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Understanding Disability Insurance: CI Benefits and Client Perspectives

This article explores the relationship between critical illness (CI) and disability clients, emphasizing why full replacement is not achievable in many cases. It delves into the complexities of claims, the nature of human behavior, and the emotional aspects surrounding disability insurance. With insights on policy forms I H0920, I H0820, and I L0760, we provide an overview of product features, availability, and state-specific rates to help clients navigate their options effectively.

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Understanding Disability Insurance: CI Benefits and Client Perspectives

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  1. CI and the disability client DI: Why not 100% replacement? More CLAIMS LONGER claims Human nature of OTHER people Policy Form Nos. I H0920, I H0820, I L0760. Product and rider availability, features and rates may vary by state. H703-0413
  2. Group/individual disability income —usually a deal killer Is a critical illness insurance sale “My clients” versus people for whom ratio required Unfair, wrong, deserve Minimum standard for legit people with real claims “I have always been frustrated that good, honest people...”
  3. Disability income The perfect disability claim Designed to hurt i.e., $4,000/month after 91 days No paycheck for 4 months ($16,000) Short $1,000/month for one year ($12,000) FIRST $28,000 of CI only ensures NO PAYCUT to household dealing with cancer (no hotels, no prescriptions, no co-pays, etc.)
  4. Disability client “It might just be me, but I see a difference between…” Sore back and cancer Broken leg and stroke
  5. Critical illness and DI: the perfect match Think of disability insurance as the brakes on your car… Think of critical illness insurance as the airbags And DI writers love this: If I had to choose between the two cars, I would choose one with brakes…But most cars have both brakes and airbags now!
  6. CI and the quality accountant Question: How good is your accountant? The “better” a client feels their accountant is…the more likely they are short on their disability insurance and need some critical illness.
  7. DI and CI for blue collar Century+ Disability Income - $3,000(Male, age 40, non-tobacco, 90-day EP, To-Age-65) Your category (2A): $125/month Lawyer, Accountant (4A): $67/month Critical Illness - $100,000 You: $83/month Lawyer, Accountant: $83/month
  8. CI sales ideas And some occupations don’t allow your clients to purchase enough DI... Independent contractors or consultants Self-employed individuals Teachers Government employees Commissioned salespeople Some people can’t purchase DI protection because of their occupation... Homemakers Home-based business owners Professional athletes Packing industry workers Offshore oil and gas workers Writers/authors Actors Pilots Flight attendants Air traffic controllers
  9. GenRe/NACII survey Carriers developing CI because of agent demand No. 1 obstacle to sales is agent acceptance
  10. Century+ DI(Broker level)
  11. NonMed Term 350 – 20-yr term(Broker level)
  12. Century+ DI breakdown Male 71% Female 29% Tobacco 10% Non-tobacco 90% Standard 94% Substandard 6%
  13. Century+ DI breakdown Occupational Classes 1A: 11% 2A: 25% 3A: 30% 4A: 34% Age 19-29: 18% 30-39: 37% 40-49: 27% 50-60: 17%
  14. Century+ DI breakdown Elimination Period 30 day: 5% 60 day: 6% 90 day: 71% 180 day: 17% 365 day: 1% Benefit Period 1 year: 3% 2 year: 16% 5 year: 35% 10 year: 8% Age 65: 33% Age 67: 4%
  15. Century+ DI breakdown RidersClasses All1A+2A3A+4A Supplemental DI (SSDIOffset) 84% 83% 85% Residual 30% 24% 33% Automatic Increase (COLA) 26% 24% 27% Own Occupation 22% n/a 34% Retro Injury 20% 25% 18% Guaranteed Insurability 15% 16% 14% CAT 8% 15% 4% Return of Premium 4% 6% 3% Non-Can 1% n/a 2%
  16. Questions? The policies and riders in this presentation may contain reductions of benefits, limitations and exclusions. For complete details of coverage, please contact Assurity Life Insurance Company or ask to review the policy for more information. Policy Form Nos. I H0920, I H0820, I L0760. Product and rider availability, features and rates may vary by state. H703-0413
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