Disability Income Choice Portfolio That 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 (X 2 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
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 x STAO STAS LTAS Short-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 STAS x 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 x STAO 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 • 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 STAO STAS x LTAS
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 x STAO x STAS x 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 x STAO x STAS x 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 one foot • Total disability benefits paid for full length of benefit period • Elimination period will be waived x STAO 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 one foot • Total disability benefits paid for full length of benefit period • Elimination period will be waived STAO x STAS x 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 STAS x 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 STAS x 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 STAS x 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 x STAO 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 STAS x 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 STAS x LTAS
Critical Illness Insured Conditions • • • Alzheimer’s Disease Blindness Deafness Heart Attack Life-Threatening Cancer Major Organ Transplant Paralysis Renal Failure Stroke STAO x STAS x 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 STAS x 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 statesponsored disability benefits – the Railroad Retirement Act. STAO STAS x 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: 2 X 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 STAS x 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 STAS x 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 STAS x 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 STAS x 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
Product Summary
Product Summary
Product Summary
Disability Income Choice Portfolio Rates/Competitiveness
Rate Comparison – Blue Collar Occupations 2 -Year Benefit Period/30 -Day Elim Period
Rate Comparison – White Collar Occupations T 65/T 67 Benefit Period, 90 -Day Elim Period
Disability Income Choice Portfolio Scenarios
Short-Term Accident Only Prospect Profile John: 28 years old Occupation: Food service supervisor Annual 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 & Sickness Prospect Profile Bob and Mary: 30 years old Bob’s Occupation: Factory Supervisor Bob’s Annual Salary: $32, 000 Situation: Bob and Mary had just bought their first house. Mary is a stay-at-home Mom. If anything happened to Bob and he couldn’t work for awhile, the could have serious financial problems - They could even lose 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 & Sickness Prospect Profile Mark: 45 years old Occupation: Accountant Annual 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 Expense Prospect Profile Sandra: 42 years old Occupation: Business owner Annual 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 policy 18 -Month Benefit Period 90 -day Elimination Period
Disability Income Choice Portfolio Marketing Materials
Consumer Marketing Materials Please consult Sales Professional Access (www. mutualofomaha. com/broker) for state specific forms.
Producer Marketing Materials 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
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