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Business ProVider Disability Insurance Products for Business
Overhead Expense & Disability Buy-OutA New Standard for Business Protection
Disability income products underwritten and issued by Berkshire Life Insurance Company of America, Pittsfield, MA, a wholly owned stock subsidiary of The Guardian Life Insurance Company of America, New York, NY. Product provisions and features may vary from state to state.
FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC.
8566-1-20102010-0674
Page 2
You won’t find this combination anywhere else!
• Unique product features to better meet the owner’s needs
• Highly competitive premiums
• Generous compensation & unparalleled renewals
Page 3
Business Owners Want:
• Quicker benefit payments
• More flexible use of benefits to meet business cash-flow needs
• More affordable premiums with shorter elimination periods
• An understanding of how future benefits will be determined
Page 4
Overhead Expense(Policy Form 4200)
Flexible & Consumer-Friendly
Protection
Page 5
Accelerated Benefit Endorsement
• Gets money to the owner sooner
• Accelerated Benefit Amount paid before requiring proof of covered expenses
• Amount = ½ the maximum monthly benefit
• No-cost endorsement
New & Unique!
Page 6
Supplemental Overhead Expense Benefit Rider
• Gives more protection from fluctuating expenses
• An additional monthly benefit amount
• Supplemental benefit = 1 times the maximum monthly benefit
• Can be used for total or residual at any time during the benefit period & during any extension of benefits
New & Unique!
Page 7
Supplemental Overhead Expense Benefit Rider
• Example: $50,000 monthly benefit
– Expenses spike in months 2 and 3
ExpensesGuardian
Benefit
Other Companies
Month 1: $50,000 $50,000 $50,000
Month 2: $75,000 $75,000* $50,000
Month 3: $75,000 $75,000* $50,000
Month 4: $50,000 $50,000 $50,000
*Paid using the supplemental Overhead Expense Benefit Rider.
Page 8
Professional Replacement Endorsement
• Helps the owner pay a replacement
• Considers 50% of a replacement’s salary ascovered expense
– In addition to other covered overhead expenses
• Up to the lesser of ½ the monthly maximum benefitor $10,000
– Highest limit in the industry!
• Availability subject to underwriting discretion
New Feature!
Page 9
Professional Replacement Endorsement
At Application…
• Overhead Expense Insurance Supplement
• Enter Proposed Insured’s Monthly Earned Income
– Up to the lesser of ½ the monthly maximum benefitor $10,000/mo.
Page 10
Professional Replacement Endorsement
At Time of Claim…
• Flexibility to use the benefit as reimbursement for a replacement’s salary or other expenses
Page 11
Residual Disability Benefit
• Now part of the base policy
• Requires 15% loss of gross monthly revenue
Enhanced!
Page 12
Return to Work Benefits
• Occupational Rehabilitation
• Modification & Access Benefit
New Features!
Page 13
More Client-Friendly Features
• Conversion to an individual DI policy
– Up to age 55
– Up to $3,000 monthly indemnity
– 90-day elimination period, 2-year benefit period
– Subject to certain eligibility requirements
• Legal and Accounting Fee benefit
– Up to $5,000 for fees related to disability-related termination or sale of the business
Page 14
And Like ProVider Plus…
• Future Increase Option
– “pool” approach gives more flexibility
– Total option amount = 1 times the policy’s monthly benefit
– Special option date
• Automatic Benefit Enhancement Rider
• Additional Monthly Benefit Rider
• Managerial Duties Endorsement
Page 15
And Like ProVider Plus…
• Waiver of Premium
• Waiver of Elimination Period
• No service fee on Guard-O-Matic monthlypremium payments
• Alignment of…
– Risk classes
– Age-last-birthday dating
Page 16
Maximum Monthly Issue Limits
• Up to $50,000
• With Business Reducing Term*: up to $55,000
* Not available in FL, NC, SC, VA, MT.
Page 17
Pricing: Your Competitive Edge General Dentist - $10,000 per month
Berkshire OE 4200
MassMutual BOE-01
MetLife Expense
Plus
Northwestern Mutual
RR DOE
Principal HH702
Standard Business Protector
Union Central 4403S
Male: $123.17
Female: $175.58 Male:
$201.98
Female: $321.02
Male: $123.85
Female: $230.25
Male: $237.37
Female:$537.14
Male: $143.24
Female:$204.84
Male: $177.76
Female: $218.62
Male: $148.55
Female: $228.96
With Supplemental
OE Benefit
Male: $143.67
Female: $206.83
*Monthly premiums shown are for a general dentist, generic rates, issue age 35, 30 day EP, 12 month BP, FIO rider.
MassMutual, Principal and Standard premiums include an extra cost partial/residual disability rider. MassMutual and Union Central premiums include an extra cost salary replacement rider. Comparison is based on
prevailing rates that were publicly available as of 10/09. If there are any questions about the rates, please contact a representative of that company. Refer to state-specific policy and rider forms for the full definition of all
policy provisions, benefits, limitations and exclusions.
Page 18
Pricing: Your Competitive Edge Attorney - $10,000 per month
Berkshire OE 4200
MassMutual BOE-01
MetLife Expense
Plus
Northwestern Mutual
RR DOE
Principal HH702
Standard Business Protector
Union Central 4403S
Male: $89.50
Female: $127.33 Male:
$140.20
Female: $221.82
Male: $106.54
Female: $176.06
Male: $125.06
Female:$300.17
Male: $122.77
Female:$175.65
Male: $124.30
Female: $152.45
Male: $148.55
Female: $228.96
With Supplemental
OE Benefit
Male: $104.33
Female: $149.92
*Monthly premiums shown are for an attorney, generic rates, issue age 35, 30 day EP, 12 month BP, FIO rider. MassMutual, Principal and Standard premiums include an extra cost partial/residual disability rider.
MassMutual and Union Central premiums include an extra cost salary replacement rider. Comparison is based on prevailing rates that were publicly available as of 10/09. If there are any questions about the rates, please
contact a representative of that company. Refer to state-specific policy and rider forms for the full definition of all policy provisions, benefits, limitations and exclusions.
Page 19
Disability Buy-Out(Policy Form 3200)
Easier to Explain,
Easier to Sell
Page 20
Business Valuation Formula
• Included in the contract by endorsement
• Eliminates “guesswork”
• Defines how the insured’s business interest is valued…
– at application
– at time of claim
New & Unique!
Note: The value of the business is one of the factors that determine the amount of benefit payable. See the section of the policy titled Provisions Relating to Benefits for details.
Page 21
Business Valuation Endorsement
Value of the insured’s ownership interest:
• Professional/Personal Service
– 1 X the business’ annual gross receipts X percentage of ownership interest
• Commercial
– 2 X the owner’s total compensation + owner’s share of business’ net worth
Page 22
Maximum Issue Limit
• Single Limit: $2,000,000
• Regardless of…
– Elimination period
– Funding method
• New maximum limit also available to medical anddental professionals
New & Unique!
Page 23
Return to Work Benefits
• Occupational Rehabilitation
• Modification & Access Benefit
New Features!
Page 24
Monthly Benefits & Recovery
• “Recovery” benefit now in the policy
• Monthly installment payments continue even if the insured is no longer totally disabled
• Replaces the Presumptive Permanent DisabilityBenefit Rider
Page 25
More Client-Friendly Features
• Transfer of Coverage provision
• Conversion to an individual DI policy
• Expanded installment funding options
– 12, 24, 36, 48 and 60 months
Page 26
And Like ProVider Plus…
• Additional Benefit Rider
• Waiver of Premium
• No service fee on Guard-O-Matic monthlypremium payments
• Alignment of…
– Risk classes
– Age-last-birthday dating
Page 27
Pricing: Your Competitive Edge General Dentist - $1,000,000 Lump Sum
Berkshire DBO 3200
MassMutual BSELL-00($500,000 limit)
MetLife BusinessProtector
Northwestern Mutual RR BUY
Principal HH703
Standard Business
Equity Protector
($750,000 limit)
Male $423.22
Female $606.82
Male $306.02
Female $427.46
Male $446.00
Female $514.22
Male $770.40
Female$1155.60
Male $531.13
Female$727.13
Male $326.38
Female$497.00
With FIO($100,000)
Male$427.43
Female$612.87
N/A N/A N/A Male $531.13
Female$727.13
N/A
Monthly premiums shown are for a general dentist, generic rates, best risk class, issue age 40, 360 day EP. Comparison is based on prevailing rates that were publicly available as of 10/09.
If there are any questions about the rates, please contact a representative of that company. Refer to state-specific policy and rider forms for the full definition of all policy provisions, benefits, limitations and exclusions.
Page 28
Pricing: Your Competitive Edge Attorney - $1,000,000 Lump Sum
Berkshire DBO 3200
MassMutual BSELL-00($500,000 limit)
MetLife BusinessProtector
Northwestern Mutual RR BUY
Principal HH703
Standard Business
Equity Protector
($750,000 limit)
Male $315.18
Female $451.68
Male $359.26
Female $501.82
Male $362.37
Female $418.12
Male $333.84
Female$470.80
Male $453.10
Female$620.94
Male $366.63
Female$560.88
With FIO($100,000)
Male$318.31
Female$456.17
N/A N/A N/AMale
$453.10
Female$620.94
N/A
*Monthly premiums shown are for an attorney, generic rates, best risk class, issue age 40, 360 day EP. Comparison is based on prevailing rates that were publicly available as of 10/09.
If there are any questions about the rates, please contact a representative of that company. Refer to state-specific policy and rider forms for the full definition of all policy provisions, benefits, limitations and exclusions.
Page 29
Brokers Earn More with Guardian
• Generous first-year commissions
• Unparalleled renewals*
ProVider Plus & Overhead Expense Disability Buy-Out
• Renewals immediately vested at 100% & continue beyond the 10th year.
FYC 50% - 60%
Years 2–10 Up to 17.5%
Years 11+ Up to 14.5%
FYC 55%
Year 2 Up to 25%
Years 3+ Up to 20%
*Most other insurers pay between 0 – 5%.
Page 30
Flexibility Your Clients Need– From a Trusted Provider
• Berkshire: a financially sound & stable company
• Prudent risk management
• Rated A++ (Superior) by A. M. Best Company
Page 31
Marketing Support
• Disability Protection Products Producer Guide
• Consumer materials:
– Product brochures
– Flyers, pre-approach letters
– HTML e-mails
Page 32
Marketing Support
• Updated Competitive Snapshot Comparisons
• Competitive Edge Overview
• Support materials
– Annotated Sample Policies
– Annotated Tax Return
– Sample Disability Buy-Sell Agreements
Page 33
Client-Friendly Illustrations
Business ProVider Disability Insurance Products for Business
Overhead Expense & Disability Buy-OutA New Standard for Business Protection
Disability income products underwritten and issued by Berkshire Life Insurance Company of America, Pittsfield, MA, a wholly owned stock subsidiary of The Guardian Life Insurance Company of America, New York, NY. Product provisions and features may vary from state to state.
FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC.8566-1-2010
