We mentioned in our last issue of The Standard GI NEWS, that in 2009 we would bring you information to help you sell and place individual disability insurance (IDI) guarantee issue (GI) cases with The Standard. In this issue we thought you would be interested in seeing examples of existing GI cases at The Standard, to give you an idea of what successful cases look like.
Background details
- National Grocery Chain.
- Considering Employer-paid GI IDI, added to existing Long Term Disability (LTD).
- Existing LTD plan replaced 60% of pretax income to $10,000 per month; did not cover bonus or incentive income.
- The employer was interested in protecting a greater portion of executives' income.
Insurance of choice
- The company chose an employer-paid (mandatory) IDI GI program from The Standard with a benefit up to $7,500 per month.
- The offer included:
- total income replacement of 75%, included bonuses and incentive income, and
- up to a 20% premium discount.
Background details
- Midwestern Regional Manufacturing Company.
- Considering Employee-paid (voluntary) GI IDI, added to existing LTD.
- Existing LTD plan replaced 60% of pretax income, up to $5,000 per month.
- The employer was interested in:
- protecting a greater portion of all employees' earnings, and
- expanding benefit offerings to help retain employees without raising costs.
Insurance of choice
- The company chose employee-paid (voluntary) GI IDI with a benefit up to $2,000 per month.
- The company facilitated enrollment meetings.
- The insurance producer had a close relationship with key decision makers at the company.
- The producer used pre-printed enrollment materials.
- Almost 70% of eligible employees elected to participate.
- The offer included:
- total income replacement of 75%, and
- up to 15% premium discount.
While the above profiles describe GI IDI cases offered in workplace settings with existing LTD plans, GI IDI may also be offered as a strong stand-alone-product. For more information about The Standard's Mandatory and Voluntary IDI GI programs please see the GI Guidelines, forms 10437MGSI and 10437VGSI, available at www.standard.com/di.
Do you think you have a good candidate for a GI IDI case? Please contact GSI@standard.com or call 800 378.6058 if you have question about GI IDI. We are always happy to help you.
Nancy Young
971.321.2844
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Employees who have a GI plan may be subject to ERISA Form 5500 reporting if the plan covers 100 or more employees. At The Standard, the guarantee issue team is responsible for producing and distributing the Plan Information Report used by the employer to complete Schedule A for the Form 5500 report.
If an employer needs a Plan Information Report for Form 5500 reporting purposes, (required by large GI plans) please contact Nancy Young. She will be happy to assist you.
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It's always nice when respected press supports your IDI sales. Recently Kiplinger.com, a personal finance advice and business forecast website, published an article aimed at thirtysomethings, titled 10 Financial Commandments for Your 30s.
The sixth "commandment" is Protect Your Assets:
Even the best-laid financial plans can be derailed by an unexpected cost. So it pays to be prepared for the "what ifs" in life. For most thirtysomethings, that means having adequate homeowner's (or renter's) insurance, health insurance and disability insurance.
And the link to disability insurance in the article is to another Kiplinger.com piece answering the question "Why you need disability insurance" for someone who already has LTD at work.
Please contact GSI@standard.com or call 800. 378.6058 if you have questions about GI IDI. We are always happy to help you.
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Standard Insurance Company, Individual Disability Insurance,
1100 SW Sixth Avenue, Portland, OR 97204, USA.