At Initial Policy Issue
The Standard can integrate income protection coverage with previously purchased IDI policies from The Standard or other carriers. The combined base monthly benefit of the existing IDI policy and the new GME policy issued by The Standard cannot exceed:
- $7,500 for residents in final program year, unless using the One-Step Option. We will not consider other carriers' increase options when we issue this policy.
- $5,000 for residents not in final program year. We will not consider other carriers' increase options when we issue these policies.
Example 1 — Applicant not in final year of residency or fellowship has an existing base policy of $2,500 monthly benefit and $4,000 Future Purchase Option with another carrier. The customer would be eligible for a GME policy with a basic monthly benefit of $2,500 and a Benefit Increase Rider.
Example 2 — Applicant in final year of residency or fellowship has an existing base policy of $2,000 monthly benefit with a $5,000 FPO. We would issue a policy with a $5,500 base monthly benefit and a Benefit Increase Rider.
Once issued, Platinum Advantage for GME policies are subject to the following participation limits for future increases:
|
GME Monthly I&P Limits for Increases |
|||||
|
Product |
Occupation Classes |
Issue Age |
Max Issue From The Standard |
Max Participation |
|
|
With Other IDI1 |
With Group LTD2 |
||||
|
Protector+ |
4P, 3P, 2P |
Minimum 18 |
$15,000 |
$25,000 |
$30,000 |
|
Platinum Advantage |
5P, 4P, 4S, 3P, 3D |
18-55 |
$15,000 |
$30,000 |
$35,000 |
1 IDI from other carriers
2 Group LTD with The Standard or other carriers
Please note: the maximum issue is $15,000 of coverage from The Standard for all GME policies. New-in-practice limits don’t apply to GME policies.
GME Applicants Who Have Previously Applied for Income Protection From The Standard
When The Standard establishes a GME Program at an institution, we expect all efforts to be focused on the GME Program. Simultaneous traditional underwriting incurs time and costs, and if applicants are declined, they will no longer be eligible for the GME Program. Furthermore, a dual focus on traditional underwriting and the GME program creates a second-chance situation, acting as a disincentive to the GME program. For that reason, The Standard established the following rules:
- If a policy has been applied for in the last 12 months with The Standard and we offered an IDI policy, we will reduce the base monthly amount of the GME policy by the amount of the previously applied for policy, even if the policy was not accepted.
- If an application for fully underwritten IDI coverage is postponed or declined by any carrier in the seven years prior to the application date for the GME Program, the applicant will not be eligible for the GME Program.
- We will not replace or reduce fully underwritten coverage from the The Standard with GME coverage.
Example, applicant not in final program year — Customer has an existing base policy of a $1,500 monthly benefit and $4,000 FPO, and, additionally, was approved for a policy of $2,000 from The Standard six months prior but did not accept the policy. We would issue a policy with a $1,500 base and a Benefit Increase Rider. Note, we offset against the amount applied for and in force.
Example, applicant in final program year — Customer has an existing base policy of a $2,000 monthly benefit and $4,000 FPO, and, additionally, was approved for a policy of $3,000 from The Standard six months prior but did not accept the policy. We would issue a policy with a $2,500 base and a Benefit Increase Rider. Note, we offset against the amount applied for and in force.
Replacing Other Carrier's IDI Coverage With GME From The Standard
Our preference is always to integrate with other coverage, but we will replace coverage within the plan offering up to a $7,500 base monthly benefit if in the final year of residency or fellowship with the Benefit Increase Rider. In this case, the insured must sign a Replacement Notice (if the state requires one) indicating they have canceled existing coverage as a condition for The Standard to issue non-integrated GME IDI coverage. This will result in an amendment, which will be a delivery requirement at the time of policy delivery. Please note that those residents who replace coverage can only apply for the basic monthly benefit as outlined in the plan-specific offer letter and above.
