disability income choice portfolio that works for me
TRANSCRIPT
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
Interview, Long Form Paramed, Blood and Urine,
EKG2
Interview, Long Form Paramed, Blood and Urine,
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
Disability Income Choice Portfolio
Which One Works
for Your Client?
Short-Term Accident Only
• Target Market:– Ages 25-55– Blue/Gray Collar– Household Income: $15,000 – $50,000– Self-employed– Singles
Short-Term Accident Only
• 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
Short-Term Accident Only
• 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
Short-Term Accident & Sickness
• Issue Ages: 18 – 61
• Elimination Periods: 14, 30, 60 or 90 days
• Benefit Periods: 3, 6, 12 or 24 months
• Maximum Monthly Benefit Amount: $5,000
Short-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
Long-Term Accident and Sickness
• Target Market:– Ages 35 – 55– White Collar/Professional– Household income: $50,000+– Mature Families
Long-Term Accident & Sickness
• Issue Ages: 18 – 61
• Elimination Periods: 60, 90, 180 or 365 days
• 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
Disability Income Choice Portfolio
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
Total Disability Benefits
• 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
Total Disability Benefits
• 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:
• Be receiving regular medical care
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
• Be receiving regular medical care
• 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
• Be receiving regular medical care
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
Disability Income Choice Portfolio
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
Disability Income Choice Portfolio
Business Operating Expense
Business Operating Expense (BOE)
• Target Market:– Small Business Owners– Self-Employed– White Collar– Professional– Average Salary: $35,000+
Business Operating Expense (BOE)
• 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
Business Operating Expense (BOE)
• 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
Disability Income Choice Portfolio
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
Short-Term Accident Only (Off-the-Job)
Short-Term Accident/ Sickness
(Off-the-Job)
Long-Term Accident/ Sickness
Business Operating Expense (BOE)
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 $5,000 and up:
Full underwriting
Product Summary
Short-Term Accident Only (Off-the-Job)
Short-Term Accident/ Sickness
(Off-the-Job)
Long-Term Accident/Sickness
Business Operating Expense (BOE)
Base Plan Benefits
Total/Partial Disability Survivor Benefit Recurrent
Disability Presumptive
Total Disability Waiver of
Premium
Total/Partial Disability
Survivor Benefit Terminal Illness
Benefit Recurrent
Disability Presumptive
Total Disability Waiver of
Premium Transplant Donor
Benefit Rehabilitation
Benefit
Total Disability Proportionate
Disability Survivor Benefit Terminal Illness
Benefit Recurrent
Disability Presumptive
Total Disability Waiver of
Premium Transplant Donor
Benefit Rehabilitation
Benefit
Total Loss of Time Benefit
Recurrent Total Loss of Time Benefit
Waiver of Premium
Product Summary
Short-Term Accident Only (Off-the-Job)
Short-Term Accident/ Sickness
(Off-the-Job)
Long-Term Accident/Sickness
Business Operating Expense
(BOE)
Optional Benefits
Hospital Accident Confinement
Critical Illness
Hospital Confinement
Return of Premium
SIS Future
Insurability Option
Extended Own Occ
Extended Proportionate
COLA Critical Illness Hospital
Confinement Return of
Premium
N/A
Disability Income Choice Portfolio
Rates/Competitiveness
Rate Comparison – Blue Collar Occupations2-Year Benefit Period/30-Day Elim Period
DI Choice (STD) Illinois Mutual UNUMProvident Assurity MetLifePolicy Form: D82 GR21 601 D100 IDI2000-P/GRBase Benefit: 1,500$ 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
Disability Income Choice Portfolio
Scenarios
Short-Term Accident Only
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
Disability Income Choice Portfolio
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.
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.
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
Disability Income Choice Portfolio
Winflex
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Winflex
Disability Income Choice Portfolio
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