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State Cash Sickness Benefits Calculating DI issue amounts in states that provide benefits

State Cash Sickness Benefits Calculating DI issue amounts in states that provide benefits. Rhode Island New York New Jersey Hawaii California Puerto Rico Effective July 1, 2002. Massachusetts Mutual Life Insurance Company And affiliated companies, Springfield, MA 01111.

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State Cash Sickness Benefits Calculating DI issue amounts in states that provide benefits

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  1. State Cash Sickness BenefitsCalculating DI issue amounts in states that provide benefits • Rhode Island • New York • New Jersey • Hawaii • California • Puerto Rico Effective July 1, 2002 Massachusetts Mutual Life Insurance Company And affiliated companies, Springfield, MA 01111 For Producers Only

  2. RI, NY, NJ, HI, and PR We need to program around state provided benefits. How we do this will depend on: • whether there is existing Group LTD • when the MM benefits will begin For Producers Only

  3. Existing Group LTD RI, NY, NJ, HI and PR • Group LTD plans already offset for state benefits. A policy with the same or longer waiting period as the Group LTD needs no adjustment. • A policy with a shorter waiting period than the GLTD needs some adjustments. For Producers Only

  4. MM policy with a shorter waiting period than the existing GLTD (RI, NY, NJ, HI and PR) • 2A/2P and A occ classes with a 60 or 90 day wait needs to offset for the state cash benefit by using the Short Term Rider 1 • 3A/3D/3P, 4A or 5A occ classes with a 60 day wait needs to offset for the state cash benefit by using the Short Term Rider 1 For Producers Only

  5. No GLTDRI, NY, NJ, HI and PR • 2A/2P or A cases must purchase SIR which offsets for state benefits • Only 3A/3D/3P, 4A and 5A occ classes with a 60 day wait need to use the Short Term Rider 1 for the lower benefit amount For Producers Only

  6. RI, NY, NJ, HI and PR Cash State Benefit Offsets • HI = $1,584 • NJ = $1,776 • NY = $ 680 • PR = $ 452 • RI = $2,108 For Producers Only

  7. California Rules for State Cash Sickness Benefits California has two significant differences that require special rules to adjust for state benefits: • The state benefit is payable up to 1 year –twice as long as any other state • The SIR rider (that offsets for state benefits) is not approved for use in California For Producers Only

  8. California Rules with Group LTD • If waiting period is 60 or 90 days, then the state benefit of $1,960 also needs to be subtracted from the replacement ratio figure • If the GLTD starts the same as or before the MM policy, then no additional offset for state benefits is needed. For Producers Only

  9. California Rules without GLTD • For all occupation classes with a waiting period less than 365 days: • Subtract the State Cash benefit of $1,960 from the the Short Term Riders 1 and 2 (along with any other coverage in force) and have the higher benefit start at 365 days For Producers Only

  10. Discovery Not sure how to program around the state benefit? Our illustration system will do it for you! It will automatically adjust for any state benefit depending on the options selected. For Producers Only

  11. How Short Term Riders help your clients get more • Short Term Riders enables you to program around existing coverage – either Group LTD or even other individual or association coverage • If the existing coverage starts after the MassMutual policy, consider using the STR to provide a higher benefit for the full benefit period For Producers Only

  12. Any questions? For Producers Only

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