Create more sales with Guaranteed Standard Issue (GSI) Coming Sept. 26 – GSI Available on Two...

create more sales with Guaranteed Standard Issue (GSI)Coming Sept. 26 – GSI Available on Two Products

DI1579 10-13 For Producer use only. Not for use with clients.

1

disclosures

• In approved states, DInamic Foundation (forms 4501NC, 4502GR and 4503BOE) and DInamic FundamentalSM (form 4504LS) are issued by Ameritas Life Insurance Corp. located at 5900 O Street, Lincoln, NE 68510. In New York, DInamic Foundation (forms 5501-NC, 5502-GR and 5503-BOE) and DInamic FundamentalSM (form 5504-LS) are issued by Ameritas Life Insurance Corp. of New York located at 1350 Broadway, Suite 2201, New York, NY 10018. Policy and riders may vary and may not be available in all states.

• This information is provided by Ameritas®, which is a marketing name for subsidiaries of Ameritas Mutual Holding Company, including, but not limited to, Ameritas Life Insurance Corp., Ameritas Life Insurance Corp. of New York and Ameritas Investment Corp., member FINRA/SIPC. Ameritas Life Insurance Corp. is not licensed in New York. Each company is solely responsible for its own financial condition and contractual obligations. For more information about Ameritas®, visit ameritas.com.

• Guaranteed Standard Issue (GSI) programs may constitute ERISA plans. Please consult an attorney regarding ERISA requirements.

Ameritas® and the bison design are registered service marks of Ameritas Life Insurance Corp. Fulfilling life® is a registered service mark of affiliate Ameritas Holding Company. © 2013 Ameritas Mutual Holding Company


2

agenda

• Need for disability insurance

• Markets for GSI sales

• Why should one consider individual DI insurance?

• Advantages of GSI

• For an employer and employees

• DInamic Foundation product and Underwriting guidelines

• DInamic FundamentalSM product and Underwriting guidelines

• Quoting and Enrollment process

• Administration


3

need for disability insurance


• Chances out of 1,000 that at least one long-term (90 day) disability will occur before age 65

2012 Field Guide to Estate Planning, Business Planning & Employee Benefits, Donald F. Cady, 2012, National Underwriter Company

4



• Average Duration for Long-Term Disability

2012 Field Guide to Estate Planning, Business Planning and Employee Benefits, Donald F. Cady, 2012, National Underwriter Company

5


• Importance of Employees’ Financial Needs and Concerns

% Rating “Highly Important”

Having job security 84%

Making ends meet 80%

Having appropriate health insurance 79%

Having retirement savings last as long as you need 75%

Maintaining a healthy lifestyle 72%

Paying off/reducing household debt 68%

Reducing stress level and improving well-being 66%

Having financial security if disabled 63%

Needing to save for retirement 63%

Achieving balance between work and personal life 60%

Having financial plan to achieve major goals 53%

Having financial security in case of premature death 50%

Having to provide for long term care needs 33%

Having money for children’s education 30%

Prudential Study, Study of Employee Benefits; Today and beyond, 2011DI1579 9-13 For Producer use only. Not for use with clients.

6

markets for GSI

• DInamic Foundation

• Nearly any industry with at least 5 key employees in white-collar occupations

• Current clients

• 401(k), Deferred compensation, Group LTD or other employee benefits

• Closely held companies

• Accountants, architects, attorneys, computer industry, consultants, engineers, corporate executives, hospital and university administrators, optometrists and professional services


7

markets for GSI

• DInamic FundamentalSM – for middle income earners ($40,000-100,000)

• May include grey- or blue-collar employees to whom the employer wants to offer coverage – either paid for by employer or on a voluntary employee paid basis

• Municipalities

• Any business that may not currently offer group LTD to its employees

• Occupations that may not typically qualify for DInamic Foundation GSI offer – those classified as 2A, A or B


8

why consider individual DI?

• Individually owned and portable policy

• Choice of Noncancelable (NC) or Guaranteed Renewable (GR) policy that provides total disability coverage and strong contractual advantages over group LTD

• Flexibility in plan designs

• Level premiums to age 65

• Significant multi-life premium discounts available


9

advantages of GSI programs

• For the employer:

• Can carve out employees by classification

• Helps recruit and retain valuable employees

• Business won’t bear the burden of compensating a disabled employee

• Can be employer paid or voluntary

• Flexibility in plan designs

• Ease of doing business


10

advantages of GSI programs

• For the employee:

• Strong contractual provisions

• Individually owned and portable

• Multi-life discounts available

• Protecting most valuable asset – income!

• Streamlined underwriting


11

DInamic Foundation

• Choice of Noncancelable (NC) or Guaranteed Renewable (GR) policy

• Occupational classes 6A-3A

• No medical or dental occupations except for small animal veterinarians (resident programs will be considered)

• Issue ages 18+

• $18,000 annual income required

• Employer paid requires minimum of 5 lives

• Voluntary requires greater of 10 lives or 25% participation

• Core/Buy-Ups available


12

DInamic Foundation

• 15-30% premium discounts from unisex rates (based on group demographics)

• Additional benefit riders available

• Enhanced or Basic Residual, Social Insurance Substitute, 6% Compounded or 3% Simple COLA and Catastrophic Disability

• Choice of definition of total disability

• Own Occ, Own Occ and Not Working, or 5-Year Own Occ then Not Working (for Class 3A only)

• Liberal maximum benefit amounts


13

DInamic Foundation

• Maximum benefit periods up to age 70

• Elimination periods range from 90 to 730 days (subject to state availability)

• Policy exclusions include war or acts of war, self-inflicted injury, criminal activity and termination/suspension of license

• For employees age 61-64, 2 year Benefit Period

• For employees ages 65+, 90-day elimination and 1-year benefit periods are required


14

DInamic Foundation GSI Discounts


• Employer paid

• 15% - under 10 lives

• 20% - 10-49 lives

• 25% - 50-99 lives

• 30% - 100+ lives

• Employee paid

• 15% - 10-49 eligible lives



• 30% - 300+ eligible lives

• Core/Buy-Up plans (based on core)

• 20% - 10-49 lives

• 25% - 50-99 lives

• 30% - 100+ lives

15

underwriting guidelines – DInamic Foundation

• Employer Paid

• 100% participation of all eligible employees by classification

• Minimum number of 5 lives required

• W-2 employees working 30+ hours/week are eligible; 1099 employees may be eligible

• Family content less than 50% of group

• Residual (basic and enhanced), CAT, SIS, and COLA (for 10+ lives) riders are available

• Pre-ex is 6/12 at 5-20 lives


16


• Employer Paid

• Mental/Nervous and Drug/Alcohol Limitations

• 5 to 20 Lives:

• 24 months MNDA coverage

• 21+ Lives:

• Non-Can – 60 months or equal to Benefit Period also available

• Guar. Ren. – Equal to Benefit Period


17


• Employee Paid

• Minimum number of lives required is the greater of:

• 10 lives; or

• 25% participation of all eligible employees

• Standard Pre-Ex Limitations

• 12/12 for under 50 lives

• 3/12 for 50+ lives

• Residual (basic and enhanced), CAT, SIS, and COLA riders are available

• MNDA – 24 months or 60 months (Non-Can only)


18

DInamic FundamentalSM

• Benefit amount is one times annual earnings, rounded to the next $5,000

• Minimum benefit is $25,000

• Maximum benefit is $100,000

• Choice of a single lump sum payment or six equal monthly payments (choice is made at time of claim)

• $18,000 minimum annual income required


19


• Guaranteed Renewable to age 65

• Issue ages 18-64

• Benefits are payable for total disability only

• No additional benefit riders

• Covers actual duties performed in occupation, including manual duties

• Minimum number of 5 lives required for Employer paid cases


20


• Benefits are payable when disability prevents insured from perform material/substantial duties of any occupation for which he/she is reasonably suited based on education, training and experience

• Total disability must be expected to last at least 365 days

• No benefits are payable for residual/partial disabilities

• There is no elimination period, but insured must survive the disability by 30 days

• 6/12 Pre-existing condition limitation


21


• Policy exclusions include war or acts of war, self-inflicted injury, criminal activity and termination/suspension of license

• Benefits for mental/nervous disorders, alcoholism and/or drug abuse are limited to one-half of the total disability benefit, unless insured is expected to be confined to a hospital for at least 365 days due to the condition

• Some restricted occupations, such as seasonal occs, professional athletes, occs with duties that include severe environmental, chemical or radioactive exposure, hazardous duties, etc.


22

DI Fundamental GSI Discounts

• Premium discounts - DInamic FundamentalSM

• Employer paid

• 5% - under 10 lives

• 10% - 10+ lives

• Employee paid

• 5% - under 75 eligible employees

• 10% - 75+ eligible employees


23

underwriting guidelines – DInamic FundamentalSM

• Employer paid

• 100% participation (with minimum of 5 lives)

• Maximum offer is 1x annual earnings

• Up to $50,000 for 5-9 lives

• Up to $100,000 for 10+ lives

• Occupational classes are 1L and 2L

• Determined by % of manual duties performed in occupation

• No additional benefit riders are available


24


• Employer paid

• Medical occupations are ineligible


• All full-time W-2 employees working at least 30 hours per week are eligible; 1099 employees may be eligible

• Business must have 2 years of stability


25


• Employee paid

• Groups must have a minimum of 10 eligible employees

• Requires greater of 10 lives or 25% participation of all eligible employees

• Maximum offer is 1x annual earnings, up to $100,000

• Occupational classes are 1L and 2L

• No additional benefit riders are available


26


• Employee paid

• Medical occupations are ineligible


• All full-time W-2 employees working at least 30 hours per week are eligible; 1099 employees may be eligible

• Some restricted occupations (as previously mentioned)

• Business must have 2 years of stability


27


• Layering on top of GSI Foundation

• Guidelines to follow:

• One times earnings on all employees (new and existing) to ensure appropriate spread of risk

• Employer-paid, or require 100% participation

• 2:1 ratio of Fundamental new applications to existing Foundation policies


28

the quoting process

• Two things are needed to request a GSI quote:

• Completed Request for Proposal (RFP) form

• Include a complete electronic census (Excel file) of all employees including:

• Name

• Date of birth

• Gender

• Home address

• Job title and duties, if possible


29

the quoting process (continued)

• Annualized base income

• Bonus or commission – 2-year history (not the average) needed for variable income

• Details of any group LTD or other individual DI coverage in force

• LTD booklet preferred

• Send information directly to your GSI Director.


30

the quoting process (continued)

• Quotes are prepared by GSI Team only

• What you will receive with your GSI offer

• Written proposal explaining how the GSI plan works

• This includes details of the plan design, class or classes of eligible employees, and what provisions are offered to each class

• Also includes a composite spreadsheet that shows the benefit and premium (cost) for each eligible employee


31

the enrollment process

• What you need to do

• Have employer sign the GSI offer letter

• Decide on enrollment period and effective date

• Schedule call with GSI Regional Director to discuss implementation

• Submit paperwork to GSI Regional Director

• For employer paid coverage, personalized enrollment materials are provided

• Each eligible employee completes a short form application

• Completed applications should be returned with a check for the first month’s premium


32

the enrollment process

• What you need to do (continued)

• For voluntary plans, you will receive personalized enrollment kits that

• Explain each employee’s opportunity to apply for coverage

• Show each employee’s premium

• Allow employees to accept or reject the coverage

• For fully underwritten buy-up (both employer paid and voluntary) cases

• For coverage amounts above the GSI offer, employees complete fully underwritten DI application

• If both GSI and fully underwritten amounts are issued, employees receive two separate policies


33

the underwriting process

• No blood or urine tests and no paramedical exams are required

• No other additional medical requirements are necessary

• No financial documentation required other than a census provided by employer


34

the underwriting process

• When using DInamic FundamentalSM, there is no coordination with other DI coverage when determining the benefit amount

• Applications for both Foundation and Fundamental are either accepted or rejected based on gatekeeper question(s) and no premium ratings are used


35

administration

• You receive effective administrative support at every step of the process

• Quoting & Implementation plan materials (from GSI Regional Director)

• Enrollment

• Billing

• Policy changes and service

• Claims

• Annual Review


36

administration

• Billing options

• Employer paid

• Monthly list bill is preferred method

• Voluntary

• Monthly list bill with premium payroll deducted or Electronic Funds Transfer (EFT) from each employee’s bank account

• EFT may be used as long as employees are paying 100% of the premium


37

administration

• Changes

• New hires

• Send new hire census information to the GSI sales support team to have enrollment kits and premiums prepared

• Employer paid

• All new hires must apply for GSI coverage within 60 days of eligibility

• Voluntary

• Each new hire must enroll or waive coverage within 60 days of eligibility


38

administration

• Changes

• Terminations

• Employer should notify Ameritas asking to remove a terminating employee from the list bill

• This is done by crossing out the employee’s name and indicating termination on the monthly list bill

• If it’s a voluntary case using EFT, no notification is necessary

• Employee may keep coverage in force by converting to an individual billing mode

• All discounts remain in place

• Insured should contact Individual Client Services at 800-319-6901 to have the policy changed to an individual billing mode


39

questions?

• To discuss a potential GSI case, contact your GSI Regional Director or GSI sales support team at 800-825-1551.


40

Date post:	15-Dec-2015
Category:	Documents
Upload:	cristopher-best
View:	217 times
Download:	3 times

Create more sales with Guaranteed Standard Issue (GSI) Coming Sept. 26 – GSI Available on Two...

Documents