Disability Income Insurance
Introducing MassMutual’s MaxElectSM
For Guaranteed Standard Issue Offers
For Producer Use Only. Not For Use with The Public.
C: 57864
Why MaxElect
We have created an enhanced multi-life version of
Radius® that aligns with 2 key components of our
marketing strategy –
 Meeting the Unique and Changing Needs of our
Customers
 Providing our producers the product they need for
worksite marketing where we provide a Guarantee
Standard Issue offer.
For Producer Use Only. Not For Use with The Public.
What Products to Sell?
 MaxElect
 For all GSI Offers
 For all GSI Offers which include additional coverage
where full underwriting is needed
 Radius 04 Series
 For all fully underwritten business (individual and
multi-life)
For Producer Use Only. Not For Use with The Public.
Meeting Unique and Changing Needs of our
Customers
 Ability to select the appropriate benefit during the
first offering and adjust benefits at renewal
(customized solutions).
 Continued ability to add fully underwritten
coverage on top of GSI benefits
 Updated provisions of the contract to align with
work site marketing needs and administration..
For Producer Use Only. Not For Use with The Public.
Benefits for Producers
 Capitalize on renewal activities
 Opportunity to increase participation due to
customized solutions
 Ability to offer greater cost incentives to employers
(employer paid business using pre-ex)
 Ability to better align with Group LTD provisions
 Opportunity for greater alignment with FlexElect
Multi-life (more eligible participants – more sales)
For Producer Use Only. Not For Use with The Public.
Field Advisory Committee
Disability Income worked with representatives from
the following areas in the design and
implementation of MaxElect.
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AAX Members
GAX Members
DI Specialists
Brokerage Directors
Master Producers
Multi-Life Producers
Regional Sales Consultants
DISO Sales Managers
For Producer Use Only. Not For Use with The Public.
What’s Changed from Radius?
Change
 Conditionally renewable to
age 75
 Expanding issue ages for
Extended Partial, COLA and
MBPE to age 64
 Pre-Existing Condition
Limitation (PECL) 12/12 in
base, 6/12, 3/12 by
endorsement
Advantage
 Eliminate the conversion to
61+, 9200 CR/TCR and 9500
CR/TCR
 Extending issue ages for these
riders aligns with worksite
sales
 The variety of pre-existing
condition limitations align
with most common Group
LTD plans and contributes to
the profitability of voluntary
worksite business.
For Producer Use Only. Not for Use with The Public.
What’s Changed from Radius?
Change
Advantage
 7% Employer pay rate
discount using PECL
 Employer pay business has
favorable morbidity and we
can pass a cost savings on to
employers
 $300 minimum policy
 Greater participation
anticipated.
 Dividend – change to
premium payer
 If the employer is paying the
premium, we want the
employer to reap the benefits
of our dividends*
*Dividends are not guaranteed. For Producer Use Only.
Not For Use with The Public.
What’s Changed from Radius?
Change
Advantage
 Exclusions and limitations
(normal pregnancy covered)
 Continuity with both our
worksite products and Group
LTD plans
 Right to Apply – current
policy series being sold
 Will always use current policy
series and current rates for
fully underwritten business
 Effective date of coverage
 Streamlined definition to align
with worksite marketing for
GSI offers.
For Producer Use Only. Not For Use with The Public
What’s Changed from Radius?
Change
 Definition of Sickness
 Time Limit on Certain
Defenses
Advantage
 To align with pre-existing
condition and to include
normal pregnancy
 Changes made to align with
the pre-existing condition
limitation provisions.
For Producer Use Only. Not For Use with The Public.
MaxElect Pre-Existing Condition Limitation
Pre-Existing Condition
 A condition for which:
 The Insured received medical treatment, consultation, care or
services including diagnostic measures, or took prescribed drugs or
medicines within 12 months prior to the Effective Date of Coverage
or the Effective Date of a change in Coverage or reinstatement; or
 The Insured had symptoms that would have caused an ordinarily
prudent person to consult a health care provider in the 12 months
immediately prior to the Effective Date of Coverage or the
Effective Date of a change in Coverage or reinstatement.
 For any additional benefit or change on a subsequent application, a
disease, mental disorder or physical condition will no longer be
considered a Pre-Existing Condition if it causes disability that begins
after the change in policy coverage has been in force for a period of 12
consecutive months.
For Producer Use Only. Not For Use with The Public.
MaxElect Pre-Existing Condition Limitation
 12/12 Pre-Existing Condition (PECL) is included in the
base policy. We have endorsements that allow a 6/12
and 3/12 PECL, and an endorsement that removes the
PECL from the policy.
 Full flexibility in plan design, except in the following
scenarios:
 Required for voluntary cases without underlying Group LTD
 To consider offers for favorable voluntary cases with less than
75 eligible employees (50+)
 An option to continue offer at renewal that might be
discontinued
For Producer Use Only. Not For Use with The Public.
MaxElect -PECL Advantages
 Flexibility to align with Group LTD PECL
 Renewal/Re-solicitation opportunities – ability to re-solicit
employees using MaxElect who previously declined offer or did
not take maximum benefit they were eligible for
 Cost containment option (voluntary rates would have had to
increase between 15-20% to maintain our profitability)
 Improved morbidity results for voluntary multi-life business
(claims during contestability period, protection against antiselection)
Note: Inclusion of Pre-Existing Condition Limitation has no bearing
on our reducing or enhancing a GSI offer
For Producer Use Only. Not For Use with The Public.
MaxElect Pre-Existing Condition Limitation
 It is important to note that if a claim is ineligible
due to the pre-existing condition limitation –
meaning that the date of disability began within 12
months of the Effective Date and the claim is
denied – the insured will NOT start to collect a
benefit on the 13th month following the Effective
Date.
 The Claim may be considered only if the date of
disability begins AFTER the first 12 months
following the Effective Date.
For Producer Use Only. Not For Use with The Public.
MaxElect Pre-Existing Condition Limitation
For GSI Coverage Only
 The Pre-Existing Condition will apply as defined.
For GSI Coverage with Fully Underwritten Coverage
 If the fully underwritten coverage is issued standard, even if
there is an admitted medical history and we decide to still
issue standard, the pre-existing condition limitation will not
apply to either the GSI or fully underwritten amount of
insurance.
 If the fully underwritten coverage is rated substandard,
ridered, declined, or there was an unadmitted medical
history and we issued standard, the pre-existing condition
limitation applies to the GSI amount of insurance.
Let’s look at a few examples.
For Producer Use Only. Not for Use with The Public.
MAXELECT POLICY
SIMPLIFIED COVERAGE ONLY
 Four possible claim scenarios for Pre-existing Conditions.
 Coverage is available on three of the four scenarios.
For Producer Use Only. Not For Use with the Pubic.
MAXELECT CLAIM SITUATION 1
Last Treatment Date
For Carpel Tunnel Syn
12 months
prior
Simplified Coverage Result:
Disability Date
due to CTS
Effective
Date
12 months
after
COVERED CLAIM
MAXELECT CLAIM SITUATION 2
Last Treatment Date
For Carpel Tunnel Syn
12 months
prior
Simplified Coverage Result:
Disability Date
due to CTS
Effective
Date
12 months
after
COVERED CLAIM
For Producer Use Only. Not For Use with the Public.
MAXELECT CLAIM SITUATION 3
Last Treatment Date
For Carpel Tunnel Syn
12 months
prior
Simplified Coverage Result:
Disability Date
due to CTS
Effective
Date
12 months
after
COVERED CLAIM
MAXELECT CLAIM SITUATION 4
Last Treatment Date
For Carpel Tunnel Syn
12 months
prior
Simplified Coverage Result:
Disability Date
due to CTS
Effective
Date
12 months
after
CLAIM NOT COVERED DUE TO PRE-EXISITING CONDITION LIMITATION
For Producer Use Only. Not For Use with the Public.
Risk of Disability
 Pre-Existing Condition: Medical consultation and prescribed
medication within 12 months prior to the Effective Date for
Hypertension.
 Disability: Stroke (Cerebral Vascular Accident – CVA) within 12
months after Effective Date of coverage.
 Typical Result: Covered Disorder. While the Pre-Existing Condition
places the individual at a higher risk for the disabling disorder, medical
science has not documented a substantially direct causal relationship
between the two conditions.
MassMutual believes that every claim must be analyzed individually with
due regard given to the particular facts, the provisions of the specific
policy at issue, and state laws applicable to each situation.
For Producer Use Only. Not For Use with the Public.
Disease Progression
 Pre-Existing Condition: Medical consultation and prescribed
medication within 12 months prior to the Effective Date for Diabetes.
 Disability: Visual Disorder (Diabetic Retinopathy) within 12 months
after Effective Date of coverage.
 Typical Result: Disorder Not Covered. Diabetes has well established
long-term complications for which medical science has documented a
substantially direct causal relationship between the two conditions.
MassMutual believes that every claim must be analyzed individually with
due regard given to the particular facts, the provisions of the specific
policy at issue, and state laws applicable to each situation.
For Producer Use Only. Not For Use With the Public.
PECL Scenarios – Combination of GSI & Fully Underwritten Coverage (assumption is that claim in on the
pre-existing condition)
Scenario
Coverage
History (On long form
application)
Coverage Issued
Claim for
disability that
begins within first
12 months of
Effective Date
Claim for
disability that
begins after first
12 months of
Effective Date
1.
$5,000 GSI
N/A
Standard
Eligible Claim
(PECL would not
apply)
Eligible Claim
(PECL would not
apply)
$2,000 Fully
Underwritten
Admitted
(pulled back muscle a
long time ago)
Standard
Eligible Claim
Eligible Claim
$5,000 GSI
N/A
Standard
Ineligible Claim
(PECL would
apply since we
excluded the
condition)
Eligible Claim
(PECL would not
apply)
$2,000 Fully
Underwritten
Admitted
(recent back injury within
the pre-existing condition
limitation period)
Exclusion Rider
On Back
Ineligible Claim
(Exclusion Rider)
Ineligible Claim
(Exclusion Rider)
2.
For Producer Use Only. Not For Use with The Public.
PECL Scenarios – Combination of GSI & Fully Underwritten Coverage
Scenario
Coverage
History (On long
form application)
Coverage
Issued
Claim for disability
that begins within
first 12 months of
Effective Date
Claim for disability
that begins after
first 12 months of
Effective Date
3.
$5,000 GSI
N/A
Standard
Ineligible Claim
(PECL would apply)
Eligible Claim
(PECL would not
apply)
$2,000 Fully
Underwritten
Admitted
(abnormal lab, i.e.
cholesterol)
Rated
(Substandard)
Eligible Claim
(additional premium
paid for condition)
Eligible Claim
(additional premium
paid for condition)
$5,000 GSI
N/A
Standard
Ineligible Claim
(PECL would apply)
Eligible Claim
(PECL would not
apply)
$2,000 Fully
Underwritten
Admitted
(Heart By-Pass
Surgery)
Decline
N/A – No coverage
issued
N/A – No coverage
issued
4.
For Producer Use Only. Not For Use with The Public.
PECL Scenarios – Combination of GSI & Fully Underwritten Coverage
Scenario
Coverage
History (On long
form application)
Coverage Issued
Claim for disability
that begins within
first 12 months of
Effective Date
Claim for
disability that
begins after first
12 months of
Effective Date
5.
$5,000 GSI
N/A
Standard
Ineligible Claim
(PECL would apply)
Eligible Claim
(PECL would not
apply)
$2,000 Fully
Underwritten
Unadmitted
Standard
Ineligible Claim
(Representations &
Contestability would
apply)
Ineligible Claim
(Representations &
Contestability
would apply for first
24 months, Fraud
provision could
apply after 24
months)
For Producer Use Only. Not For Use with The Public.
MaxElect-Exclusions
 Insured is imprisoned (this time does not count toward meeting
waiting period).
 Caused by war while the insured is in the military forces of any
country at war or in any civilian non-combatant unit serving with
those forces. War includes declared or undeclared war or any act
of war.
 Caused by any intentionally, self-inflicted injury.
 Sustained during the commission of a crime or engaged in an
illegal occupation.
 Due to the suspension, revocation or surrender of the insured’s
professional or occupational license or certification.
For Producer Use Only. Not For Use With Clients.
MaxElect – Right to Apply Provision
 Fully underwritten increases any time during the
year
 Same as FlexElect Multi-life
 If current policy series is sold in contract state, we
will add to existing policy using current rates at
time of Right to Apply application.
 If a new series policy is being sold, we will issue a
new policy using current rates for that policy series.
For Producer Use Only. Not For Use With Clients.
MaxElect – New Features
 Long Term Care Credit Endorsement
 Allows 2% of premium to be accumulated and applied to
reduce first year premium on a MassMutual Long Term
Care policy (full underwriting of LTC policy is required)
 Do not have to terminate DI policy to use
 Immediate family members can use the credits
 Have one year after policy expiration to use credits
For Producer Use Only. Not For Use With Clients.
MaxElect – New Features
 Catastrophic Disability Benefit Rider*
 Covers:
presumptive disability,
severe cognitive impairment and
the inability to perform 2 out of 6 Activities of Daily
Living (bathing, continence, dressing, eating, toileting,
transferring)
 Allows insured to cover up to 100% of their income
at time of application, subject to a maximum
monthly benefit of $8,000
* Available at an additional cost
For Producer Use Only. Not For Use With Clients.
MaxElect Pricing
PECL Option
MaxElect Reduction on
Voluntary Business vs.
Radius 04 Series
MaxElect Employer Pay 7%
Rate Discount vs.
Radius 04 Series
No PECL
Same as Radius 04 Series
Same as Radius 04 Series
(7% ER Paid Discount does not
apply)
3/12
5%
12%
6/12
8%
14%
12/12
12%
18%
Producer Commissions
MaxElect will be added to our current
commission and bonus schedules.
There is no difference between MaxElect and
Radius.
For Producer Use Only. Not For Use With Clients.
Competition
Who Else Has Pre-Existing Condition Limitations?
 Standard (XB 140)*
 Berkshire Guardian (1200)*
 Principal (HH 750 NC)*
*Policy information taken from policy filings in the state of MA as of 2004.
For Producer Use Only. Not For Use With Clients.
MaxElect Voluntary vs. Competition
25% Multi-life Discount (Rate information taken from rate
filings in the state of TN and MA as of 2004. Includes Extended Partial)
PECL
Option
UNUM
Choice
NWM
RR-DI
Standard
Protector
Berkshire
Provider
Plus
Principal Met Life
HH700
Omni
Advantage
12/12
19% lower
14% lower
9% lower
36% lower
15%
lower
13% lower
3/12
12% lower
7% lower
2% lower
30% lower
8% lower
6% lower
No
PECL
7% lower
2% lower
3% higher
27% lower
4% lower
1% lower
For Producer Use Only. Not for Use with The Public.
MaxElect Employer Pay vs. Competition –
25% Multi-Life Discount (Rate Information taken from rate
filings in the state of TN and MA as of 2004. Includes Extended Partial.)
PECL
Option
UNUM
Choice
NWM
RR-DI
Standard
Protector
Berkshire
Provider
Plus
Principal Met Life
HH700
Omni
Advantage
12/12
24% lower
20% lower
16% lower
40% lower
21%
lower
19% lower
3/12
18% lower
13% lower
9% lower
35% lower
15%
lower
12% lower
No
PECL
7% lower
2% lower
3% higher
27% lower
4% lower
1% lower
For Producer Use Only. Not For Use with The Public.
MaxElect – Marketing & Sales Aides
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MaxElect Product at a Glance (DI1815)
Product Portfolio (DI1900)
Product ’04 Sales Sheet (DI1817)
Employer Presentation
Group Meeting Presentation
Competitive Pieces (Fieldnet)
Annotated Application (DI1871)
Annotated Policy (DI1872)
Multi-life Worksite Marketing Producer’s Guide (DI1806)
For Producer Use Only. Not For Use with The Public.
MaxElect - Questions
 If you need assistance, please call:
 Your Regional Sales Consultant
 Your DISO Sales Office
 MassMutual DI Service Center at 1-800-272-2216
For Producer Use Only. Not For Use with The Public.
Massachusetts Mutual Life Insurance Company and affiliates, Springfield, MA 01111-0001 • www.massmutual.com
MassMutual Financial Group is a marketing designation (or fleet name) for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliates.