can help your beneficiaries continue to: Maintain lifestyle Cover essential financial obligations or debt Keep a family business running Fund retirement or college education Replacing your income may also help those closest to you keep money in savings or investments. Without income, they may need to tap into assets earmarked for other purposes just to cover essential monthly bills. Predictable premiums Income Protection Life term insurance features guaranteed, level premiums. This means you can count on paying the same premium during your working years to your chosen retirement age (60, 65 or 67). 2 A portion of each monthly benefit payment will be reported as taxable income to the beneficiary. Please consult your tax advisor.

4 Enjoy simplicity in life insurance protection Simple to apply for and easy to access. Getting started Income Protection Life term insurance can help make sure that if something unexpected happens and you are no longer here those you care about most can pay the monthly bills. When you apply for Income Protection Life term insurance, your financial advisor can help you: Choose the benefit amount based on your income Decide how long you d like the benefit to pay (up to age 67) Plan to keep pace with inflation using the cost of living adjustment (COLA) benefit Receiving guaranteed benefits After a death, your beneficiaries will receive a systematic, monthly benefit to help cover their expenses. The total benefit paid will be based on several factors. This includes the age of the insured at death, as well as benefit amount, benefit period and COLA benefit amount which are selected at application. By receiving monthly income instead of a lump sum, your beneficiaries face less risk of exhausting the benefit too quickly. What s more, benefit payments can be automatically deposited to any beneficiary s account, including an Ameriprise Financial account. Be sure that before you purchase, you ask your financial advisor about the life insurance policy s features, benefits and fees, and whether the life insurance is appropriate for you, based upon your financial situation and objectives. Tim and Amy Tim, age 28, is the proud owner of a successful computer store and draws $5,000 in monthly net income. His wife, Amy, age 27, is the store manager and earns $2,400 net income per month. Together they have two young children. Tim and Amy want to make sure that if one of them dies the family would be able to pay recurring monthly bills such as mortgage and car payments, health care and groceries. They also want the family to keep saving for college education and future retirement dreams. Expenses Together, Tim and Amy have a mortgage and monthly expenses totaling $6,600. They put additional income into savings for future needs.

5 Take advantage of flexibility to customize coverage Choose multiple options and features now, with flexibility to make changes as your needs evolve. With RiverSource Income Protection Life term insurance, you can choose: Monthly benefit amount. Select a minimum monthly benefit of $500 or up to 100% of your monthly gross income. Benefit period. Select the duration of benefit payments, up to the insured s age of 67. At a minimum, the monthly benefits will be paid for 24 months after the death of the insured. Cost of living adjustment. 3 With this optional feature, the benefit will adjust annually during the benefit payout to help offset increases in living expenses due to inflation. 3 Available for additional premiums. There is no guarantee that the cost of living adjustment feature will keep up with inflation. 4 In Florida, if the benefit becomes payable to an estate, it will be paid as a lump sum. Permanent protection. Unlike permanent insurance, Income Protection Life term insurance does not allow you to grow cash value in an income tax-deferred manner. However, for a limited period, you can elect to convert Income Protection Life insurance to permanent insurance after issue without additional medical underwriting. Lump-sum alternative. 4 Your beneficiaries will have the option to take a lump-sum benefit instead of a monthly income stream, if desired. Waiver of Premium. This optional rider, available for additional premiums, provides additional coverage so that if you become disabled and cannot work, the premiums are waived on the policy. Contact your financial advisor today to learn more about RiverSource Income Protection Life insurance and how to help ensure your income along with those who matter most are protected. Income Protection Gap If Tim were to pass away, the family would have a $4,200 monthly income gap. If Amy were to pass away, the family would have a $1,600 monthly income gap. In both scenarios, the family would no longer be able to save for college or retirement. $4,200: Gap $1,600: Gap $2,400: Amy s income $5,000: Tim s income Solutions Coverage solution After consulting with their financial advisor, Tim and Amy purchase two policies: Income Protection Life term insurance to age 65 with a $7,167 monthly benefit for Tim, and Income Protection Life term insurance to age 65 with a $3,000 monthly benefit for Amy. These policies help cover the income protection gap for Tim and Amy; the monthly benefit also provides additional income for retirement and college education savings and will help to cover any applicable income taxes. How the benefits work The total benefit paid would be based on Tim or Amy s age at death. For example, if Tim were to die immediately after policy issue, Tim s chosen beneficiaries (the family), would receive 444 monthly payments of $7,167, or a total of $3,182,148. Alternatively, if Tim dies at age 64, the family would receive a minimum of 24 monthly payments or a total of $172,008.

6 The RiverSource Story Life has many twists and turns and we understand the importance of balancing the need to protect what is important to you while you invest toward your financial goals. RiverSource creates innovative products designed with you and your life in mind. Through a balance of asset and risk management and built on a heritage of more than 115 years, we work with you and your financial advisor to help grow your assets, manage your income and protect what matters most today and tomorrow. RiverSource Life Insurance Company 968 Ameriprise Financial Center Minneapolis, MN RiverSource Life Insurance Co. of New York 20 Madison Avenue Extension P.O. Box 5144 Albany, NY riversource.com/insurance Income Protection Life term insurance is not available in all states. This brochure applies to ICC and and optional Waiver of Premium Rider numbers ICC and In New York, it applies to , , and optional Waiver of Premium Rider number Insurance and annuity products are issued by RiverSource Life Insurance Company and in New York, by RiverSource Life Insurance Co. of New York, Albany, New York. These companies are affiliated with Ameriprise Financial Services, Inc. Only RiverSource Life Insurance Co. of New York is authorized to sell insurance and annuities in New York RiverSource Life Insurance Company. All rights reserved F (11/13)