11399PPT (11/09) Individual disability income insurance at The Standard For producer use only. Not...

11399PPT (11/09)

Individual disability income insurance at The Standard

For producer use only. Not for use with consumers.

The Protector SeriesSM

© Standard Insurance Company 11399PPT (11/09)

Individual Disability Insurance at The Standard

Table of Contents

• Why IDI is such valuable insurance for your customers.• The Protector+SM individual disability income insurance.

• The ProtectorSM individual disability income insurance.

• There are three kinds of disability.• Disability claims at The Standard.• About The Standard.

11399PPT (11/09)

Why individual disability income insurance is so valuable for your customers

Return to Table of Contents



Why IDI is such valuable insurance for your customers

Three in ten workers entering the workforce today will become disabled before retiring.*

*Social Security Administration Fact Sheet 2007, as quoted by The Council for Disability Awareness, October 2007.




Disabilities are tending to last longer

Age Duration3

Under 40 4 years

40 - 44 4.3 years

45 - 49 4.6 years

50 - 54 4.5 years

55 - 59 3.5 years

60 - 64 1.7 years

1.Transactions. Society of Actuaries, 1981 Reports. 2. Individual Disability Experience Committee, Society of Actuaries, 2005. 3.Average Duration of Disability Lasting More Than 90 Days. Beginning Prior to Age 65 Duration of disability is measured from the start of disability to (at most) age 65.

19811

Age Duration3

Under 40 5.1 years

40 - 44 6.6 years

45 - 49 6.6 years

50 - 54 5.6 years

55 - 59 3.8 years

60 - 64 1.7 years

20052




When they already have LTD at work, many consumers do not realize that a 60% typical LTD policy does not mean 60% of pay is covered by LTD. Since LTD benefits are usually taxable, typical net benefits are 45% of gross earnings.

11399PPT (11/09)

The Protector+SM

Individual disability income insurance




The Protector+ individual disability income insurance*

• Guaranteed Renewable to Age 66/67• Renewable for Life • Definition of Total Disability• Definition of Presumptive Total Disability• Definition of Continuous Disability• Rehabilitation Benefit• Survivor Benefit (Not available in all states)• Waiver of Premium Benefit• Cosmetic or Transplant Surgery Benefit• Exclusions from coverage• Optional Riders

*The Protector+ is not available in California



The Protector+ individual disability income insurance

Guaranteed Renewable

Guaranteed renewable to age 66/67. The Standard cannot change any part of the policy, except premiums after the policy is three years old, as long as the premium is paid by the end of each grace period.




Renewable for Life

The insureds may ask to continue the policy beyond the termination date if they are working at least 30 hours per week and not disabled at the time of the request.

Only the total disability benefit may be available and the premium may change. The maximum benefit period is limited to 24 months before age 75, and to 12 months after age 75.




Definition of total disability

Because of the insured’s injury or sickness:• the insured is unable to perform the substantial and material

duties of his regular occupation; and• the insured is not engaged in any other gainful occupation; and • the insured is under the regular care of a physician appropriate

for the injury or sickness. This physician’s care requirement is waived when The Standard receives written proof, satisfactory to The Standard, that further care would be of no benefit to the insured




Definition of presumptive total disability

The insured’s total and permanent loss, because of injury or sickness, of one of the following:•speech;•hearing in both ears, not restorable by hearing aids;•use of both hands;•use of both feet, or use of one hand and one foot;

or•Total and permanent loss of sight in both eyes. Both eyes must measure at or below 20/200, after reasonable efforts are made to correct vision, using the most advanced medically acceptable procedures and devices available.




Definition of continuous disability

Recurrent periods of disability from the same cause(s) if separated by the insured’s recovery of less than twelve* months.

Waiting period must be satisfied within the total number of consecutive days equal to:

2 times the waiting period, if 180 days or less,

or

1½ times the waiting period, if more than180 days

*Six months in some states




Rehabilitation Benefit

• If while receiving disability benefits, the insured participates in a rehabilitation program approved by The Standard, we will pay the difference between the benefit the insured would have been eligible for if totally disabled, and the benefit for which the insured is eligible. If the insured qualifies for the rehabilitation benefit, The Standard will pay the total benefit, even if the insured is residually disabled.

• The Standard will also pay reasonable costs of the rehabilitation program not covered by other plans or policies. The Standard will pay rehabilitation disability benefits for the lesser of 36 months or the rest of the benefit period




Survivor Benefit

If the insured dies while receiving total disability benefits, The Standard will pay the policy’s basic monthly benefit to the owner or the owner’s estate for the lesser of three months or the number of months left in the Maximum Benefit Period.

*Not available in all states




Waiver of Premium Benefit

While the insured is disabled: • after the earlier of the date benefits start or the

90th day of disability, The Standard will waive premiums currently due;

• after completion of the waiting period The Standard will refund any premium paid after the date disability began.



Cosmetic orTransplant Surgery Benefit

The Standard will consider the insured disabled if, more then six months after the policy is effective, the insured becomes disabled due to cosmetic or transplant surgery.





Exclusions from coverage

The Standard will not pay benefits for disability due to war.

• War means any:–war, declared or undeclared, whether civil or international;–act of war;–act incident to war;–insurrection; and–substantial armed conflict with organized forces of a

military nature.




Exclusions from coverage (continued)

The Standard will not pay benefits

• during the first 90 days of the insured’s disability due to pregnancy or childbirth.

• for disability caused or contributed to by the insured:– committing or attempting to commit an assault or felony;

or – actively participating in a violent disorder or riot. Actively

participating does not include the insured being at the scene of a violent disorder or riot while performing his official duties;





The Standard will not pay benefits for

• disability while the insured is confined for any reason to a penal or correctional institution;

or• intentionally self-inflicted injury.




Optional Riders

• Residual Disability Rider• Indexed Cost of Living Rider• Supplemental Social Insurance Rider• Future Purchase Option Rider• Noncancelable Rider• Catastrophic Disability Benefit Rider• Own Occupation Rider



The Protector+ Optional Riders

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* The Own Occupation Rider is available for all 3A, 3P, 4A and 4P occupations except podiatrists and self-employed stockbrokers.

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Residual Disability Rider

Residual disability means the insured is not totally disabled, but because of his injury or sickness:• his monthly earnings are reduced by 20% or more of his indexed prior

monthly earnings; and• he is under the regular care of a physician appropriate for his injury or

sickness; and• he is able:

– to do some, but not all, of the substantial and material duties of his regular occupation; or

– to do all of the substantial and material duties of his regular occupation, but not for as long a time or as effectively as he did immediately prior to his injury or sickness.




Indexed Cost of Living Rider (ICOL)

The ICOL Rider helps provide a cushion against inflation during a lengthy disability.

For each year of disability after the first, the rider pays an amount in addition to the policy benefit based on the average annual change in the Consumer Price Index for All Urban Consumers (CPI-U), subject to a cap of either 3% or 6%, whichever is chosen on the application.

Payment is subject to the policy’s benefit period and other requirements. The amount payable under the rider will not decrease even if the CPI-U decreases




Supplemental Social Insurance Rider

This rider pays a benefit if the policy’s total disability benefit is payable and no legislated benefits are payable for the disability.

The insured must apply for legislated benefits for which he may be eligible and meet other requirements in the rider.

A reduced benefit is available if legislated benefits are payable that are less than the rider benefit amount.




Future Purchase Option Rider

This rider allows for the purchaseof benefit increases on each policy anniversary subject only to financial underwriting.

Evidence of the insured’s good health is not required to purchase an increase.




Noncancelable Policy Rider

This rider changes the policy and all riders made part of the policy from guaranteed renewable to noncancelable and guaranteed renewable.

The Standard cannot change the policy terms or premiums until the termination date.

This rider also changes the policy to provide that, if the maximum benefit period is longer than five years and the insured become eligible for the benefit for presumptive total disability, the total disability payments will be payable for his lifetime as long as the presumptive disability continues.




Own Occupation Rider

This rider liberalizes the definition of total disability and is issued with a two-year mental disorder and substance abuse limitation

Removesthis sentence from the definition of Total Disability

Because of your Injury or Sickness:

1. You are unable to perform the substantial and material duties of Your Regular Occupation; and

2. You are not engaged in any other gainful occupation; and

3. You are under the regular care of a Physician appropriate for your Injury or Sickness. This physician’s care requirement will be waived when We receive written proof, satisfactory to Us, that further care would be of no benefit to You.




Mental Disorder/ Substance Abuse Limitation Endorsement

Two-year benefit period limitation for disability caused by mental disorder or substance abuse. This limitation endorsement is added to each policy that has the Own Occupation Rider.

This endorsement may also be used at underwriter discretion.




Catastrophic Disability Benefit Rider

This rider pays an additional benefit if the insured is receiving the benefit for total disability and is unable to perform at least two activities of daily living (ADLs), has a severe cognitive impairment, or is presumptively totally disabled.

ADLs include bathing, continence, dressing, eating, toileting and transferring (moving in and out of a bed, chair or wheelchair).

11399PPT (11/09)

The ProtectorSM

Individual disability income insurance (California only)

Return to Table of Contents Skip this section



The Protector disability income insurance

• Guaranteed Renewable to Age 66/67 • Renewable for Life • Definition of Total Disability• Definition of Presumptive Total Disability• Definition of Continuous Disability• Rehabilitation Benefit• Waiver of Premium Benefit• Cosmetic or Transplant Surgery Benefit• Exclusions• Optional Riders



The Protector individual disability income insurance

Guaranteed Renewable

Guaranteed renewable to age 66/67. The Standard cannot change any part of the policy, except premiums after the policy is three years old, as long as the premium is paid by the end of each grace period.




Renewable for Life

The insureds may ask to continue the policy beyond the termination date if they are working at least 30 hours per week and not disabled at the time of the request.

Only the total disability benefit may be available and the premium may change. The maximum benefit period is limited to 24 months before age 75, and to 12 months after age 75.




Definition of total disability

Because of the insured’s injury or sickness:• the insured is unable to perform the substantial and material

duties of his regular occupation; and• the insured is not engaged in any other gainful occupation in

which he could reasonable be expected to perform satisfactorily in light of his education, training, experience, and physical and mental capacity




Definition of presumptive total disability

The insured’s total and permanent loss, because of injury or sickness, of one of the following:•speech;•hearing in both ears, not restorable by hearing aids;•use of both hands;•use of both feet, or use of one hand and one foot;

or•Total and permanent loss of sight in both eyes. Both eyes must measure at or below 20/200, after reasonable efforts are made to correct vision, using the most advanced medically acceptable procedures and devices available.




Definition of continuous disability

Recurrent periods of disability from the same cause or causes are one period of continuous disability if separated by the insured’s recovery of six full months or less.Waiting period must be satisfied within the total number of consecutive days equal to:

2 times the waiting period shown on the policy data page, if 180 days or less,

or1½ times the waiting period shown on the policy data page, if

more than180 days.




Rehabilitation Benefit

The Standard will pay the reasonable costs of a rehabilitation program, approved by us, if the insured is actively participating in the program while receiving disability benefits.

For those costs to be paid by The Standard:• the insured must apply to The Standard in writing (unless we propose

a program); • accept in writing the conditions and goals of the

program approved.

The Standard will periodically review the insureds’ progress, and will continue to pay costs of the program as long as we believe it is helping the insureds return to their regular occupation.




Waiver of Premium Benefit

While the insured is disabled and after the earlier of the date benefits start or the 90th day of disability, The Standard will waive premiums due under the IDI policy. After completion of the waiting period, we will refund any premium paid after the date the disability began.



Cosmetic orTransplant Surgery Benefit

The Standard will consider the insured disabled if, more than six months after the policy is effective, the insured becomes disabled due to cosmetic or transplant surgery.





Exclusions from coverage

The Standard will not pay benefits for disability due to war.

• War means any:–war, declared or undeclared, whether civil or international;–act of war;–act incident to war;–insurrection; and–substantial armed conflict with organized forces of a

military nature.





The Standard will not pay benefits

• during the first 90 days of the insured’s disability due to pregnancy or childbirth.

• for disability caused or contributed to by the insured:– committing or attempting to commit an assault or felony;

or – actively participating in a violent disorder or riot. Actively

participating does not include the insured being at the scene of a violent disorder or riot while performing his official duties;





The Standard will not pay benefits for

• disability while the insured is confined for any reason to a penal or correctional institution;




Optional Riders

• Residual Disability Rider• Indexed Cost of Living Rider• Supplemental Social Insurance Rider• Future Purchase Option Rider• Noncancelable Rider• Own Occupation Rider



The ProtectorSM Optional Riders

5A

4A

3A

2A

A

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*

*The Own Occupation Rider is available for all 3A, 3P, 4A, 4P and 5A occupations except podiatrists and self-employed stockbrokers.


5A

4A

3A

2A

A

B

4P

3P




Definition of Residual Disability Residual disability means the insured is not totally disabled, but because of his injury or sickness:• his monthly earnings are reduced by 20% or more of his indexed prior

monthly earnings; and• he is able:

– to do some, but not all, of the substantial and material duties of his regular occupation; or

–he is able to do all of the substantial and material duties of his regular occupation, but not for as long a time or as effectively as he did immediately prior to his injury or sickness.




Indexed Cost of Living Rider (ICOL)

The ICOL Rider helps provide a cushion against inflation during a continuous disability.

This rider pays an additional benefit after 365 days of continuous disability based on the average annual change in the Consumer Price Index for All Urban Wage Earners (CPI-W), subject to a cap of 6%. Payment is subject to the policy’s benefit period and other requirements.

The amount payable under the rider will not decrease even if the CPI-W decreases.




Supplemental Social Insurance Rider

This rider pays a benefit if the policy’s total disability benefit is payable and no legislated benefits are payable for the disability.

The insured must apply for legislated benefits for which he may be eligible and meet other requirements in the rider.

A reduced benefit is available if legislated benefits are payable that are less than the rider benefit amount.




Future Purchase Option Rider

This rider allows for the purchaseof benefit increases on each policy anniversary subject only to financial underwriting.

Evidence of the insured’s good health is not required to purchase an increase.




Noncancelable Policy Rider

This rider* changes the policy and all riders made part of the policy

from guaranteed renewable to noncancelable and guaranteed renewable.

The Standard cannot change the policy terms or premiums until the termination date.

This rider also changes the policy to provide that, if the maximum benefit period is longer than five years and the insured become eligible for the benefit for presumptive total disability, the total disability payments will be payable for the insured’s lifetime as long as the presumptive disability continues.

*Not available to all occupation classes.




Own Occupation Rider

This rider changes the definition of Total Disability/Totally Disabled.

Because of Your Injury or Sickness:

You are unable to perform the substantial and material duties of Your Regular Occupation; and

You are not engaged in any other gainful occupation in which You could reasonably be expected to perform satisfactorily in light of Your education, training, experience, and physical and mental capacity.

Removesthis language from the definition of Total Disability

11399PPT (11/09)

There are three kinds of disability




There are three kinds of disability

Most people, when asked to visualize a disabling event in their minds, will picture a car accident causing paralysis.

Even though it is most likely to be imagined, it is the least likely to occur.



There are three types of disability (continued)

All disabilities can fit into one or all of three kinds of disabilities.

11399PPT (11/09)

Disability claims at The StandardWe take good care of your customers




We take good care of your customers

• The Standard’s claims management approach is responsive, ethical and fair.

• Our philosophy is geared toward helping people return to work.

• We understand that claimants need both financial and emotional support.

• We understand that people who become disabled prefer to lead full, productive lives.

• The Standard teams medical and rehabilitation experts with claims specialists to help customers during their recovery.



We take good care of your customers (continued)

• The Standard gladly pays people who are disabled under the policy terms and entitled to policy benefits.

• The Standard makes the claims experience as easy and clear as possible.

• The goal of the employees at The Standard is to treat customers with the same level of service they wish for themselves and their families.

• We know that behind each claim is a person, and we treat everyone with respect and empathy.

• By communicating simply, directly and professionally we honor people’s need to understand how a claims decision was reached.

11399PPT (11/09)

About The Standard




About The Standard

Standard Insurance Company• Keeping its promises since 1906• Ranks among the top ten disability insurance companies in the nation• Rated first among its peers with high levels of

customer service, a sound liquidity position and strong financial flexibility.1

• Rated by consumers as having higher than industry average satisfaction (between 92% and 95%) at claims time.2

1. Peer Comparison: U.S. Specialty Employee Benefit Insurers. Standard & Poor’s Rating services.

2. JHA Claimant research. 2008.



About The Standard

Standard Insurance Company Financial Strength Ratings

AA- (Very Strong )4th of 20 rankings Standard & Poor’s

A1 (Good) 5th of 21 rankings Moody’s

A (Excellent) 3rd of 13 rankings A.M. Best Company

*As of July 2009.



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11399PPT (11/09) Individual disability income insurance at The Standard For producer use only. Not...

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