Download ppt - Disability Income Choice Portfolio That Works for Me

Disability Income Choice PortfolioThat Works for Me

Agenda

• What’s New• Why Sell Our DI Products?• Which One Works for Your Client?• Benefits & Definitions• Product Summary• Rates/Competitiveness• Scenarios• Marketing• Winflex

What’s New

• Choice of 4 product offerings:– Short-Term Accident Only – Short-Term Accident/Sickness– Long-Term Accident/Sickness – Business Operating Expense

• One application for all products

Disability Income Choice Portfolio

Why Sell Our Products?

Product Design

• Portfolio of products fits almost any DI sales scenario• Flexible benefit options to tailor coverage to your

clients’ needs• Single application for all products, including BOE• To Age 67 benefit period to support longer working

lifetimes• Improved price competitiveness for long benefit

periods and for females• No SIS (base coverage only) on short-term versions

Additional Benefits

• Hospital confinement benefits rider up to $500 (X2 ICU)

• Critical Illness Benefits rider up to $25,000

• Own Occupation Protection for Duration of Benefit Period

• Preferential Rates:15% premium discounts for members of qualifying association group and self-employed individuals

Underwriting

• Accident Only (Off-The-Job)– Simplified application process and 48-hour Express

Underwriting – benefits up to $5,000

• Short-term Accident/Sickness (Off-The-Job)– 48-hour Express Underwriting for benefits up to $3,000– Simplified Underwriting: $3,100 to $5,000

• Long-term Accident/Sickness (24-Hour)– Full underwriting

Underwriting

• Updated Health Manual– Elimination of one-year wait for controlled high blood

pressure

• Expansion/Reformatting of Occupation Manual– Six occupation classes instead of only four, and 170

new occupations included

• Lower income requirement for self-employed discount

Medical Underwriting

Base Monthly Benefit Amount

Short-Term Accident Only

Short-Term Accident/Sickness

2 Year and 5-Year Benefit Period

10-Year and To-Age-67 Benefit

PeriodBusiness Operating

Expense

300 - 3,000Express

Underwriting1 InterviewExpress

Underwriting1

3,100 - 5,000 InterviewInterview, Physical Data, Blood, and

Urine

Simplified Underwriting

5,100 - 8,000Interview, Physical Data, Blood, and

Urine

Interview, Long Form Paramed, Blood and Urine

Interview, Physical Data, Blood, and

Urine

8,100 and Above

Interview, Long Form Paramed, Blood and Urine,

EKG2


EKG2


EKG2

1 Underwriting decisions within 48 hours of initial underwriting review provided the following conditions are met: Applicant is in occupation class 6A, 5A, 4A, 3A, or 2A For Accident Only coverage: Applicant is age 55 or younger and medically standard For Accident/Sickness coverage: Applicant is non-tobacco, age 45 or younger, and medically standard No adverse information from the Medical Information Bureau All application questions have been clearly and completely answered and required forms and financial documents have been submitted with the application2 Age 45 and over only

Express

Underwriting1

Long-Term Plan

Interview


Which One Works

for Your Client?


• Target Market:– Ages 25-55– Blue/Gray Collar– Household Income: $15,000 – $50,000– Self-employed– Singles


• Issue Ages: 18 – 61

• Elimination Periods: 14, 30, 60 or 90 days

• Benefit Periods: 3, 6, 12 and 24 months

• Maximum Monthly Benefit Amount: $5,000

• Payroll Deduction Available


• Renewability– Guaranteed renewable to age 67– Preferential Rates– 15% Discount*

• Association Group• Self-employed• No Comp Offset

*may vary by state

Short-Term Accident & Sickness

• Target Market:– Ages 25 – 55– Blue/Gray Collar– Household Income: $25,000 – $75,000– Self-employed– Families




• Benefit Periods: 3, 6, 12 or 24 months

• Maximum Monthly Benefit Amount: $5,000


• Renewability– Guaranteed renewable to age 67– May continue to age 75 if Insured is working full-time

– Preferential Rates– 15% Discount*

• Association Group• Self-employed

*may vary by state

Long-Term Accident and Sickness

• Target Market:– Ages 35 – 55– White Collar/Professional– Household income: $50,000+– Mature Families

Long-Term Accident & Sickness



• Benefit Periods: 2, 5, 10 years and to age 67

• Maximum Monthly Benefit Amount: $10,000 ($12,000 if SIS rider is added)

Long-Term Accident & Sickness

• Renewability– Guaranteed renewable to age 67– May continue to age 75 if Insured is working full-time

Preferential Rates– 15% Discount*

• Association Group• Self-employed

*may vary by state


Policy Base Benefits

Total Disability Benefits

• During and after elimination period, due to an injury that is not covered by workers compensation, Insured is:

– Unable to perform duties of regular occupation– Not engaged in any occupation for wage or profit– Receiving regular medical care

STAOx STAS LTASShort-term Accident Only

Short-term Accident & Sickness

Long-term Accident & Sickness


• During and after elimination period, due to an injury or sickness that is not covered by workers compensation, Insured is:

– Unable to perform duties of regular occupation– Not engaged in any occupation for wage or profit– Receiving regular medical care

STAO x STAS LTAS


• During the elimination period and during the first 24 months following the elimination period, due to injury or sickness, the Insured is:– Unable to perform duties of regular occupation– Not engaged in any occupation for wage or profit– Receiving regular medical care

• After the first 24 months following the elimination period, due to sickness or injury, the Insured is:– Unable to perform duties of any occupation because

of education, training or experience– Receiving regular medical care

STAO xSTAS LTAS

Partial Disability Benefit

• If an injury that is not covered by workers compensation prevents the Insured from performing duties of regular occupation for more than 50 percent of the time, the Insured must:

• Be receiving regular medical care

STAOx STAS LTAS

Partial Disability Benefit

• If an injury or sickness that is not covered by workers compensation prevents the Insured from performing duties of regular occupation for more than 50 percent of the time, the Insured must:


STAO x STAS LTAS

Proportionate Disability Benefit

STAO xSTAS LTAS

• During the elimination period and during first 24 months following the elimination period, due to injury or sickness, the Insured must:

• Be unable to perform duties of regular occupation

• Have a loss of monthly income at least 20 percent of prior monthly income


• After the first 24 months following the elimination period, due to sickness or injury, the Insured must:

• Be unable to perform duties of any occupation because of education, training or experience

• Have a loss of monthly income at least 20 percent of prior monthly income


Survivor Benefit & Waiver of Premium

Survivor Benefit• Pays beneficiaries lump sum equal to three times total

disability monthly benefit

Waiver of Premium• Waives premiums on policy and riders• Insured must be disabled for 90 days• Refunds any premiums paid during 90-day period

STAOx x xSTAS LTAS

Recurrent Disability

• If a related disability occurs within six months of return to full-time employment, or if an unrelated disability occurs within 30 days of return to full-time employment:– It is considered to be a recurrent disability. – A new elimination period will not need to be

satisfied– The same benefit period will continue

STAOx x xSTAS LTAS

Presumptive Total Disability

• The Insured is presumed to be totally and permanently disabled if:– An injury results in complete and irrecoverable loss of:

• Hearing, speech, sight, or use of both hands, both feet or one hand and one foot

• Total disability benefits paid for full length of benefit period • Elimination period will be waived

STAOx STAS LTAS

Presumptive Total Disability

• The Insured is presumed to be totally and permanently disabled if:– Injury or sickness results in complete and

irrecoverable loss of:• Hearing, speech, sight, or use of both hands, both

feet or one hand and one foot

• Total disability benefits paid for full length of benefit period • Elimination period will be waived

STAO x xSTAS LTAS

Terminal Illness Benefit

• The Insured has the option to accelerate up to 12

months of disability benefits when diagnosed with a terminal illness

• The policy terminates after this benefit is paid

STAO x xSTAS LTAS

Transplant Donor Benefits

• Benefits will be paid on the same basis as any other sickness if:

– The Insured becomes disabled as the result of a transplant of part of his or her body to the body of another person

STAO x xSTAS LTAS

Rehabilitation Benefit

If the Insured is disabled and receiving disability benefits, he or she may be eligible to receive

vocational rehabilitation services at our expense.

STAO x xSTAS LTAS


Optional Riders

Hospital Confinement Accident Indemnity Benefits Rider

• Pays DRB for each day the Insured is confined to a hospital due to an injury:– $125– $250– $350 or – $500

• 2 X DRB for ICU• Benefits payable even if not disabled

STAOx STAS LTAS

Hospital Confinement Indemnity Benefits Rider

• Pays DRB for each day the Insured is confined to a hospital due to an injury or sickness (after the first day):– $125– $250– $350 or – $500

• 2 X DRB for ICU• Benefits payable even if not disabled

STAO x xSTAS LTAS

Critical Illness Benefits Rider

• When diagnosed with certain specific diseases, the Insured will be paid a

lump sum of:– $5,000– $10,000– $15,000 or– $25,000

• The Insured does not have to be disabled to get this benefit

STAO x xSTAS LTAS

Critical Illness Insured Conditions

• Alzheimer’s Disease• Blindness• Deafness• Heart Attack• Life-Threatening Cancer• Major Organ Transplant• Paralysis• Renal Failure• Stroke

STAO x xSTAS LTAS

Return of Premium Benefit Rider

• Maximum issue age: 57• Pays back either 50 or 80 percent of premiums minus

claims paid*:– After 10 years– Does not include premiums for Critical Illness or Hospital

Confinement riders• If the Insured dies or attains age 67 during a 10-year period, the

company will pay a prorated share of the return of premium benefits

*Subject to state approval

STAO x xSTAS LTAS

Social Insurance Supplement Benefits Rider

• Pays a monthly benefit that is reduced dollar-for-dollar for other forms of social insurance such as– Social Security– worker's compensation, or any employer’s liability or occupational disease law– civil service and federal employee programs, including state-sponsored

disability benefits– the Railroad Retirement Act.

STAO xSTAS LTAS

Future Insurability Option Rider

• Maximum issue age: 51• Increases the Insured’s base monthly benefit as his or her income increases,

regardless of changes in health status. • Maximum increase: 2X base benefit• Base monthly benefit may not exceed $10,000 • Rider premium decreases upon exercise of benefit• Can be exercised once a year• Can increase up to 25% of original base each time

STAO xSTAS LTAS

Extended Own Occupation Disability Definition Amendment Rider

Extends the Insured’s own occupation disability protection past 24 months, to the duration of the benefit period.

STAO xSTAS LTAS

Extended Proportionate Disability Benefits Rider

Extends the maximum period for which proportionate disability benefits are payable past 24 months, to the duration of the benefit period.

STAO xSTAS LTAS

Cost of Living Adjustment Rider

• Increases the Insured’s monthly benefit while disabled, so his or her benefits are not degraded by inflation

• Monthly benefit will increase annually by the lesser of the percentage change in the CPI-U, or 5%

STAO xSTAS LTAS


Business Operating Expense

Business Operating Expense (BOE)

• Target Market:– Small Business Owners– Self-Employed– White Collar– Professional– Average Salary: $35,000+


• Issue Ages: 20 – 59• Elimination Periods: 30, 60, 90, 180 or 365 days• Benefit Periods: 12 and 18 months. Benefit

periods may be restricted for some issue ages and occupation classes

• Maximum Monthly Benefit Amount: $15,000 This amount may vary by income qualification and occupational classification


• Renewability– Guaranteed renewable to age 65

Total Loss of Time Benefit

• Benefits incurred during total loss of time will be paid if:- Insured is completely unable to engage in his or her

occupation - Is not gainfully employed in another occupation

Recurrent Total Loss of Time

• If further loss of time results from injury or sickness for which benefits have already been paid:– The maximum operating expense benefit and

deductible period will be restored after the Insured returns to full-time work for a period of six consecutive months

Waiver of Premium

• Waives premium after total loss of time benefits have been paid continuously for 90 days


Product Summary

Product Summary

Short-Term Accident Only (Off-the-Job)

Short-Term Accident/ Sickness

(Off-the-Job)

Long-Term Accident/ Sickness

Business Operating

Expense (BOE)

Target Market Ages 25-55 Blue/Gray

Collar Household

Income: $15,000-$50,000

Self-employed Singles

Ages 25-55 Blue/Gray

Collar Household

Income: $25,000- $75,000

Self-employed Young Families

Ages 35-55 White Collar Professional Household

Income: $50,000+

Mature Families

Small Business Owners

Self-Employed White Collar Professional Average Salary:

$35,000+

Maximum Benefit

$5,000 $10,000 ($12,000 w/SIS)

$15,000

Benefit Period

3 / 6 / 12 / 24 Months 2 / 5 / 10 Years, to age 67

12 or 18 Months

Positioning Income Continuation Lifestyle

Protection Convenience

Sale Mortgage

Protection

Income Continuation Lifestyle Protection Mortgage Protection

Business Overhead Protection

Product Summary



(Off-the-Job)

Long-Term Accident/ Sickness


Premium Structure

Level Until Age 67

Unisex Age-Banded

Level Until Age 67 – then Annually Step-Rated

Sex-Distinct

Level Until Age 65 Age Banded Gender Rated

Renewability Guaranteed Renewable to

Age 67

Guaranteed Renewable to Age 67 – then Conditionally Renewable to Age 75

Guaranteed Renewable to Age

65 Own

Occupation Period

2 Years 2 Years, or for Duration of

Benefit Period via Rider

N/A

Issue Ages 18-61 20-59 Elimination

Periods (Accident/ Sickness)

14, 30, 60, 90

Days

60, 90, 180, 365

Days

30, 60, 90, 180, 365

Days

Underwriting Express Issue Express Issue up to $3,000

$3,100-$5,000: Simplified Issue

Simplified Issue up to $3,000

$3,100 and up: Full Underwriting

Express Issue up to $3,000

$3,100-$5,000: Simplified Issue $5,000 and up:

Full underwriting

Product Summary



(Off-the-Job)

Long-Term Accident/Sickness


Base Plan Benefits

Total/Partial Disability Survivor Benefit Recurrent

Disability Presumptive

Total Disability Waiver of

Premium

Total/Partial Disability

Survivor Benefit Terminal Illness

Benefit Recurrent



Premium Transplant Donor

Benefit Rehabilitation

Benefit

Total Disability Proportionate

Disability Survivor Benefit Terminal Illness

Benefit Recurrent



Premium Transplant Donor

Benefit Rehabilitation

Benefit

Total Loss of Time Benefit

Recurrent Total Loss of Time Benefit

Waiver of Premium

Product Summary



(Off-the-Job)

Long-Term Accident/Sickness

Business Operating Expense

(BOE)

Optional Benefits

Hospital Accident Confinement

Critical Illness

Hospital Confinement

Return of Premium

SIS Future

Insurability Option

Extended Own Occ

Extended Proportionate

COLA Critical Illness Hospital

Confinement Return of

Premium

N/A


Rates/Competitiveness

Rate Comparison – Blue Collar Occupations2-Year Benefit Period/30-Day Elim Period

DI Choice (STD) Illinois Mutual UNUMProvident Assurity MetLifePolicy Form: D82 GR21 601 D100 IDI2000-P/GRBase Benefit: 1,500$ 750$ 750$ 750$ 750$ SIS Benefit: -$ 750$ 750$ 750$ 750$

Disability Definition: 2 Yr Own Occ 2 Yr Own Occ 2 Yr Own Occ 2 Yr Own Occ 2 Yr Own OccOccupation class: 2 2 E1 2A 1AResidual Benefits?: Yes Yes Yes Yes NoNon-Tobacco rates?: Yes Yes Yes Yes Yes

25 male 470 387 704 657 619 35 male 636 510 831 871 776 45 male 945 713 1,061 1,273 1,082 55 male 1,459 1,311 1,713 1,961 1,559

25 female 705 459 1,018 1,067 690 35 female 891 678 1,274 1,529 961 45 female 1,134 804 1,475 1,876 1,226 55 female 1,459 1,297 1,964 2,283 1,472

Rate Comparison – White Collar OccupationsT65/T67 Benefit Period, 90-Day Elim Period

DI Choice (LTD) Illinois Mutual UNUMProvident MetLifePolicy Form: D81 GR21 601 IDI2000-P/GRBase Benefit: 2,800$ 2,800$ 2,800$ 2,800$ SIS Benefit: 1,300$ 1,300$ 1,300$ 1,300$

Benefit Period (To Age): 67 65 67 65Disability Definition: 2 Yr Own Occ 5 Yr Own Occ 2 Yr Own Occ MBP Own OccOccupation class: 6 5 A1 6AResidual Benefits?: Yes Yes Yes YesNon-Tobacco rates?: Yes Yes Yes Yes

25 male 748 883 719 646 35 male 1,126 1,192 1,045 1,024 45 male 1,802 1,782 1,715 1,797 55 male 2,633 2,568 2,714 2,525

25 female 1,098 1,283 1,087 936 35 female 1,556 1,761 1,524 1,543 45 female 2,152 2,581 2,137 2,370 55 female 2,633 2,788 2,913 2,766


Scenarios


Prospect ProfileJohn: 28 years oldOccupation: Food service supervisorAnnual Salary: $30,000

Situation: John had just begun his career, and hadn’t given much thought to disability insurance -- Until Bob, one of his co-workers had an accident that left him unable to work for a year. Bob was smart enough to plan ahead – He had disability insurance and was able to make it through those months in good financial shape, thanks to benefit checks he received from Mutual of Omaha.

Solution: Offer John the Short-Term Accident Only policy 2-year benefit period; 90-day elimination period $1,500 base benefit with Hospital Confinement rider

Short-Term Accident & SicknessProspect ProfileBob and Mary: 30 years oldBob’s Occupation: Factory SupervisorBob’s Annual Salary: $32,000

Situation: Bob and Mary had just bought their first house. Mary is astay-at-home Mom. If anything happened to Bob and he couldn’t work for awhile, the could have serious financial problems - They could evenlose the house.They decided to look into a disability insurance policy that would cover Bob if he does get sick or injured and can’t work. In Mary’s words, “If we’re responsible enough to buy a house, we’re responsible enough to protect it.”

Solution: Offer Bob the Short-Term Accident & Sickness policy 2-year benefit period; 90-day elimination period $1,500 base benefit with CI and Return of Premium riders

Long-Term Accident & SicknessProspect ProfileMark: 45 years oldOccupation: AccountantAnnual Salary: $62,000

Mark has worked hard to get where he is. He has a successful and satisfying career that lets him enjoy time with his family as well. As the primary breadwinner Mark’s income is critical to his lifestyle. He wonders, if a disabling illness or injury kept him from working, what would he do?

Mark wants to make sure his assets are protected and his family will be provided for if he’s too sick or hurt to work.

Solution: Offer Mark the Long-Term Accident & Sickness policy 2-year benefit period; 90-day elimination period $2,800 base benefit with CI and Return of Premium riders

Business Operating ExpenseProspect ProfileSandra: 42 years oldOccupation: Business ownerAnnual Salary: $50,000+

Sandra started with just two employees when she opened her consulting firm six years ago. Now she has 10. Sandra realizes those people depend on her for their livelihood. She wonders what would happen to the business – and to her employees and their families – if she were temporarily disabled. Because everything Sandra has worked for is tied up in her business, she wants to protect it, for herself, her family and her employees.

Solution: Offer Sandra the Business Operating Expense policy18-Month Benefit Period90-day Elimination Period


Marketing Materials

Consumer Marketing Materials

Marketing Piece Form Number Short-Term Accident Only Highlight Sheet MC33599_0807

Short-Term Accident and Sickness Highlight Sheet

MC33600_0308

Long-Term Accident and Sickness Highlight Sheet

MC33601_0508

Business Operating Expense Highlight Sheet

MC33592_0807

Point-of-Sale Brochure MC33593_1207 DI Choice Tri-fold MC33597_0308

Consumer Need Brochure MC33832 Self Mailer with Reply Card MRC33594_1207

Pre-approach Letter AFN40605_0607 POD Kit (application, highlight sheet, outline

of coverage) MC33645_ST_1207

(state abbr.)

Please consult Sales Professional Access (www.mutualofomaha.com/broker) for state specific forms.

http://www.mutualofomaha.com/broker

Producer Marketing Materials

Marketing Piece Form Number Product and Underwriting Guide M25981_0408

Occ Class Manual M26043_0408 DI Choice Quick Reference Guide M26117_0208

Short-Term Accident Only Rate Guide M26042_1007 Short Term Accident & Sickness Rate Guide M26520

Mutual of Omaha DI Contact Card M26519 DI Choice Portfolio Postcard MC33598 DI Training Website Postcard MC33646

Money Back DI Postcard M26453 DI Commission Stuffer M26507

Please consult Sales Professional Access (www.mutualofomaha.com/broker) for state specific forms.

http://www.mutualofomaha.com/broker

Marketing Materials

• Marketing Materials can be found on SPA• Print on Demand POD Packet (similar to LTC and GUL)

• Application and applicable forms• Outline of Coverage• Product Highlight Sheets

• Product and Underwriting Guide• General U/W Guidelines• Medical U/W Guidelines

• Build Chart• Financial U/W Guidelines

• Income Qualification Table• Occupation Classifications Manual• Product Information• Business Submission Procedures


Winflex

Winflex

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Winflex


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