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Complete DI

Complete DI. Changing the Market – One Case at a Time!. What is Complete DI?. A Fundamental Change in the Way You Present Disability Income Solutions to your Client!. The “Old” Paradigm. Disability Insurance Treated as a Commodity!. What is a Commodity?.

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Complete DI

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  1. Complete DI Changing the Market – One Case at a Time!

  2. What is Complete DI? A Fundamental Change in the Way You Present Disability Income Solutions to your Client!

  3. The “Old” Paradigm Disability Insurance Treated as a Commodity!

  4. What is a Commodity? Commodity – “…a product which is interchangeable with another product of the same type…”

  5. The Commodity Slide Stage One High Prices & High Profits Stage Two – The Slide Stage Three Rock Bottom Prices & Low Profits

  6. Instant Survey Do Your Clients View Disability Insurance As A Commodity? Yes - ??% No - ??%

  7. Example 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…

  8. 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 What Color is Your Envelope?

  9. In-Complete DI The Traditional Plan and Process Delivers In-Complete Results!

  10. Disability 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?

  11. How Do I Qualify? • Pre-Existing Condition • Underwritten or Guaranteed Issue? • Exclusions and/or Limitations • Definitions of Disability • “First” Definition • “Second” Definition

  12. 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?

  13. How Soon Do Benefits Start? • Qualifying Periods • Consecutive Days • Trial Return to Work Days • Partial Disability • Zero-Day Residual

  14. 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

  15. 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

  16. Complete DI You Must Consider More Than Price and a Short “Summary” of Plan Benefits! You Bet it Does! Does it Matter?

  17. 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.

  18. Instant Survey What is the Most Important Part of a Disability Contract?

  19. Instant Survey • Own Occupation Period • Benefit Duration • Maximum Benefit Amount • Definition of Disability • Price • Elimination Period • Benefit Percentage • Taxability of Benefits

  20. Instant Survey • Own Occupation Period - % • Benefit Duration - % • Maximum Benefit Amount - % • Definition of Disability - % • Price - % • Elimination Period - % • Benefit Percentage - % • Taxability of Benefits - %

  21. Definition 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.

  22. Caveat Emptor • Definition – “Let the Buyer Beware” • Assumption is That the Insurance Carrier is “Hiding Something” and not Trying to Not Fulfill Its Promise!

  23. More 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!

  24. Words Have Meaning Disability is the inability of the insured to perform a substantial and material duties of his/her occupation

  25. Words Have Meaning Disability is the inability of the insured to perform the substantial and material duties of his/her occupation

  26. Words Have Meaning Disability is the inability of the insured to perform all the substantial and material duties of his/her occupation

  27. Words 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

  28. Words 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

  29. Words Have Meaning Basic Monthly Earnings, not including overtime pay, bonuses, and other compensation not received as basic wages or salary.

  30. Words Have Meaning Basic Monthly Earnings, including overtime pay, bonuses, and other compensation received during the prior full calendar year.

  31. Words 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.

  32. Words 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.

  33. Complete DI

  34. Instant Survey What’s the Highest Percentage of Your Client’s Income You Can Insure With Disability Insurance? • 60% - ??% • 66 2/3% - ??% • 70% - ??% • 85% - ??% • 100% - ??% • 100% + - ??%

  35. The Typical In-Complete DI Plan LTD Plan Benefits 60% of Salary to a maximum of $5,000 a month. In addition ~ You will lose your benefits, contributions to retirement plans and more!

  36. The Complete DI Plan Solution WOW! LTD Plan Benefits 60% of Salary to a maximum of $5,000 a month. Assumes 33% tax bracket. The Complete DI Plan Replaces 100% of Cash Compensation for the Most Catastrophic Disability

  37. In-Complete DI The Traditional Plan and Process Delivers In-Complete Results!

  38. Complete DI A Complete DI Plan and Process Delivers Complete Results!

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