imagine your income 13604ppt (rev 5/12) protected and safe · how much will you have to protect?...

© 2010 Standard Insurance Company 13604PPT (Rev 5/12)

Imagine your income protected and safe


If you were to estimate, as of today, do you know how much you might earn by the time you retire?

If you are like most people, your salary makes your lifestyle possible


Jean is a 35 year-old who receives $8,400 a month in salaried income. If her salary stays at the same level throughout her working life, at a retirement age of 65 she will have generated $3,024,000 in salaried income for herself and her family.

For example


For example

With increases and bonuses, Jean’s future earnings could easily double. In that case she would have almost $6 million to protect.

Jean’s future earnings without increases or bonuses

$ 3,024,000 Jean’s future earnings with increases and bonuses (assuming 4% annual increases in income)

$ 5,980,296


How much will you have to protect?

Your retirement age

Your total earnings until your retirement age

$

- Your age now

x

Your monthly salary

x 12

= As in the example on the previous slide, this figure will likely be substantially larger if you receive annual increases and/or bonuses.


The threats to your financial security are real


This example is provided only to show a breakdown of The Standard’s open claims above as of 12/31/2012 without regard to the decision made on each claim. Having the conditions listed does not establish disability. Each claim is evaluated on its own merits and according to the terms of the policy.

Disabilities have many causes

0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00%

Circulatory System Disorder

Fractures (except Back)

Nervous System Disorder

Mental Nervous/Substance Abuse

Cancer

Back Disorder

Injury / Disease of Joints

All others


**

* Individual Disability Experience Committee, Society of Actuaries, 2005.

** Average Duration of Disability Lasting More Than 90 Days and beginning before age 65. Duration is measured from the start of disability to (at most) age 65.

The length of disabilities Disabilities that last more than 90 days often last for several years.* Could you manage financially for that length of time?


Unexpected costs

Many people greatly underestimate how high their medical expenses may become during a long-term disability. There may be many unexpected costs. The chart at right shows a typical financial picture during disability.


How you can protect your future


Individual disability income insurance provides monthly cash benefits in the event you are unable to generate an income due to a disabling illness or accident.

Consider the Individual Disability Income Insurance plan offered by your employer


• When individual disability income insurance is offered at the workplace, it is usually available on a Guarantee Standard Issue basis.

• Guarantee Standard Issue disability income insurance has several advantages over coverage you can find on your own.

Advantages to you when you obtain income protection at work


Policies are issued regardless of • health status • age* • gender

so you will likely be able to obtain coverage for which you might not otherwise qualify.


* Age is considered in determining the premium for each policy


• Policies are discounted at significant premium rates otherwise unavailable to you

• The higher your income, the greater the benefit that may be available to you

• Bonuses, distributions and other incentive income are usually included in the total income figure used to calculate your eligible benefits



Long term disability insurance (LTD) is a valuable benefit. However, many policy holders misunderstand how much of their income the LTD policy covers. The illustration at the right represents coverage with a typical LTD policy. It covers 60% of your income, with benefits of about 45% of your gross earnings.

When your employer already offers long term disability insurance

Assumes a 25% tax bracket.


This chart shows how much of your income might be covered, if you chose to combine the after-tax benefits of a typical LTD plan with those provided by the Guarantee Issue Individual Disability Income (IDI) insurance plan offered by your employer.

When your employer already offers long term disability insurance


Protector PlatinumSM Guarantee Issue Plan Features

If Protector Platinum is not yet approved in your state please select a link below • Protector+ Guarantee Issue Plans • Protector+ Guarantee Issue Plans (California only)


• If because of an injury or sickness, you are unable to perform the primary duties of your regular occupation, and

• You are not working in any other gainful occupation, and

• You are under the regular care of a physician,

you are considered “totally disabled” under the terms of The Standard’s guarantee issue disability income insurance policy.

(continued)

When your coverage goes into effect

Protector Platinum Guarantee Issue Plan Features


• “Regular Occupation” means the occupation(s) in which you are regularly engaged at the time your disability begins.

• If you have limited your practice to a professionally recognized specialty in medicine or law, then that specialty is deemed your regular occupation.

(continued)

When your coverage goes into effect (cont’d)



If you permanently lose your hearing, speech, sight or the use of two limbs, you are presumed “totally disabled”, beginning on your first day of loss. Your coverage also goes into effect when you are considered “partially disabled”. (continued)




During the Initial Period of Partial Disability (the waiting period following the onset of your disability and the first six months during which disability benefits are payable) if you are “partially disabled” The Standard will pay full monthly benefits. (continued)




During the Initial Period you are considered partially disabled when • You are working in your own occupation or any other

occupation, and • Due to your injury or sickness, you have a

- loss of duties, or - loss of time, or - loss of income, and

• You are under the regular care of a physician appropriate for your injury or sickness.

(continued)




Following the Initial Period while you remain “partially disabled” the amount of disability benefit payable each month will be a portion of your policy’s basic monthly benefit, depending on the amount of earnings you have lost in that month due to your disability. (continued)




Following the Initial Period you are considered partially disabled when • You are working in your own occupation or any other

occupation, and • Due to your injury or sickness, you have a loss of income, and • You are under the regular care of a physician appropriate

for your injury or sickness.




Immediately after you have recovered from your disability under the provisions of a Protector Platinum Guarantee Issue policy, The Standard will pay you a Recovery Benefit if you have a loss of income that is solely the result of the injury or illness that caused your disability. The monthly benefit amount is in proportion to your loss of earnings for that month.

Benefits after you recover



If you participate in a voluntary rehabilitation program to help you prepare to return to work full-time, The Standard will pay the reasonable costs of the program if: • You have accepted the terms and

objectives of the program • The Standard has approved the

program and determined it meets the mutually agreed-upon objectives

When you participate in a rehabilitation program



The Standard pays a Survivor Benefit for three months beyond the date of your death, if you die while disability or recovery benefits are payable under the Protector Platinum Guarantee Issue policy.

Survivor Benefits Protector Platinum Guarantee Issue Plan Features


The Standard pays a monthly benefit to you if, more than six months after your Protector Platinum Guarantee Issue policy’s effective date, you are disabled as a result of surgery to improve your appearance, prevent disfigurement or transplant part of your body to someone else.

Cosmetic or Transplant Surgery Benefit



The Standard will waive all premiums due under this policy while disability benefits or recovery benefits are payable.

We will waive the premium due



Plans vary depending on the riders chosen by your employer and the availability of features in your state. Available riders may include the following: • Own Occupation Rider • Noncancelable Policy Benefit Rider • Indexed Cost of Living Benefit Rider • Catastrophic Disability Benefit Rider

Guarantee Issue Riders Protector Platinum Guarantee Issue Plan Features


If the Own Occupation Rider is part of your coverage under your Protector Platinum Guarantee Issue plan, the definition of total disability is changed. With this rider, you may be eligible for benefits if you are disabled in your regular occupation but are earning income from another occupation.

Own Occupation Rider Protector Platinum Guarantee Issue Plan Features


If part of your Protector Platinum Guarantee Issue policy, the Noncancelable Policy Rider locks in premium rates so long as the premiums are paid by the end of each grace period.

Guarantees The Level of Your Premium Rates



Just as inflation affects the value of your savings the value of your disability income coverage can be eroded by inflation. When the Indexed Cost of Living Benefit Rider is part of a Protector Platinum Guarantee Issue plan, the monthly benefit payment can increase by up to 3% or 6% annually while you are disabled, based on changes in the Consumer Price Index, depending on which percentage was chosen for your plan.

Indexed Cost of Living Rider



In the event you suffer a “Catastrophic Disability”, you may need additional income to offset your expenses. Catastrophic disability means you are unable to perform two or more activities of daily living without assistance, have a severe cognitive impairment, or are presumptively totally disabled. Activities of daily living include: bathing, continence, dressing, eating, toileting and transferring. Transferring is moving into or out of a bed, chair, or wheelchair, with or without adaptive devices. The Catastrophic Disability Benefit Rider pays a monthly benefit in addition to the benefits you already receive with Protector Platinum Guarantee Issue.

Catastrophic Disability Benefit Rider



Please ask your insurance representative to explain the details of this important insurance to you.

One more important consideration The insurance company matters.

Questions? Protector Platinum Guarantee Issue Plan Features


Features of Protector+SM Guarantee Issue Plans

In California, please select the link below: • Features of Protector+ Guarantee Issue plans in California


• If because of an injury or sickness, you are unable to perform the usual duties of your regular occupation, and

• You are not working in any other gainful occupation, and

• You are under the care of a physician,

you are considered “totally disabled” under the terms of the Protector+ guarantee issue disability income insurance policy.


Protector+ Guarantee Issue Plan Features (not California)


If you permanently lose your hearing, speech, sight or the use of two limbs, you are presumed “totally disabled”, and benefits begin on your first day of loss.




• Recurrent periods of disability from the same cause or causes are considered one period of continuous disability if separated by your recovery of less than 12 months.

• Periods of disability separated by less than 12 months will accumulate to satisfy the waiting period if the disabilities are from the same cause or causes.

continued

Continuous Disability



If you are disabled from separate, unrelated causes, and/or you become disabled after 12 months* of recovery, a new waiting period will apply. * The 12 month period is reduced to six months in some states.

Continuous Disability (cont’d)



The Standard will pay Rehabilitation Benefits that represent the difference, if any, between the benefit for which you would be eligible if you were “totally disabled” as defined earlier and the disability benefit for which you are eligible. We will also pay reasonable costs of the program not covered by other plans.

If you participate in an approved vocational rehabilitation program



If you die while receiving total disability benefits, The Standard will pay the policy’s basic monthly benefit to your estate for the lesser of three months or the number of months left in the maximum benefit period.

Survivor Benefits Protector+ Guarantee Issue Plan Features (not California)


The Standard will consider you disabled, if, more than six months after the policy is effective, you become disabled due to cosmetic or transplant surgery.




• While you are disabled and after the earlier of the date benefits start or the 90th day of disability, The Standard will waive premiums due under the policy.

• We will continue to waive future premiums while benefits are payable.

• After the waiting period has passed, we will refund any premium due or paid after the date your disability began.




This feature means your policy is guaranteed renewable to the termination date of your plan, as long as the premiums are paid on time.

Guaranteed Renewable

Renewal for Life You may ask to continue the policy beyond your plan’s termination date if you are working at least 30 hours per week. Some policy features will change.



Each plan will include one of the following Guarantee Issue riders: • Pre-Existing Conditions Amended • Pre-Existing Conditions Waived • Pre-Existing Conditions for employee-paid open enrollment

The most common rider is the first rider listed above. This changes the policy language to waive the pre-existing condition exclusion if you become disabled after the policy has been in force for twelve consecutive months, and all other conditions for waiver are met.

Guarantee Issue Riders Protector+ Guarantee Issue Plan Features (not California)


Plans vary based on the coverage chosen by your employer and permitted by your state. • Residual Disability Rider • Own Occupation Rider • Noncancelable Policy Rider • Catastrophic Benefit Rider • Indexed Cost of Living Rider • Supplemental Social Insurance Rider • Mental Disorder/Substance Abuse Limitation Endorsement • ERISA Claims Procedures Endorsement

Features that may be part of your plan



The Residual Disability Rider pays a benefit if you are not “totally disabled” but you are disabled enough to incur at least a 20% loss of income, • and you are able to do some, but

not all, of your regular occupation’s substantial and material duties, or

• you are able to do all of these duties, but not for as long a time or as effectively as before.

You must also be under the care of a physician. continued

Residual Disability Rider Protector+ Guarantee Issue Plan Features (not California)

Return to Protector+ GI Plan Features Index


The rider also pays a recovery benefit if you return to work at least 30 hours per week immediately after a period of disability for which residual disability benefits were paid.

Residual Disability Rider (cont’d)




• This rider liberalizes the definition of “total disability”. Under this rider you are considered “totally disabled” if, because of injury or sickness, you are unable to perform the substantial and material duties of your regular occupation even though you are working in another occupation.

• You must be under the care of a physician. • The Mental Disorder/Substance Abuse Limitation is added

to each policy that has the Own Occupation Rider.

Own Occupation Rider Protector+ Guarantee Issue Plan Features (not California)



This rider changes the policy and riders to noncancelable and guaranteed renewable. Premiums cannot be increased prior to the policy’s termination date. Also, the rider changes the policy to provide that, if the maximum benefit period is longer than five years and you become eligible for the benefit for presumptive total disability, the total disability benefit will be payable for your lifetime so long as the presumptive disability continues.

Noncancelable Policy Rider




This rider pays an additional benefit if you are receiving the benefit for total disability and you are unable to perform at least two activities of daily living (ADLs*) have a severe cognitive impairment, or are presumptively totally disabled.

*ADLs include bathing, continence, dressing, eating, toileting and transferring. Transferring means moving into and out of a bed, chair or wheelchair.

Catastrophic Disability Benefit Rider




Just as inflation affects the value of your savings the value of your disability income coverage can be eroded by inflation. When the Indexed Cost of Living Benefit Rider is part of a Protector+ Guarantee Issue plan, the monthly benefit payment can increase by up to 3% or 6% annually, based on changes in the Consumer Price Index, depending on which percentage was chosen for your plan.





This rider pays a benefit if the policy’s total disability benefit is payable and no legislated benefits are payable. You must apply for legislated benefits for which you may be eligible. A reduced benefit may be payable if legislated benefits are less than the amount paid under the rider.

Supplemental Social Insurance Rider




• This endorsement adds a two-year benefit period limitation for disabilities caused by mental disorder and/or substance abuse.

• This limitation endorsement is added to each policy that has the Own Occupation Rider.

• The endorsement may also be used at underwriter discretion.

Mental Disorder and/or Substance Abuse Limitation Endorsement




• This endorsement includes legally required claims language for policies covered by the Employee Retirement Income Security Act, and replaces existing language relating to Claims.

ERISA Claims Procedure Endorsement






Questions? Protector+ Guarantee Issue Plan Features (not California)


Features of a Protector+SM

Guarantee Issue Plan in California Please select a link below to bypass this section. • Features of Protector PlatinumSM Guarantee Issue Plans • Features of Protector+ Guarantee Issue Plan (states other than California) • One more important consideration


If because of an injury or sickness, • you are unable to perform with

reasonable continuity the substantial and material acts of your regular occupation in the usual and customary way, and

• you choose not to work in any occupation

you are considered “totally disabled”. continued


Protector+ Guarantee Issue Plan Features (California only)


Your “regular” occupation is your occupation at the time your disability begins, but is not necessarily limited to the specific job you perform at that time. If you choose to work in any occupation, you are not considered “totally disabled”. In that case, you may qualify for benefits under the Partial Disability Rider, which is part of every Protector+ Guarantee Issue policy in California. continued




Under the Partial Disability Rider, you receive benefits if you are • Not totally disabled • Working in an occupation, but as

a result of your injury or illness you are unable to earn 80% or more of your prior monthly earnings.

When you coverage goes into effect (cont’d)



• Recurrent periods of disability from the same cause or causes are considered one period of continuous disability if separated by your recovery of less than 6 months.

• Periods of disability separated by less than 6 months will accumulate to satisfy the waiting period if the disabilities are from the same cause or causes.

continued

Continuous Disability



If you are disabled from separate, unrelated causes, and/or you become disabled after 6 months of recovery, a new waiting period will apply.

Continuous Disability (cont’d)



•The Standard will pay Rehabilitation Benefits that represent the difference, if any, between the benefit for which you would be eligible if you were “totally disabled” and the disability benefit for which you are eligible.

•The Standard will also pay reasonable costs of the program not covered by other plans.

If you participate in an approved vocational rehabilitation program



The Standard will consider you disabled, if, more than six months after the policy is effective, you become disabled due to cosmetic or transplant surgery.




While you are disabled and after the earlier of the date benefits start or the 90th day of disability, The Standard will waive premiums due under the policy. We will continue to waive future premiums while benefits are payable. After completing of the waiting period, we will refund any premium due or paid after the date your disability began.




This feature means your policy is guaranteed renewable to the termination date of your plan, as long as the premiums are paid on time.

Guaranteed Renewable

Renewal for Life You may ask to continue the policy beyond your plan’s termination date if you are working at least 30 hours per week. Some policy features will change.



Plans vary based on the coverage chosen by your employer. Optional features include: • Own Occupation Rider • Noncancelable Policy Rider • Indexed Cost of Living Rider • Supplemental Social Insurance Rider • Mental Disorder/Substance Abuse Limitation • ERISA Claims Procedure Endorsement • Pre-Existing Conditions Amended Rider • Pre-Existing Conditions Waived Rider

Features that may be part of your plan



• This rider liberalizes the definition of “total disability”. Under this rider you are considered “totally disabled” if, because of injury or sickness, you are unable to perform the substantial and material duties of your regular occupation even though you are working in another occupation.

• You must be under the care of a physician.

• The Mental Disorder/Substance Abuse Limitation is added to each policy that has the Own Occupation Rider.

Own Occupation Rider Protector+ Guarantee Issue Plan Features (California only)

Return to Protector+ GI Plan (California only) Features Index


This rider changes the policy and riders to noncancelable and guaranteed renewable. Premiums cannot be increased prior to the policy’s termination date. Also, the rider changes the policy to provide that, if the maximum benefit period is longer than five years and you become eligible for the benefit for presumptive total disability, the total disability benefit will be payable for your lifetime so long as the presumptive disability continues.

Noncancelable Policy Rider




Just as inflation affects the value of your savings the value of your disability income coverage can be eroded by inflation. When the Indexed Cost of Living Benefit Rider is part of a Protector+ Guarantee Issue plan, the monthly benefit payment can increase by up to 3% or 6% annually, based on changes in the Consumer Price Index, depending on which percentage was chosen for your plan.





• This rider pays a benefit if the policy’s total disability benefit is payable and no legislated benefits are payable.

• You must apply for legislated benefits for which you may be eligible.

• A reduced benefit may be payable if legislated benefits are less than the amount paid under the rider.

Supplemental Social Insurance Rider




• This endorsement adds a two-year benefit period limitation for disabilities caused by mental disorder and/or substance abuse.

• It is added to each policy that has the Own Occupation Rider.

• The endorsement may also be used at underwriter discretion.

Mental Disorder and/or Substance Abuse Limitation Endorsement




• This endorsement includes legally required claims language for policies covered by the Employee Retirement Income Security Act, and replaces existing language relating to Claims.

ERISA Claims Procedure Endorsement




This Rider changes the policy language to allow payment of benefits for a pre-existing condition or for medical or surgical treatment of a pre-existing condition if you become disabled after the policy has been in force for 12 consecutive months and you received medical treatment, care or services for a diagnosed condition or took medication for a diagnosed condition in the 90 days immediately before the policy’s effective date.

Pre-Existing Conditions Amended Rider




This rider changes the policy by removing the entire pre-existing conditions limitation. There is an additional premium charge, and the rider requires underwriting approval.

Pre-Existing Conditions Waived Rider






Questions? Protector+ Guarantee Issue Plan Features (California only)


One more important consideration


The insurance carrier you choose is as important as the quality of the insurance protection you elect. • How does the company treat its

customers at claim time? • How financially stable is the

company? • Can you count on the company

to be there when you need it? • What is its reputation?

Who can you trust?


• has been keeping its promises to its customers since 1906

• ranks among the top ten disability insurance companies in the nation

• rates 1st among its peers with high levels of customer service, a sound liquidity position and strong financial flexibility*

Click here to find out more about The

Standard.

* Peer Comparison: U.S. Specialty Employee Benefit Insurers. Standard & Poor’s Rating services.

The Standard

http://www3.standard.com/net/public/!ut/p/c1/04_SB8K8xLLM9MSSzPy8xBz9CP0os3jvgGBzN29zY0MDLyNTAyM_YyMXF1c3AyDQ9_PIz03VL8h2VAQAd0JeMA!!/dl2/d1/L2dJQSEvUUt3QS9ZQnB3LzZfS1BTN0ZLNzMxMEoyNTAyTjMyRERFRjBFQzE!/�

imagine your income 13604ppt (rev 5/12) protected and safe · how much will you have to protect?...

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