Disability Insurance Needs Analysis

With Snap's Disability Illness Needs Analysis tool, you can estimate the annual benefit required to replace your client's income if they became disabled and could no longer work.

On the Planning page, select Needs Analysis and then Disability Insurance.

If your Planning page has a lower resolution or your window is smaller, the buttons will be displayed as icons. Click the button with the Needs Analysis symbol in the same location.

By default, there is one analysis per spouse, and you can include up to 4 analyses in total by clicking on the box with the "+" sign to the right. You can click anywhere in that box, not just by the "+" sign.

You can also delete extra analyses by scrolling to the bottom and clicking Delete.

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In the General section, you can choose the client or spouse from the dropdown box and add a description for the analysis.

• The Insured Person is the person who would experience the disability.
• The Analysis Description is optional but helpful when you have multiple analyses. This description will appear in the Summary table of your analysis and its Client Report page.

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Here you can indicate the amount of income to replace with the annual Disability Insurance benefit:

1. Determine the insured's Personal Income (annual amount, pre-tax). This may include employment income, pensions, or any other income. If you base the analysis on employment income only, you can import the amount from your projections by clicking within the text box and then selecting that option just above the data entry field.
2. Determine the Personal Income Percentage to be covered by the insurance policy.

In the example below, 70% of the insured's annual employment income of $100,000 is being replaced.

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In the Available Resources section, you can account for both Existing Disability Insurance and Other Income.

• Snap automatically pulls in any disability insurance policies already entered into the projection. You can adjust how much of that coverage to include by selecting a percentage that reflects its expected contribution.
• Additionally, you can manually enter the annual amount of any Other Income that may be used to help meet financial needs during a period of disability.

The Total Resources Available will be subtracted from the Total Disability Insurance Required to determine the Extra Disability Insurance Required.

In this example, 100% of an existing Disability Insurance will be used, and there is no Other Income available as a resource.

As you fill out the form, your progress is saved automatically. At the bottom of the Setup page, there is a Saved/Edited indication. Once it indicates Saved, you can proceed directly to the Summary of the Disability Needs Analysis.

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The Summary page puts all of your entries together into a simple table. It shows the following:

• Income Replacement – the total amount (in black font) and the list of assumptions used in the calculation (in gray font).
• Total Disability Insurance Required – the total amount of the annual benefit the client would need to replace their lost income.
• Existing Disability Insurance used for the calculation and the amounts of other available income, together combined into Total Resources Available.
• Extra Disability Insurance Required – Total Disability Insurance Required net of Total Resources Available.

To update the analysis and rename the description/liabilities, click Setup at the top of the page. 

To include the Summary in your report (if it's not already been included by default):

• Go to the Client Report -> Report Builder -> Included Pages, select Disability Needs Analysis under the Gallery and drag and drop it to the list of Included Pages.

In the Report Editor, you can view the Disability Needs Analysis and add comments.

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