Disability Income Choice Portfolio
That Works for Me
Agenda
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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
300 - 3,000
Express
Underwriting1
Short-Term
Accident/Sickness
Express
Underwriting1
Long-Term Plan
10-Year and To2 Year and 5-Year
Age-67 Benefit
Benefit Period
Period
Interview
Interview
Business Operating
Expense
Express
Underwriting1
Interview, Physical
Simplified
3,100 - 5,000
Interview
Data, Blood, and
Underwriting
Urine
Interview, Physical
Interview, Long
Interview, Physical
5,100 - 8,000
Data, Blood, and
Form Paramed,
Data, Blood, and
Urine
Blood and Urine
Urine
Interview, Long
Interview, Long
Interview, Long
Form Paramed,
Form Paramed,
Form Paramed,
8,100 and Above
Blood and Urine,
Blood and Urine,
Blood and Urine,
EKG2
EKG2
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 application
2
Age 45 and over only
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 and 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 and 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
state-sponsored 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: 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
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
Short-Term
Accident Only
(Off-the-Job)
Target Market 




Maximum
Benefit
Benefit
Period
Positioning
Short-Term
Accident/
Sickness
(Off-the-Job)
Ages 25-55
 Ages 25-55
Blue/Gray
 Blue/Gray
Collar
Collar
Household
 Household
Income:
Income:
$15,000$25,000$50,000
$75,000
Self-employed  Self-employed
Singles
 Young Families
$5,000
3 / 6 / 12 / 24
 Income
Continuation
 Lifestyle
Protection
 Convenience
Sale
 Mortgage
Protection



Long-Term
Accident/
Sickness




Ages 35-55
White Collar
Professional
Household
Income:
$50,000+
 Mature
Families
$10,000
($12,000 w/SIS)
Months
2 / 5 / 10 Years,
to age 67
Income Continuation
Lifestyle Protection
Mortgage Protection
Business
Operating
Expense (BOE)
 Small Business
Owners
 Self-Employed
 White Collar
 Professional
 Average Salary:
$35,000+
$15,000
12 or 18 Months
 Business
Overhead
Protection
Product Summary
Short-Term
Accident Only
(Off-the-Job)
Premium
Structure
Renewability
Own
Occupation
Period
Issue Ages
Elimination
Periods
(Accident/
Sickness)
Underwriting
Short-Term
Long-Term
Accident/
Accident/
Sickness
Sickness
(Off-the-Job)
 Level Until Age 67 – then Annually
Step-Rated
 Sex-Distinct
Business Operating
Expense (BOE)
 Level Until
 Level Until Age 65
Age 67
 Age Banded
 Unisex
 Gender Rated
 Age-Banded
Guaranteed
Guaranteed Renewable to Age 67 –
Guaranteed
Renewable to then Conditionally Renewable to Age
Renewable to Age
Age 67
75
65
2 Years
2 Years, or for
N/A
Duration of
Benefit Period via
Rider
18-61
20-59
14, 30, 60, 90
Days
Express Issue
Express Issue
up to $3,000
$3,100-$5,000:
Simplified Issue
60, 90, 180, 365
Days
30, 60, 90, 180, 365
Days
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)
Base Plan
Benefits
 Total/Partial
Disability
 Survivor Benefit
 Recurrent
Disability
 Presumptive
Total Disability
 Waiver of
Premium








Short-Term
Accident/
Sickness
(Off-the-Job)
Total/Partial
Disability
Survivor Benefit
Terminal Illness
Benefit
Recurrent
Disability
Presumptive
Total Disability
Waiver of
Premium
Transplant Donor
Benefit
Rehabilitation
Benefit
Long-Term
Accident/Sickness
Business Operating
Expense (BOE)
 Total Disability
 Total Loss of
Time Benefit
 Proportionate
 Recurrent Total
Disability
Loss of Time
 Survivor Benefit
Benefit
 Terminal Illness
 Waiver of
Benefit
Premium
 Recurrent
Disability
 Presumptive
Total Disability
 Waiver of
Premium
 Transplant Donor
Benefit
 Rehabilitation
Benefit
Product Summary
Short-Term
Accident Only
(Off-the-Job)
Optional
Benefits
 Hospital
Accident
Confinement
Short-Term
Accident/
Sickness
(Off-the-Job)
 Critical
Illness
 Hospital
Confinement
 Return of
Premium
Long-Term
Accident/Sickness
Business
Operating Expense
(BOE)
 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 Occupations
2-Year Benefit Period/30-Day Elim Period
Policy Form:
Base Benefit:
SIS Benefit:
Disability Definition:
Occupation class:
Residual Benefits?:
Non-Tobacco rates?:
DI Choice (STD)
D82
$
1,500
$
-
Illinois Mutual
GR21
$
750
$
750
UNUMProvident
601
$
750
$
750
2 Yr Own Occ
2
Yes
Yes
2 Yr Own Occ
2
Yes
Yes
2 Yr Own Occ
E1
Yes
Yes
Assurity
D100
$
$
750
750
2 Yr Own Occ
2A
Yes
Yes
MetLife
IDI2000-P/GR
$
750
$
750
2 Yr Own Occ
1A
No
Yes
25 male
35 male
45 male
55 male
470
636
945
1,459
387
510
713
1,311
704
831
1,061
1,713
657
871
1,273
1,961
619
776
1,082
1,559
25 female
35 female
45 female
55 female
705
891
1,134
1,459
459
678
804
1,297
1,018
1,274
1,475
1,964
1,067
1,529
1,876
2,283
690
961
1,226
1,472
Rate Comparison – White Collar Occupations
T65/T67 Benefit Period, 90-Day Elim Period
Policy Form:
Base Benefit:
SIS Benefit:
Benefit Period (To Age):
Disability Definition:
Occupation class:
Residual Benefits?:
Non-Tobacco rates?:
DI Choice (LTD)
D81
$
2,800
$
1,300
Illinois Mutual
GR21
$
2,800
$
1,300
UNUMProvident
601
$
2,800
$
1,300
MetLife
IDI2000-P/GR
$
2,800
$
1,300
67
2 Yr Own Occ
6
Yes
Yes
65
5 Yr Own Occ
5
Yes
Yes
67
2 Yr Own Occ
A1
Yes
Yes
65
MBP Own Occ
6A
Yes
Yes
25 male
35 male
45 male
55 male
748
1,126
1,802
2,633
883
1,192
1,782
2,568
719
1,045
1,715
2,714
646
1,024
1,797
2,525
25 female
35 female
45 female
55 female
1,098
1,556
2,152
2,633
1,283
1,761
2,581
2,788
1,087
1,524
2,137
2,913
936
1,543
2,370
2,766
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
Marketing Piece
Form Number
Short-Term Accident Only Highlight Sheet
Short-Term Accident and Sickness Highlight
Sheet
Long-Term Accident and Sickness Highlight
Sheet
Business Operating Expense
Highlight Sheet
Point-of-Sale Brochure
DI Choice Tri-fold
Consumer Need Brochure
Self Mailer with Reply Card
Pre-approach Letter
POD Kit (application, highlight sheet, outline
of coverage)
MC33599_0807
MC33600_0308
MC33601_0508
MC33592_0807
MC33593_1207
MC33597_0308
MC33832
MRC33594_1207
AFN40605_0607
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
Occ Class Manual
DI Choice Quick Reference Guide
Short-Term Accident Only Rate Guide
Short Term Accident & Sickness Rate Guide
Mutual of Omaha DI Contact Card
DI Choice Portfolio Postcard
DI Training Website Postcard
Money Back DI Postcard
DI Commission Stuffer
M25981_0408
M26043_0408
M26117_0208
M26042_1007
M26520
M26519
MC33598
MC33646
M26453
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
Winflex
Winflex
Output
Page
Winflex
Disability Income Choice Portfolio
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