for producer use only. not for use with consumers. this presentation is not for use in california....

For producer use only. Not for use with consumers. This presentation is not for use in California.

The Power of ChoiceAn Introduction to The Protector+SM


Crossroads – An ability to choose directionWhich way will you go?Which option will you choose?

©1999-2005 StanCorp Financial Group, Inc. 12676 (8/05)


Base Policy – What has stayed the same?

“PRESUMPTIVE TOTAL DISABILITY – Your total and permanent loss, because of Your Injury or Sickness, of one of the following:

1. Speech;

2. Hearing in both ears, not restorable by hearing aids;

3. Sight in both eyes (see below);

4. Use of both hands;

5. Use of both feet; or

6. Use of one hand and one foot.

Total and permanent loss of sight in both eyes means that both eyes must measure at or below 20/200, after reasonable efforts are made to correct their vision, using the most advanced medically acceptable procedures and devices available.”

The Protector Policy Definition




“PRESUMPTIVE TOTAL DISABILITY – Your total and permanent loss, because of Your Injury or Sickness, of one of the following:

1. Speech;

2. Hearing in both ears, not restorable by hearing aids;

3. Sight in both eyes (see below);

4. Use of both hands;

5. Use of both feet; or

6. Use of one hand and one foot.

Total and permanent loss of sight in both eyes means: Both eyes must measure at or below 20/200, after reasonable efforts are made to correct their vision, using the most advanced medically acceptable procedures and devices available.”

The Protector+ Policy Definition




“TOTAL DISABILITY/TOTALLY DISABLED – Because of Your Injury or Sickness:

1. You are unable to perform the substantial and material duties of Your Regular Occupation; and

2. You are not engaged in any other gainful occupation; and

3. You are under the regular care of a Physician appropriate for Your Injury or Sickness. This Physician’s care requirement will be waived when We receive written proof, satisfactory to Us, that further care would be of no benefit to You.”





“TOTAL DISABILITY/TOTALLY DISABLED – Because of Your Injury or Sickness:

1. You are unable to perform the substantial and material duties of Your Regular Occupation; and

2. You are not engaged in any other gainful occupation; and

3. You are under the regular care of a Physician appropriate for Your Injury or Sickness. This Physician’s care requirement

will be waived when We receive written proof, satisfactory to Us, that further care would be of no benefit to You.”





“RESIDUAL DISABILITY/RESIDUALLY DISABLED – Residual Disability means You are not Totally Disabled, but because of Your Injury or Sickness:

1. Your Monthly Earnings are reduced by 20% or more of Your Indexed Prior Monthly Earnings; and

2. You are under the regular care of a Physician appropriate for Your Injury or Sickness; and

3. You are able:

a. To do some, but not all, of the substantial and material duties of Your Regular Occupation; or

b. To do all of the substantial and material duties of Your Regular Occupation, but not for as long a time or as effectively as You did immediately prior to Your Injury or Sickness.”




Base Policy – What has improved?

“REHABILITATION BENEFIT – While receiving the Benefit For Total Disability, You may join a vocational rehabilitation program. We will continue to pay the Benefit For Total Disability while:

1. You actively participate in a rehabilitation program approved by Us; and

2. You continue to be Totally Disabled.

While You participate in a program under this section, We will pay the Benefit For Total Disability for the lesser of:

1. 36 months; or

2. The number of months remaining in the Maximum Benefit Period.

If We approve the program, We will also pay any reasonable costs for the program not covered by any other plans, policies or programs.”




“REHABILITATION BENEFIT – While Disability Benefits are being paid, either You or We may propose a Rehabilitation Program. If the Program is approved by Us and accepted by You, We will pay a Rehabilitation Benefit. This benefit will pay:

1. The reasonable costs of a Rehabilitation Program not otherwise covered by any other plan, policy or program; and

2. The difference, if any, between:

a. The benefit You would be eligible for if You were Totally Disabled; and

b. The Disability Benefit for which You are eligible;

for up to 36 months according to the terms of the Program. In no case will We pay any Rehabilitation Benefit beyond the end of the Maximum Benefit Period. Payment of this benefit will be in addition to any other payment that may be due under the policy.”

Base Policy – What has improved?




Base Policy – What has changed?

• Regular Occupation– definition expanded to include what happens when insureds

retire during their working years

• Exclusion for Self-Inflicted Injury– previously fell under the definition of injury

– now included in the exclusion list



What about?

• Guaranteed Renewable Chassis: three year rate guarantee

• Residual rider for all occupation classes:no prior total disability required

• Waiver of premium, transplant, cosmetic surgery benefit, survivor benefit: built in

• FPO pool at $5,000

• Same

• Same

• Same

• Same



Optional Riders – What has changed?

• Noncancelable Policy Rider (Noncan)– expanded to include occupation classes A and B

• Residual Disability Rider (Residual)– lump sum recovery period expanded from

four to six months

• Indexed Cost of Living Rider (ICOL)– choice between 3% or 6%

– both percentages have a “catch up” provision

– ability to purchase benefits at recovery



Optional Riders – What has changed?

• Own Occupation Benefit Rider (Own Occ)– Mental Disorder/Substance Abuse limitation tied

to the purchase of this rider

• Mental Disorder/Substance Abuse Limitation– no longer part of the base policy

– only added with purchase of Own Occ rider or atunderwriting discretion



New Riders

• Catastrophic Disability Benefit Rider (Cat)– catastrophic benefits paid in addition to maximum monthly

disability income benefits, triggered by inability to do two of six activities of daily living (ADL) or severe cognitive impairment

• ADLs include: bathing, continence, dressing, eating, toileting and transferring (moving into and out of a bed, chair or wheelchair)

– maximum limits, the lesser of • $8,000, or• 3x the basic monthly benefit, or • the sum of Cat and all DI (group and individual) cannot exceed

100% earned income


Additional FeaturesYour client has the choice of coverage from one carrier


How?



Which to choose?

Noncan

Own Occ with two-year Mental Disorder/Substance

Abuse Limitation

ICOL – 3%

Guaranteed Renewable

Base definition for Total Disability without two year limitation for Mental Disorder/Substance Abuse

ICOL – 6%

OR

The Power of Choice

OR

OR



New Occupation Classes for Physicians

• 4P

• 3P

in addition to previous occ classes:

5A

4A

3A

2A

A

B

Issue Limits

$15,000 issue $20,000 participation with group

$10,000 issue $15,000 participation with group

and individual

$15,000

$15,000

$10,000

$10,000

$8,000

$8,000



How are discounts applied?

• 10% for Associations (now Gender Neutral)

• 10% for Multi-Life (three or more lives)

• 15% for Voluntary Guaranteed Standard Issue (VGSI)

• 20% for Mandatory Guaranteed Standard Issue (MGSI)



2000 Protector Premium Rates by Occupation Class – A Baseline Representation*

5A 4A 3A 2A AB

* This is a hypothetical depiction only and does not reflect actual revenues



2000 Protector – Baseline vs. Market Perception*

5A 4A 3A 2A AB




5A 4A 3A 2A AB

2000 Protector Baseline vs. Market Perception vs. 2005 Protector+ Premium Rates*

4P

3P




Premiums: Protector vs. Protector+Male $3,000 base 90 66/67 noncan, own occ, residual

Age 35 Age 45 Age 55

5A $946/$859 $1,587/$1,305 $2,347/$1,680




4A $1,021/$1,137 $1,722/$1,780 $2,559/$2,320






4P $1,021/$1,369 $1,722/$2,141 $2,559/$2,676





3A $1,150/$1,223 $1,988/$1,963 $3,009/$2,662





3P $1,150/$1,596 $1,988/$2,564 $3,009/$3,349





5A $946/$859 $1,587/$1,305 $2,347/$1,680

no own occ $745 $1,093 $1,463





4A $1,021/$1,137 $1,722/$1,780 $2,559/$2,320

no own occ $984 $1,489 $2,018





4P $1,021/$1,369 $1,722/$2,141 $2,559/$2,676

no own occ $1,184 $1,790 $2,328





3A $1,150/$1,223 $1,988/$1,963 $3,009/$2,662

no own occ $1,058 $1,641 $2,315





3P $1,150/$1,596 $1,988/$2,564 $3,009/$3,349

no own occ $1,379 $2,142 $2,911



Premiums: Protector vs. Protector+Male $3,000 base 90 66/67 noncan, residual


2A $1,806/$1,710 $2,936/$2,583 $4,119/$3,416





A $2,174/$2,401 $3,407/$3,381 $4,935/$4,442



Premiums: Protector vs. Protector+Male $3,000 base 90 5-year BP noncan, residual


B $1,583/$1,676 $2,442/$2,415 $5,498/$3,977





5A $946/$859 $1,587/$1,305 $2,347/$1,680

no own occ $745 $1,093 $1,463

no noncan $515 $708 $930





4A $1,021/$1,137 $1,722/$1,780 $2,559/$2,320

no own occ $984 $1,489 $2,018

no noncan $673 $954 $1,272





4P $1,021/$1,369 $1,722/$2,141 $2,559/$2,676

no own occ $1,184 $1,790 $2,328

no noncan $806 $1,144 $1,465





3A $1,150/$1,223 $1,988/$1,963 $3,009/$2,662

no own occ $1,058 $1,641 $2,315

no noncan $720 $1,049 $1,451





3P $1,150/$1,596 $1,988/$2,564 $3,009/$3,349

no own occ $1,319 $2,142 $2,911

no noncan $934 $1,364 $1,820





2A $1,806/$1,710 $2,936/$2,583 $4,119/$3,416

no noncan $1,155 $1,642 $2,134





A $2,174/$2,401 $3,407/$3,381 $4,935/$4,442

no noncan $1,617 $2,145 $2,769



Premiums: Protector vs. Protector+Male $3,000 base 90 5-year BP noncan, residual


B $1,583/$1,676 $2,442/$2,415 $5,498/$3,977

no noncan $1,132 $1,536 $2,481



Premiums: Protector vs. Protector+Female $3,000 base 90 66/67 noncan, own occ, residual


5A $1,510/$1,447 $2,188/$1,993 $2,719/$2,354





4A $1,656/$1,981 $2,392/$2,772 $2,972/$3,273





4P $1,656/$2,538 $2,392/$3,430 $2,972/$3,840





3A $1,906/$2,275 $2,793/$3,211 $3,510/$3,836





3P $1,906/$2,963 $2,793/$4,006 $3,510/$4,540





5A $1,510/$1,447 $2,188/$1,993 $2,719/$2,354

no own occ $1,220 $1,636 $2,021





4A $1,656/$1,981 $2,392/$2,772 $2,972/$3,273

no own occ $1,669 $2,272 $2,808





4P $1,656/$2,538 $2,392/$3,430 $2,972/$3,840

no own occ $2,135 $2,811 $3,293





3A $1,906/$2,275 $2,793/$3,211 $3,510/$4,836

no own occ $1,915 $2,631 $3,290





3P $1,906/$2,963 $2,793/$4,006 $3,510/$4,540

no own occ $2,492 $3,281 $3,893



Premiums: Protector vs. Protector+Female $3,000 base 90 66/67 noncan, residual


2A $2,699/$2,375 $3,704/$3,149 $4,427/$3,498





A $2,918/$3,996 $4,074/$4,576 $5,141/$4,298



Premiums: Protector vs. Protector+Female $3,000 base 90 5-year BP noncan, residual


B $2,091/$2,305 $2,912/$3,067 $5,820/$3,913





5A $1,510/$1,447 $2,188/$1,993 $2,719/$2,354

no own occ $1,220 $1,636 $2,021

no noncan $787 $1,029 $1,268





4A $1,656/$1,981 $2,392/$2,772 $2,972/$3,273

no own occ $1,669 $2,272 $2,808

no noncan $1,067 $1,420 $1,749





4P $1,656/$2,538 $2,392/$3,430 $2,972/$3,840

no own occ $2,135 $2,811 $3,293

no noncan $1,361 $1,753 $2,048





3A $1,906/$2,275 $2,793/$3,211 $3,510/$3,836

no own occ $1,915 $2,631 $3,290

no noncan $1,217 $1,637 $2,037





3P $1,906/$2,963 $2,793/$4,006 $3,510/$4,540

no own occ $2,492 $3,281 $3,893

no noncan $1,579 $2,038 $2,408





2A $2,699/$2,375 $3,704/$3,149 $4,427/$3,498

no noncan $1,505 $1,956 $2,165





A $2,918/$3,996 $4,074/$4,576 $5,141/$4,298

no noncan $2,523 $2,836 $2,657





B $2,091/$2,305 $2,912/$3,067 $5,820/$3,913

no noncan $1,461 $1,906 $2,420





5A $1,510/$1,447 $2,188/$1,993 $2,719/$2,354

no own occ $1,220 $1,636 $2,021

no noncan $787 $1,029 $1,268

GN

10% $844 $1,281 $1,638

15% $802 $1,222 $1,606

20% $757 $1,152 $1,514





4A $1,656/$1,981 $2,392/$2,772 $2,972/$3,273

no own occ $1,669 $2,272 $2,808

no noncan $1,067 $1,420 $1,749

GN

10% $1,116 $1,748 $2,261

15% $1,061 $1,666 $2,217

20% $1,001 $1,570 $2,089





4P $1,656/$2,538 $2,392/$3,430 $2,972/$3,840

no own occ $2,135 $2,811 $3,293

no noncan $1,361 $1,753 $2,048

GN

10% $1,344 $2,102 $2,608





3A $1,906/$2,275 $2,793/$3,211 $3,510/$3,836

no own occ $1,915 $2,631 $3,290

no noncan $1,217 $1,637 $2,037

GN

10% $1,200 $1,927 $2,594

15% $1,140 $1,837 $2,543

20% $1,076 $1,731 $2,396





3P $1,906/$2,963 $2,793/$4,006 $3,510/$4,540

no own occ $2,492 $3,281 $3,893

no noncan $1,579 $2,038 $2,408

GN

10% $1,566 $2,517 $3,264





2A $2,699/$2,375 $3,704/$3,149 $4,427/$3,498

no noncan $1,505 $1,956 $2,165

GN

10% $1,668 $2,453 $3,097

15% $1,583 $2,337 $3,034

20% $1,493 $2,202 $2,858





A $2,918/$3,996 $4,074/$4,576 $5,141/$4,298

no noncan $2,523 $2,836 $2,657

GN

10% $2,340 $3,303 $3,970

15% $2,221 $3,146 $3,889

20% $2,093 $2,963 $3,663





B $2,091/$2,305 $2,912/$3,067 $5,820/$3,913

no noncan $1,461 $1,906 $2,420

GN

10% $1,634 $2,321 $3,569

15% $1,552 $2,212 $3,496

20% $1,463 $2,084 $3,293



• Commission changes• Transition rules


Help Protect Your Client’s Future withthe Power of Choice

The Protector+SM

for producer use only. not for use with consumers. this presentation is not for use in california....

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