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Complete DI Changing the Market – One Case at a Time!
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Complete DIComplete DIChanging the Market – One Case at a
Time!Changing the Market – One Case at a
Time!
What is Complete DI?What is Complete DI?
A Fundamental Change in the Way
You Present Disability Income Solutions to
your Client!
A Fundamental Change in the Way
You Present Disability Income Solutions to
your Client!
The “Old” ParadigmThe “Old” Paradigm
Disability Insurance Treated as a Commodity!
Disability Insurance Treated as a Commodity!
What is a Commodity?What is a Commodity?
Commodity – “…a product which is interchangeable with another product of the same type…”
Commodity – “…a product which is interchangeable with another product of the same type…”
The Commodity SlideThe Commodity Slide
Stage One
High Prices & High Profits
Stage Tw
o – The Slide
Stage Three
Rock Bottom Prices & Low
Profits
Instant SurveyInstant Survey
Do Your Clients View Disability Insurance As A Commodity?
Yes - ??%
No - ??%
Do Your Clients View Disability Insurance As A Commodity?
Yes - ??%
No - ??%
ExampleExample
Mr. Smith, you have a solid group disability income plan which provides 60% of income to your age 65. You have an age 65 own occupation definition for a low rate of .25 cents per $100.
So…let’s talk about your Medical Renewal…
Mr. Smith, you have a solid group disability income plan which provides 60% of income to your age 65. You have an age 65 own occupation definition for a low rate of .25 cents per $100.
So…let’s talk about your Medical Renewal…
Why Is This Important?Why Is This Important?
Because People DO Become Disabled!
43% of all individuals age 40 will have a long term disability event (90 days or longer) by age 65.
Field Guide to Estate Planning, Business Planning, & Employee Benefits
National Underwriter
Because People DO Become Disabled!
43% of all individuals age 40 will have a long term disability event (90 days or longer) by age 65.
Field Guide to Estate Planning, Business Planning, & Employee Benefits
National Underwriter
In-Complete DIIn-Complete DI
The Traditional Plan and Process Delivers In-Complete Results!
The Traditional Plan and Process Delivers In-Complete Results!
Disability Contract BasicsDisability Contract Basics
Most Don’t Understand the Importance of the Basics
How Do I Qualify?
How Soon Do Benefits Start?
How Long Will Benefits Last?
How Much Will I Get?
Most Don’t Understand the Importance of the Basics
How Do I Qualify?
How Soon Do Benefits Start?
How Long Will Benefits Last?
How Much Will I Get?
How Do I Qualify?How Do I Qualify?
Pre-Existing ConditionUnderwritten or Guaranteed
Issue?Exclusions and/or LimitationsDefinitions of Disability
“First” Definition“Second” Definition
Pre-Existing ConditionUnderwritten or Guaranteed
Issue?Exclusions and/or LimitationsDefinitions of Disability
“First” Definition“Second” Definition
How Do I Qualify?How Do I Qualify?
Definitions of Disability Either Occupation or Earnings Test Both Occupation and Earnings Test Occupation Loss Only Earnings Loss Only
How Long Does The “First” Definition Last?
Definitions of Disability Either Occupation or Earnings Test Both Occupation and Earnings Test Occupation Loss Only Earnings Loss Only
How Long Does The “First” Definition Last?
How Soon Do Benefits Start?
How Soon Do Benefits Start?
Qualifying Periods
Consecutive Days
Trial Return to Work Days
Partial Disability
Zero-Day Residual
Qualifying Periods
Consecutive Days
Trial Return to Work Days
Partial Disability
Zero-Day Residual
How Long Will Benefits Last?
How Long Will Benefits Last?
“First Definition” Transitions to “Second Definition” of Disability Limited Benefits for Special Conditions Age 65 or SSNRA Maximum Capacity Language Mandated Rehabilitation Return to Work
“First Definition” Transitions to “Second Definition” of Disability Limited Benefits for Special Conditions Age 65 or SSNRA Maximum Capacity Language Mandated Rehabilitation Return to Work
How Much Will I Get?How Much Will I Get?
Rate of Benefit / Contract Amount Definition of Earnings Taxation of Benefit Additional Degree of Disability Benefits Retirement Replacement Cost of Living Adjustments
Rate of Benefit / Contract Amount Definition of Earnings Taxation of Benefit Additional Degree of Disability Benefits Retirement Replacement Cost of Living Adjustments
Complete DIComplete DI
You Must Consider More Than Price and a Short “Summary” of Plan Benefits!
You Must Consider More Than Price and a Short “Summary” of Plan Benefits!
Why DI Can’t Be Sold On Price!
Why DI Can’t Be Sold On Price!
Choices – Marketplace is Full of Carriers Who Quote on Rate Only. On a Scale of 1-10 Most Benefit Brokers Rank Their Knowledge of Health Insurance Between 8-10. Most Benefit Brokers Rank Their Knowledge of Disability Insurance Between 5-7.
Choices – Marketplace is Full of Carriers Who Quote on Rate Only. On a Scale of 1-10 Most Benefit Brokers Rank Their Knowledge of Health Insurance Between 8-10. Most Benefit Brokers Rank Their Knowledge of Disability Insurance Between 5-7.
Instant SurveyInstant Survey
What is the Most Important Part of
a Disability Contract?
What is the Most Important Part of
a Disability Contract?
Instant SurveyInstant Survey
Own Occupation Period Benefit Duration
Maximum Benefit Amount Definition of Disability
Price Elimination Period Benefit Percentage
Taxability of Benefits
Own Occupation Period Benefit Duration
Maximum Benefit Amount Definition of Disability
Price Elimination Period Benefit Percentage
Taxability of Benefits
Instant SurveyInstant Survey
Own Occupation Period - % Benefit Duration - %
Maximum Benefit Amount - % Definition of Disability - %
Price - % Elimination Period - % Benefit Percentage - %
Taxability of Benefits - %
Own Occupation Period - % Benefit Duration - %
Maximum Benefit Amount - % Definition of Disability - %
Price - % Elimination Period - % Benefit Percentage - %
Taxability of Benefits - %
Definition of DisabilityDefinition of Disability
Every Feature of a Disability Contract Hinges on the Definition of Disability.
Nothing Else in the Contract is Relevant Unless the Claimant is Considered Disabled by the Insurance Carrier.
Every Feature of a Disability Contract Hinges on the Definition of Disability.
Nothing Else in the Contract is Relevant Unless the Claimant is Considered Disabled by the Insurance Carrier.
Caveat EmptorCaveat Emptor
Definition – “Let the Buyer Beware”
Assumption is That the Insurance Carrier is “Hiding Something” and not Trying to Not Fulfill Its Promise!
Definition – “Let the Buyer Beware”
Assumption is That the Insurance Carrier is “Hiding Something” and not Trying to Not Fulfill Its Promise!
More Accurate MeaningMore Accurate Meaning
“Let the Buyer BE AWARE! Most Insurance Carriers Perform to
the Exact Definitions of the Contract. It is the Producers Responsibility to
Fully Explore and Explain the Product and the Process!
“Let the Buyer BE AWARE! Most Insurance Carriers Perform to
the Exact Definitions of the Contract. It is the Producers Responsibility to
Fully Explore and Explain the Product and the Process!
Words Have MeaningWords Have Meaning
Disability is the inability of the insured to perform a substantial and material duties of his/her occupation
Disability is the inability of the insured to perform a substantial and material duties of his/her occupation
Words Have MeaningWords Have Meaning
Disability is the inability of the insured to perform the substantial and material duties of his/her occupation
Disability is the inability of the insured to perform the substantial and material duties of his/her occupation
Words Have MeaningWords Have Meaning
Disability is the inability of the insured to perform all the substantial and material duties of his/her occupation
Disability is the inability of the insured to perform all the substantial and material duties of his/her occupation
Words Have MeaningWords Have Meaning
Disability is the inability of the insured to perform all the substantial and material duties of his/her occupation and have a 20% loss of earnings due to the sickness or injury
Disability is the inability of the insured to perform all the substantial and material duties of his/her occupation and have a 20% loss of earnings due to the sickness or injury
Words Have MeaningWords Have Meaning
Disability is the inability of the insured to perform all the substantial and material duties of his/her occupation or have a 20% loss of earnings due to the sickness or injury
Disability is the inability of the insured to perform all the substantial and material duties of his/her occupation or have a 20% loss of earnings due to the sickness or injury
Words Have MeaningWords Have Meaning
Basic Monthly Earnings, not including overtime pay, bonuses, and other compensation not received as basic wages or salary.
Basic Monthly Earnings, not including overtime pay, bonuses, and other compensation not received as basic wages or salary.
Words Have MeaningWords Have Meaning
Basic Monthly Earnings, including overtime pay, bonuses, and other compensation received during the prior full calendar year.
Basic Monthly Earnings, including overtime pay, bonuses, and other compensation received during the prior full calendar year.
Words Have MeaningWords Have Meaning
Basic Monthly Earnings, including overtime pay, bonuses, and other compensation received during the prior full calendar year, including the amount of any pre-tax deferrals.
Basic Monthly Earnings, including overtime pay, bonuses, and other compensation received during the prior full calendar year, including the amount of any pre-tax deferrals.
Words Have MeaningWords Have Meaning
Basic Monthly Earnings, including overtime pay, bonuses, and other compensation received during the prior full calendar year, including the amount of any pre-tax deferrals. For Principals of a Partnership, a monthly average or income reported on Schedule K-1.
Basic Monthly Earnings, including overtime pay, bonuses, and other compensation received during the prior full calendar year, including the amount of any pre-tax deferrals. For Principals of a Partnership, a monthly average or income reported on Schedule K-1.
Complete DIComplete DI
Instant SurveyInstant Survey
What’s the Highest Percentage of Your Client’s Income You Can Insure With
Disability Insurance?
What’s the Highest Percentage of Your Client’s Income You Can Insure With
Disability Insurance?
• 60% - ??%60% - ??%• 66 2/3% - ??%66 2/3% - ??%
• 70% - ??%70% - ??%• 85% - ??%85% - ??%
• 100% - ??%100% - ??%• 100% + - ??%100% + - ??%
The Problem
Annual Base Income
+Annual Bonus Income
=Total
Monthly Income
Net Monthly Income
Gross Group Monthly Benefit
Net Group Monthly Benefit
Percentage of Income
Replacement$50,000 $5,000 $4,583 $3,071 $2,500 $1,675 55%
$80,000 $8,000 $7,333 $4,913 $4,000 $2,680 55%
$100,000 $10,000 $9,167 $6,142 $5,000 $3,350 55%
$125,000 $12,500 $11,458 $7,677 $5,000 $3,350 44%
$150,000 $15,000 $13,750 $9,213 $5,000 $3,350 36%
$200,000 $20,000 $18,333 $12,283 $5,000 $3,350 27%
Assumes 33% tax bracket.
The Problem
Annual Base Income
+Annual Bonus Income
=Total
Monthly Income
Net Monthly Income
Gross Group Monthly Benefit
Net Group Monthly Benefit
Percentage of Income
Replacement$50,000 $5,000 $4,583 $3,071 $2,500 $1,675 55%
$80,000 $8,000 $7,333 $4,913 $4,000 $2,680 55%
$100,000 $10,000 $9,167 $6,142 $5,000 $3,350 55%
$125,000 $12,500 $11,458 $7,677 $5,000 $3,350 44%
$150,000 $15,000 $13,750 $9,213 $5,000 $3,350 36%
$200,000 $20,000 $18,333 $12,283 $5,000 $3,350 27%
Assumes 33% tax bracket.
The Typical In-Complete DI Plan
In addition ~ You will lose your benefits, contributions to retirement plans and more!
LTD Plan Benefits 60% of Salary to a maximum of $5,000 a month.
The Solution
Annual Base Income
+Annual Bonus Income
=Total
Monthly Income
Group Monthly Benefit
IDI BenefitCatastrophic
Benefit
Percentage of Income
Replacement$50,000 $5,000 $4,583 $2,500 $938 $1,146 100%
$80,000 $8,000 $7,333 $4,000 $1,500 $1,833 100%
$100,000 $10,000 $9,167 $5,000 $1,875 $2,292 100%
$125,000 $12,500 $11,458 $5,000 $3,594 $2,865 100%
$150,000 $15,000 $13,750 $5,000 $5,313 $3,438 100%
$200,000 $20,000 $18,333 $5,000 $8,750 $4,583 100%
The Solution
Annual Base Income
+Annual Bonus Income
=Total
Monthly Income
Group Monthly Benefit
IDI BenefitCatastrophic
Benefit
Percentage of Income
Replacement$50,000 $5,000 $4,583 $2,500 $938 $1,146 100%
$80,000 $8,000 $7,333 $4,000 $1,500 $1,833 100%
$100,000 $10,000 $9,167 $5,000 $1,875 $2,292 100%
$125,000 $12,500 $11,458 $5,000 $3,594 $2,865 100%
$150,000 $15,000 $13,750 $5,000 $5,313 $3,438 100%
$200,000 $20,000 $18,333 $5,000 $8,750 $4,583 100%
The Complete DI Plan Solution
The Complete DI Plan Replaces 100% of Cash Compensation for the Most Catastrophic Disability
LTD Plan Benefits 60% of Salary to a maximum of $5,000 a month.
Assumes 33% tax bracket.
In-Complete DIIn-Complete DI
The Traditional Plan and Process Delivers In-Complete Results!
The Traditional Plan and Process Delivers In-Complete Results!
Complete DIComplete DI
A Complete DI Plan and Process Delivers Complete Results!
A Complete DI Plan and Process Delivers Complete Results!
