What's Selling 2010
"Hi Mike, so what's selling these days?" This is the most frequent question I hear; both from the field and at The Standard's home office. I thought I'd share a few good representative examples of Guarantee Issue (GI) cases that have recently sold. These cases are a great reminder that GI can solve a variety of individual disability income insurance (IDI) needs faced by employers in the benefits market.
Employer-Paid Mandatory GI IDI Case Profile
Background Details
- A 30-plus year international specialty manufacturer of hard goods.
- 17 eligible lives, executives and key decision makers.
- The existing LTD plan replaced 60% of pretax income to $13,000 per month; did not cover bonus or incentive income.
- The employer was interested in protecting a greater portion of executives' income and incentive compensation.
The Business Need
- The primary motivating factor for the company was a desire to provide an enhanced benefit for key decision makers.
GI Solution of Choice
- The company chose an employer-paid (mandatory) GI IDI program from The Standard with a benefit up to $5,000 per month layered on top of their existing LTD plan.
- The offer included:
- Total income replacement of 75%, including bonuses and incentive income.
- 20% premium discount.
Employee-Paid Voluntary GI IDI Case Profile
Background details
- State university.
- Existing LTD plan replaced 60% of pretax income, up to $5,000 per month.
- The employer was interested in:
- Protecting a greater portion of employees' earnings.
- Expanding benefit offerings to help retain higher income employees without raising costs for employer.
The Business Need
- The university wanted to increase disability benefits without raising costs for the university.
- Solve the limitation of group LTD benefit cap which did not adequately cover staff earning more than $100,000 annually.
GI Solution of Choice
- The university chose employee-paid voluntary GI IDI from The Standard with a benefit up to $6,000 per month.
- The university facilitated enrollment meetings and emailed communications.
- The insurance producer had an existing relationship with key decision makers at the university and coordinated several key meeting with the human resources department.
- The producer used pre-printed enrollment materials and delivered them to each applicant.
- Over 58 individuals elected to participate.
- The offer included:
- Total income replacement of 65%.
- 15% premium discount.
- Flexibility for employees on sabbatical to apply once they return.
Guarantee Issue disability insurance from The Standard provided the employers the needed creative solution for the above cases and the Guarantee Issue team is ready to work with you to solve your clients' needs as well. In closing, the key to placing successful GI cases with us continues to be a matter of persistency and participation.
For employer-paid mandatory cases persistency is the significant factor. The Standard wants to write Guarantee Issue business with financially stable companies that will stay in force for many years.
And for employee-paid voluntary cases, it is of critical importance that companies can meet participation requirements. Since Voluntary GI comes with an increased risk to The Standard high participation levels ensure a large enough pool of participants to balance the risk.
For two more case profiles, you can use this issue of GI NEWS. Please see the Archives link at the top right of any GI NEWS to review additional helpful information about GI IDI at The Standard.
As always your Regional Director and the Guarantee Issue team at The Standard are available to answer your questions about finding ideal guarantee issue cases.
Best Regards
Mike Feuerstein
Manager, Guarantee Issue
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