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CPS Horizon DI

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The Advantages Of A Full Product Portfolio

As you know, no two clients are the same. They have unique financial situations, diverse needs and different occupations.

Luckily, one of our strategic carriers offers a comprehensive DI portfolio that offers a fit for every one of your client’s individual needs.

This product portfolio includes Accident Only, Short-Term Disability (accident/sickness), Long-Term Disability (accident/sickness) and Business Operating Expense.
 
In addition, there are numerous optional riders you can add to tailor an income protection plan to meet the needs of your clients.
 
Additional riders include:
  • Critical Illness Benefit
  • Hospital Confinement Benefit
  • Return of Premium Rider
  • Extended Own Occupation
  • Future Insurability Option
  • Extended Proportionate Disability Benefits
For more information about developing a plan tailored to your client’s needs, contact your Disability Income Insurance Specialist today.
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Are You Interested In A Guaranteed 5.82% Return On Investment?

Clients purchase insurance to protect themselves and their families from life’s unknowns.

With Disability Insurance, clients can sleep through the night knowing that if they were to wake up sick or hurt – financially, they’d be okay.

But what happens when your clients remain healthy throughout the entirety of their working years? Clients would have been paying premiums for years just for peace of mind – which, as you well know, is not always an easy ‘return on investment’ to sell.
 
Income Protection Plans are available with a 100% return of premiums paid. Meaning, that if your clients didn’t use it, they wouldn’t lose it – they could have all of their premiums returned, income-tax free.
 
Here’s How It Works
 
A 39 year old male, private school Principal earning $80,000 annually qualifies for a plan that would pay him $3,800 monthly (tax-free) in event of an injury or illness. His monthly premium is $88.13 per month, with his total premium paid reaching $28,041 at age 67.
 
  • If he does not place a claim throughout the life of his policy, the $28,041 would have paid for his protection and peace of mind.
  • However, if he adds the Return Of Premium Advantage to his plan – his monthly premium would be $146.30 – BUT he would receive a check for a tax-free amount of $46,549 at the end of his policy, assuming no claims placed.
That is the investment return equivalent of 5.82% Guaranteed* for an additional $58.17 on his monthly premium.
 
And there’s more – even if your clients are disabled for a short period and only temporarily receive benefits, all of their premiums will be returned, less any benefits they receive.
 
At age 67, your clients can also select a refund option that works best for their financial plans. Their returns can be taken in cash, left with the carrier to accrue interest, paid in installments or annuitized, or even paid out over their lifetime.
 
If you have clients who are reluctant to purchase Individual DI coverage because they are concerned they will be paying for something they will never use – now is the time to reach out. Offer them the valuable coverage they need and peace of mind they want. Contact your DI Sales Rep for more information.
 
*The IRR will vary subject to clients age, occupation and benefit amount, and is not available in all states. The ROP is not an investment and should not be compared to any specific investments, securities or other assets with value.
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Integrate Critical Illness with Your Disability Income Case Design

With steadily and rapidly increasing health insurance premiums today’s consumers and employers have adapted as best they can.  The usual result is more out of pocket expenses for individuals in the form of higher deductibles and co-pays. 

This has become a necessity to keep premiums as affordable as possible.  It’s not unusual today to see health insurance deductibles of $5,000, $7,500, or even $10,000. 

The government attempt to soften the blow for tax payers has been the advent of HSA (Health Spending Accounts) plans.  These are a combination of a High Deductible Health Plan (HDHP) and a separate custodial savings account for future medical expenses.

With or without an HSA plan, a serious medical issue could result in a crippling out of pocket expense costing thousands of dollars.  This would financially decimate many people.

Our team has a very affordable solution to this very serious problem and risk in the form of the new critical illness rider. 

This benefit will pay a lump sum payment up to $50,000 in the event of certain medical conditions such as cancer, heart attack, stoke, and up to 12 additional major sicknesses.  There is no need to satisfy the elimination period to qualify for benefits. 

It can be issued on express issue basis on our Short-Term Disability Income (DI) products, and is available on our Long-Term DI plans too.  The value is high and the premiums are low.  People recognize their exposure and will be glad you offered them a solution!

Please contact the your Disability Income Specialist for more details and a case design, customized to your client’s needs.

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A DI Scenario To Share With Your Clients

Let’s suppose you are the primary provider for your family, which depends completely on your income to support all of its household needs.
 
Consider this:
 
Recently, you’ve been hunting for a better job and now there are two offers on the table:
  • Your first offer comes from an employer who will pay you $100,000 a year, but you must personally assume the risk associated with suffering a disabling injury or illness. If, at age 35, you get sick or hurt, your lost earnings could amount to as much as $5.2 million dollars assuming only 3% annual increases over your working career.
  • The second offer comes from a different company that will pay you $98,000 a year salary and provide a guaranteed income benefit of $65,000 annually in the event you suffer a long-term injury or illness that prevents you from working. If you become disabled at age 35 and are unable to return to work, those benefits could equal as much as $2.2 million.

The Council for Disability Awareness statistics show 1 in 4 of today’s 22 year-olds will become disabled before they retire and that the average long term disability work absence is 2 ½ years.

Now you are aware of the disability statistics, I am certain you recognize the value the second employer’s offer, and would accept, and are glad to have the choice to have the protection for you and your family.
 
Our job as advisors:
  • Help educate our customers about the risks associated with being sick or hurt and unable to go to work.
  • Give our customers a chance to vote on whether they would like to hand off that risk to an insurance company.
Over 100 million working Americans don’t have private disability coverage and I suspect most of them have never been given a chance to vote. Help your clients make the right decision.
 
Contact your Disability Income Insurance Specialists at today for more information on these types of Disability Income Insurance scenarios and more.
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A Cross Selling Opportunity That Often Goes Overlooked

With medical advancements, people are able to survive critical illnesses which may in the past have resulted in a death. While your clients can rest easy knowing they have a higher chance of survival if they receive an unsettling diagnosis – they also have to afford living with the condition, which can create a severe financial strain if they are not properly covered.

For clients who are looking to protect themselves from the financial burden medical expenses would bring, there is Critical Illness Insurance.

Critical Illness Insurance offers a tax-free lump sum payment on first diagnosis of any one of a list of serious illnesses – including cancer, heart attacks, or stroke.
 
With comprehensive benefit plans and affordable costs – you could find coverage to fit any client’s budget, with benefits up to $500,000. For a total of $57 a month, a female, age 45 could receive a $50,000 lifetime benefit with the option to choose 10-15-20- or even 30-year coverage periods.
 
With Critical Illness Insurance, your clients’ premium dollars are, in essence, being put into a safety deposit box, which can be collected in one of three ways:
  1. The policy will pay the face value in the event your client is diagnosed with one of the 12 covered illnesses, including cognitive impairment or Alzheimer’s Disease
  2. The policy will pay the face value to your beneficiary in the event your client passes from one of the covered illnesses
  3. 100% of all premiums paid towards the plan will be returned to the beneficiary as a tax-free death benefit if your client passes for any other reason
While most critical illness policies have a reduction of benefit at age 65 – we have contracts that extend the full benefits out to age 70. In addition, any benefits after age 70 would still pay a full benefit for cognitive impairment or Alzheimer’s Disease.
 
Traditional health insurance plans, while the most common form of protection, will only cover hospital and pharmaceutical expenses. However, additional costs, such as insurance deductibles, childcare, insurance premiums, and short-term home health care would be billed directly to your client – who should be recovering, not stressing about how they will pay the bills.
 
Critical Illness Insurance is one of the best kept secrets in the industry and provides advisors a great opportunity right now to meet more clients, help more families and increase sales.
 
Look to your clients with a family history of Cancer, Heart Disease, or Hypertension. They are very likely to be interested in purchasing protection.
 
The likelihood of surviving a critical illness grows every year, as does the threat of being diagnosed with one. Contact your Disability Insurance Specialist for detailed information about a plan that meets each of your clients’ needs and budget.
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5 Tips to Start the Income Protection Conversation

To boost your Individual Disability Insurance (IDI) success, try these 5 tips to emphasize how IDI can provide much-needed income protection for your clients.
 
Focus on the Need, Not the Solution
 
Your clients likely don’t know why they need IDI and what it will do for them. Start with the basics – it provides income in the very real chance of a disabling injury or illness – and save the policy details for later.
 
Tell Stories to Make It Real
 
Most clients don’t believe disabilities will happen to them. They do believe they could get sick or hurt. Bring the risk to life with real life examples, such as being diagnosed with cancer or experiencing a back injury that prevents them from working and earning income.
 
Compare IDI with More Familiar Insurance Offerings
 
Clients understand the need for Auto or Homeowners Insurance to protect them. Explain that if they don’t have IDI to protect their ability to earn and income, they could lose their homes, cars, and lifestyle when they are unable to work.
 
Stick to the Facts
 
Illnesses like Cancer, Heart Attack, or Diabetes cause the majority of long-term disabilities, encourage clients to secure the most fundamental aspect of a financial plan – income.
 
Position IDI as the foundation of their Financial Plan
 
Financial planning is pointless if your clients lose the ability to earn an income to fund their plan. IDI can help ensure access to income if they unexpectedly are unable to work due to an injury or illness.
 
When selling IDI, clients may shy away from conversations about disability, but will understand and engage in conversations about loss of income. Helping clients make the connection between income protection and IDI could go a long way toward growing your business.
 
Contact your Disability Specialist at (949) 863-0700 Option 4 to learn more about how to position IDI as much needed income protection.
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$50M Key Person Disability Placement

Capital Management Firm Case Study
 
Client:
 
A Southern California based Asset Management & Investment firm managing a portfolio of $17 billion.
 
Situation:
 
The CEO wears many important hats—CEO, President, Chief Investment Officer, Market Strategist—as well as overseeing all the firm’s U.S. equity and hedge fund strategies. In the past 10 years, the firm’s assets under management have risen from $3.5 billion to $17 billion dollars, thus elevating the overall importance of the key person’s responsibilities.
 
Assessment:
 
Chief Investment Officers in the hedge fund universe are unique human capital assets. Investors invest in a fund based largely on performance, which is attributed to the CEO. In the event of a serious disability, cash would be needed to retrain key staff as well as manage the winding down of the fund if a permanent disability were to strike. With the obligation of succession planning resting on the shoulders of the Board of Directors, the Board saw a need to initiate additional coverage in the event the CEO was no longer able to perform his duties. The Board’s directive stipulated that an accelerated divestiture clause be built into their investment agreements, which would allow investors to accelerate the rate at which investors can pull their funds should the fund manager become incapacitated.
 
Solution:
 
A plan was designed for a $50 million key-person disability insurance policy, payable to the company in a lump sum after 12 months, should the CEO be unable to perform his duties.
 
Result:
 
With a reasonable level of key person disability insurance protection now in place, an additional succession planning strategy was created to manage the associated risks involved if the CIO were seriously disabled. A number of sub managers were also identified as critical, and additional protection was likewise sought for four additional investment managers.
 
To the Producer:
 
The premium on this case exceeds $200,000 annually plus taxes and fees. Please keep in mind, while it’s a great case and one we want to replicate often, many of the key person disability policies we write are your $2M/$5M/$10M placements, which are almost always cross-sold in conjunction with key person life insurance.
 
Have you identified an opportunity or two within your client base? Please contact your Disability Specialist for assistance, or with any questions you may have.
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Think Pink #BreastCancerAwarenessMonth

Think Pink. Think Compassion. Think Care. Think Ahead.
 
October is Breast Cancer Awareness Month. Agents and brokers, reach out and talk with your clients about what they can do today to make things easier should the unexpected happen.
 

While the chances of surviving a critical illness such as cancer, heart attack, or stroke are greater than ever, living with the condition can create severe financial hardships for many of our clients.

 
Traditional health insurance plans cover medical expenses, but costs such as insurance deductibles, child care, travel to and from treatment facilities, and short term home health care must often be paid out of pocket by the patient.
 
A real life story:
 
I recently spoke with a broker in Maryland who was diagnosed with Breast Cancer. She had the tumor removed successfully by a full mastectomy and had just finished up a bout of radiation and chemotherapy. But although she was feeling better, she was unable to work full time and the treatment affected her finances dramatically – business, household, and medical expenses continued to build up.
 
It’s stories like these that remind us just how invaluable a Critical Illness Policy can be.
 
Critical Illness Insurance pays a tax free lump sum payment on diagnosis of any one of a list of serious illnesses – including cancer, heart attacks, or stroke.
 
And since claims statistics suggest we are five times more likely to suffer from one of these than we are to die before we reach age 65, you can think of it as putting a client’s premium dollars in a safety deposit box.
 
If the client is diagnosed with one of the 12 covered illnesses the policy will pay the face value. If they die of one of the covered illnesses the policy will pay the face value to their beneficiary. If they die of any other reason, 100% of all premium paid will be returned to the beneficiary as tax free death benefit.
 
And there are plans to fit any budget. A Female, age 45, with $50,000 in lifetime coverage, can get coverage for only $57.46 a month. In addition to the lifetime version of the product, there is a choice of 10, 15, 20, & 30-year coverage periods.
 
Contact us today at for more information.
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It’s Not Disability Insurance – It’s Income Protection

Over the past couple years we’ve slightly modified the language around Income Protection.
 
The word disability is somewhat alarming and often evokes thoughts of being incapacitated or laid out in a hospital bed – it’s the reason we don’t refer to Life Insurance as Death Insurance.

Put in a more positive light, DI Insurance is really Income Protection for clients who want affordable, simple protection that can help cover bills should they be unable to work due to illness or injury.

Here are a few conversation starters you can use to help engage your clients in a conversation about Income Protection:
  • How would you protect your income should you be unable to work due to illness or injury?
  • How much do you have in savings?
  • Do you have enough set aside to make ends meet for a several months if you’re off work?
  • Where will the money come from when your savings runs out?
Why should you use these conversation starters?
They’re effective in closing the sale – although many clients recognize the need for Disability Insurance, the number of folks who actually get a policy is much lower.
 
Rather than trying to convince clients that they may be unable to work due to illness or injury (“spitting in the wind” as your grandpappy may say), selling DI as Income Protection focuses clients on how they would financially manage a disruption in pay – especially when the majority of Americans don’t have sufficient savings.
 
Lay out exactly how Income Protection fits in with their overall financial protection plan and how simple it is to get affordable coverage in just days – no medical exams or occupation classes are great selling points. Once they understand just how easy the process is, chances are they’ll be sold.
 
What’s next?
 
Simply let your clients know you are in the income protection business – they likely already want income protection but just don’t know where to get it. Plus, they’ll want to purchase a policy from someone they know and trust – You!
 
Also, many clients are probably unaware they can even purchase an individual Income Protection Plan – as odds are they’re under the impression they can only get an employer sponsored plan.
 
We have numerous options available, and can help you get the word out. Contact your Income Protection Specialist today for more information.

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Can Your Clients Afford A 58% Pay Cut?

A majority of employees have Disability Income coverage sponsored by their employer. However, they are unaware of how much coverage their plan would provide if they were to be too sick or hurt to work.

Many individuals live with a false sense of security regarding their Income Protection plan – believing that if an accident were to occur, they would be financially set until they could return to work.

The Reality
 
A typical group Disability Insurance policy covers 60% of their base income. This can be a good income replacement safety net. However, benefits are usually taxed and the remaining after-tax monthly benefit could be as little as 42% of a person’s regular base income.
 
For highly compensated employees, this amount could be even lower if there is a monthly benefit cap, or if incentive pay or bonuses are not covered by their plan.
 
The Solution
 
Fill the gap by offering an Individual Disability Income insurance policy in conjunction with the Group Long-Term Disability (LTD) insurance.
 
This additional coverage can bring your client’s income back to approximately 80% of their pre-disability earnings and can be offered on a simplified issue basis. With no exams or tax returns, they can buy up to $7,500 off additional monthly income protection.
 
Plus, when three or more lives are covered with Individual DI insurance policies and share a common employer, all are eligible for at least a 20% discount on unisex rates.
 
So, when your client says they don’t need an Income Protection plan because they are already covered through work, don’t let that be the end of your conversation. Find out exactly what their plan would pay them if they were unable to work, and if those benefits would be taxable to them. A small amount of additional coverage can put them right where they need to be: financially sound.
 
For more information on how you can provide your clients with the coverage they need – contact your Disability Income Specialist today.

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