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CPS Texas DI

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Not All Disabilities Are Treated Equally

If a severe disability struck, the kind where it’s impossible to perform life’s most basic activities without assistance, would your clients have enough income to get by?
 
Traditional income protection would provide approximately 60% of your client’s pre-disability earnings. However, your client’s expenses are likely to dramatically increase should a catastrophic disability occur.

By adding the Catastrophic Disability Benefit (CDB) rider to their individual Disability Income (DI) Insurance policy, clients could receive up to 100% of their pre-disability income to help cover expenses in those types of situations.

The rider offers a minimum monthly benefit of $500, up to a maximum benefit of $10,000 (depending on the client’s income). AND it is in addition to the base monthly benefit.
 
Together, the rider and base policy benefit replace a higher percentage of a client’s income to help them account for the extra expenses that often accompany a catastrophic event.
 
What’s Covered?
 
CDB benefits could be paid if your client is ADL disabled, cognitively impaired or presumptively disabled.
 
 
Contact your DI Sales Rep to learn more about income protection, and the advantages of the Catastrophic Disability Benefit rider.
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3 Things Employees Don’t Know About Their Disability Benefits

Protecting one’s ability to earn an income remains among the most important financial planning goals for many individuals.

Without income, many financial strategies can simply derail.

Yet, many employees with employer paid LTD plans could be under-insured in the event they became too sick or injured to work.
 
A new study released by The American College, Employer Perspectives on Disability Benefits, conducted by the Boston Research Group, shows:
 
  • Most group Disability Income benefits are taxable. Employees may receive a benefit that is only half their paycheck amount.
  • Few group Disability plans protect variable compensation. For employees who depend upon overtime pay, commissions and bonuses, the post–disability reality could mean not having enough income to meet their expenses.
  • High earners are maxed out. The maximum benefit amount in group plans limit benefits for highly compensated Executives and Business Owners.
For more information or sales ideas about Disability Income Insurance, contact your Disability Income Insurance Manager today.
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New Income Protection Solutions For Businesses

We are excited to bring three new solutions to your marketplace and the opportunities they present to help you grow your business.
 
Key Person Replacement Insurance, the Business Loan Protection rider and the Supplemental Health Benefit rider are only offered by a few carriers, which is why we are the place to go for Individual Disability Insurance (DI).
 
Key Person Replacement (KPR) Insurance:
 
This policy is an efficient way to provide business clients with the funds necessary to handle the loss of a key employee due to a total disability. Benefits can be used at the discretion of the employer, but common uses include:
 
  • Recruitment and training costs
  • Temporary staff needs
  • Indemnifies the company for lost revenue
  • Approved in 45 states
Business Loan Protection (BLP) rider:
 
In the event of a total disability, this rider reimburses the insured business owner for the covered business-related loan obligation. The rider is available on the HH 702 Overhead Expense (OE) Insurance policy. Examples of loans that can be covered under this rider include:
 
  • The purchase of a practice, existing business, equipment, building and/or land
  • The expansion of the business or practice
  • Facility renovations and improvements
  • And increase in working capital or build up of inventory
  • Approved in 46 states
Supplemental Health Benefit (SHB) rider:
 
This no-cost rider helps protect clients in the event of serious illness. It provides a one-time lump sum benefit equal to six times an individual DI policy’s Maximum Monthly Disability Benefit and Social Insurance Substitute Benefit if the insured is disabled under the terms of the policy and has coronary artery by-pass graft surgery, cancer or a stroke.
 
Please contact your Disability Income Marketing Manager for details and availability in your state.
 
*Not available in all states.
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Disability Income For Medical Professionals With Adverse Medical History

Medical professionals spend a lot of time and money advancing their careers and thus recognize the need for Disability Insurance. In order to address the needs of this target market, we specialize in providing coverage for those clients regardless of adverse medical, financial and personal history.

DI Case Study Example
  • General Surgeon – 4A Occ Class
  • Age 41| $300,000 income

Although the client was diagnosed with type-1 diabetes two years ago, is insulin stable and has no secondary issues, the client was originally declined for DI coverage due to the pre-existing medical condition. The client currently has a 60% income replacement ratio through their employer with a $10,000/mo cap.

The broker contacted our DI Specialist for alternative plan options. After review, and considering the pre-existing type-1 diabetes, we were able to secure an offer for coverage – the client was able to review multiple plan designs and select an elimination period and benefit period that best suited their premium budget.

Here is the DI solutions they chose:
  • $8,700 monthly benefit amount
  • 75% income​ replacement less underlying GLTD
  • 180-day elimination period
  • 7-year benefit period
  • No exclusion for diabetes!
  • $3,965.87 annual premium*
  • $4,521.92 with own Occupation Extension Rider
  • $360.89 monthly premium*
  • $411.49 with own Occupation Extension Rider

Our DI Specialists will work with you and your client to secure meaningful solutions with affordable premiums for your clients that feel they may not qualify for income protection due to health, occupational, or financial situations.

*IMPORTANT DISCLOSURE: The benefits, limitations and/or exclusions described herein are for general illustration purposes only and may vary by state and client profile.

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Expanded Guidelines Allow More Clients to Qualify for Disability Coverage

We can help you to write your first Disability Insurance (DI) policy or assist you in generating more production in the Disability Marketplace. Remember to ask your client’s about how they would pay for their various living expenses in the event that they could not earn their income at work due to sickness or injury.

If your client does not have a plan in place, you can help provide the solution.

To assist in providing you with the most competitive DI solutions, we have a number of carrier outlets for both blue and white collar clients. One of these carriers recently released their latest changes to product and underwriting guidelines.
 
Below you can find a summary of the various enhancements and changes along with a brief narrative detailing the impact of the change.
 
Expanded Select Occupation Discount
 
Guidelines have been expanded to provide for upgrades and discounts for more occupation classes within education and scientific fields. They have also added more Physician classes to make qualifying clients based on job duties considerably easier.
 
Foreign Nationals
 
Acceptable Visa’s expanded from only H1B, L1 and J1 to now also include O1 (Individuals with exceptional abilities in science, education or business) and TN (Canadian or Mexican citizens who work in the US) classes.
 
High Net Worth Clients
 
Individuals with a net worth up to $10M can now be considered for Individual DI. Clients with a net worth between $6M and $10M will need to be considered individually based on their “asset mix, nature and type.” This allows us to consider a traditional carrier outlet for the first dollar of coverage on high net worth clients before having to consider the surplus market.
 
IT Industry
 
IT solutions are changing the way we live our lives and it also impacts the job duties of our IT Professionals – we can now offer Top Occupation classes now available for IT Computer Programmers, System Analyst, Software Developers, and Database Administrators.
 
These enhancements make an already competitive product portfolio that much stronger. The occupation class changes will improve pricing, while the foreign national and high net worth client enhancements will allow you to provide DI coverage to clients that previously would not have been qualified for coverage in the traditional marketplace.
 
If you would like to obtain a quote or talk about what products may be available for your clients, please contact us today and we can help you to initiate and implement the sales process.
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Affordable Income Protection For Any Budget

The need for an income protection plan is not limited to the Executive, Doctor or Attorney earning in excess of $150,000. According to the 2020 U.S. Census Bureau the average annual income in the United States was $67,521 from all occupations.

Average everyday working people (Middle America) are just as dependent on their income to provide for themselves and their families as anyone in the higher tax brackets.

The opportunities are endless – reach out to your clients, friends, families, fellow club members and co-workers. Ask if they have an income protection plan in place should they get sick or hurt. Offer them an affordable plan to protect them and their family.
 
Of the advisors we speak with every day, Life Insurance Agents, Health Insurance Agents, and P&C Brokers – 92% are not talking to their clients about income protection and how affordable it can be.
 
You can differentiate yourself as an advisor just by offering valuable coverage to your clients that likely no one has ever spoken with them about.
 
Did you know?
 
The premium for a 45-year-old Office Clerk for $2,500 monthly benefit is only $51.00 per month. The premium for a 35-year-old Dental Hygienist for $3,600 monthly benefit is only $52.95 per month. There are even affordable plans for part-time Dental Hygienists and Registered Nurses working as little as 24 hours per week.
 
Talk about opportunities, there are over 192,800 Dental Hygienists in the US earning an average annual income of $87,530 (http://www.bls.gov/ooh/healthcare/dental-hygienists.htm) and 2.7 million Registered Nurses earning approximately the same income (http://www.bls.gov/oes/2011/may/oes291111.htm).
 
Never let premium be the reason your client’s income is left unprotected from an injury or sickness. The new, affordable Disability Insurance (DI) plans can fit most any budget. 
 
You are at the frontline to educate your clientele about the vital need for income protection in the event of an injury or sickness. Your clients want to buy income protection, but they need someone they know and trust to ask them about it.
 
Discuss Income Protection Insurance with all your prospects and clients, because they may not understand the risk of losing their income should an injury or an illness strike.
 
For marketing tools and sales ideas, contact your Disability Income Sales Experts today.
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Critical Illness Coverage Pays Up To $500,000 Upon First Diagnosis

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 a severe financial hardship for many of our clients.
 
Traditional health insurance plans cover medical expenses such as hospital stays, physician’s fees and the pharmacy bill. However, additional costs such as the insurance deductibles, child care, insurance premiums, and home health care must often be paid for by the recovering patient directly.
 
Critical Illness Insurance pays a tax free lump sum payment immediately upon first diagnosis of any one of a list of serious illnesses – including cancer, heart attacks, or stroke.

Claims statistics suggest we are 5 times more likely to survive rather than die before we reach age 65 of cancer, heart attack or stroke.

The good news is, medical advances enable people to survive conditions that could have killed us years ago. For example, more than 90% of men diagnosed with testicular cancer are still alive 5 years after first diagnosis, and 80% of women diagnosed with breast cancer have the same survival rate. There are over 5.8 million stroke survivors are alive today, many of them with permanent stroke related disabilities.
 
How does it work?
 
We have access to several critical illness carriers that offer unique policies to meet your client’s needs. I have found one plan in particular that offers a very comprehensive benefit plan at a very affordable cost.
 
Think of putting your premium dollars into a safety deposit box and if you are diagnosed with one of the 12 covered illnesses (including Alzheimer’s) the policy will pay the face value. Or, if you die of one of the covered illnesses, the policy will pay the face value to your beneficiary. If you should die of any other reason, 100% of all premium paid towards the plan will be returned to the beneficiary as a tax-free death benefit.
 
While most critical illness policies have a reduction of benefit at age 65, we have critical illness contracts that extend the full benefits to age 75.
 
Consider this:
 
The likelihood of surviving a critical illness grows every year and so does the threat of being diagnosed. The coverage is very affordable. A male age 40 can secure a $50,000 critical illness benefit for only $52.56 per month. There is a plan to fit any budget with benefits up to $500,000.
 
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 before they are diagnosed.
 
Contact your Disability Insurance Specialist for detailed information about a plan that meets your client’s needs and budget.
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Disability Buy-Sell Planning with a New Twist

We’ve seen how some traditional funding ideas for Buy-Sell Agreements have not met a client’s need as effectively as they should. Below is a unique way to look at Disability Buy-Sell Funding that may put your client in the best possible position.

Case Design:
  • 40-year-old Attorney, 25% Partner in a law firm worth $4 million
  • Current Annual Income $200,000
‘Traditional’ Funding Buy/Sell Agreement:
  • $1 million Term Life Insurance Policy in the event of premature death
  • $1 million Disability Buyout (DBO) Policy with 365-day Elimination Period (EP) & Lump Sum Benefit = $3,780 Annual Premium
‘Unique’ Funding Buy/Sell Agreement:
  • $1 million Disability Buyout (DBO) policy with a 730-day EP & Lump Sum Benefit = $2,880 Annual Premium
  • $900 annual Savings from ‘Traditional’
NOW ADD
  • $11,230 Monthly Benefit Individual DI policy with 90-day EP and 2-year benefit
  • $752 Annual Premium
  • $148 Total Annual Savings from ‘Traditional’

If the partner gets sick or hurt and cannot work, the Individual Disability Insurance (DI) policy will pay 67.3% of his income (tax free) for up to 2 years.

If the partner recovers from his illness or injury before the 2-year benefit runs out, he will not need to sell his shares of the practice, and he can return to work. Once he gets back to work full-time for 6 months, his Individual DI policy with 2-year benefit is reset and has a full 2-year benefit again.

The new plan design gives the partner more time to recover from the illness or injury – without having to worry about the company Buy-Sell Agreement forcing the firm to buy him out when he has recovery in sight.

If he does not recover after 2 years, the Individual DI policy benefit stops and the DBO policy will pay the partnership $1 million, tax-free, to help buy out his share of the business at current market value.

Contact your DI Specialist for more information about this strategy.

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Increase Your Sales With This Fast Track Sales Tip

It’s common for advisors to jump to the solution before making sure their clients comprehend what is at stake should they get sick or hurt and not be able to work and provide an income.

The first step, and the most important, is conveying the necessity for income protection to your clients.

Start by finding out what’s paramount to them. The things your clients value the most require the most protection: Family, Home, Financial Plans, Secure Futures – help clients identify what they can lose should something happen to their ability to earn an income, and acknowledge that it’s a problem needing attention.
 
Financial Security: If the paychecks stop, how will they pay their monthly bills?
 
Few middle income families have enough savings to make ends meet if they should lose their income for more than a few weeks. When the paychecks cease, monthly bills will begin to deplete savings – setting back plans or priorities, perhaps even for years. For these clients, the definition of income protection is about knowing they can meet their financial obligations and protect their future plans.
 
Supporting the Family: What changes will they face?
 
On top of losing a paycheck, a disabling illness or injury can mean changes for the whole family. Plans are put on hold, routines are changed, family members must pitch in more – and the calendar fills with doctor’s appointments, which leads to more medical bills, and the urgent question becomes, “When will things get back to normal?” It’s important for them to know there’s a way they can still support their families and keep life as normal as possible if they become unable to work.
 
Focus on Recovery: How will they recover if the stress of finances is haunting them?
 
The last thing someone needs when they’ve experienced a disabling illness or injury is the stress of worrying about bills and other financial obligations while they recover. It’s difficult enough to be facing an uncertain future without the constant worry of financial set-backs – it’s important to know they’ll have a plan in place and monthly Disability Insurance benefits which will help keep things on track, so they can focus on getting well.
 
Contact your Disability Income Sales Rep for guidance – we’ll help you identify the best solution for each of your clients’ needs.
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3 Ways To Get Your Clients Medical Bills Covered

Injuries and illness happen, and even when your clients have medical insurance, out-of-pocket medical bills can pile up, putting a strain on their financial security.

Clients may budget to meet their annual deductible in their medical insurance plan, but many are not prepared to handle the additional medical bills that can go beyond their deductible.

3 Solutions to Get Your Clients Medical Bills Covered
Clients considering an Income Protection policy now have the option to add additional protection in the form of a Long-Term Care, Critical Illness and/or Accident Medical Expense Benefit Rider which can provide additional protection to cover medical expenses for minimal or no cost at all.
 
  1. The Activities of Daily Living (ADL) Rider or Catastrophic Benefit Rider pays an additional monthly benefit in addition to the scheduled monthly benefit if your client is unable to perform 2 or more Activities of Daily Living (ADLs) without stand-by assistance or if cognitively impaired.
  2. The Supplemental Health Benefit Rider is similar in many ways to a traditional Critical Illness policy. This rider will pay a lump sum benefit equal to 6 times the monthly benefit if the insured has a stroke, diagnosed with cancer, or has coronary bypass graft surgery.
  3. Accident Indemnity Rider. When an accident occurs on or off the job, 24/7. The Accident Indemnity Rider pays fixed dollar amounts for emergency care, ambulance, diagnostic exams, surgery, and follow up Doctor’s visits. This rider pays even if there is no diagnosis of disability due to the injury. Coverage can include the insured’s spouse and children.
4 Ways to Present to Your Clients
  1. We offer customizable flyers, pre-approach letters, and client approved handouts – available to you, to provide your clients or prospects to generate interest.
  2. Prior to your appointments, consider sending your clients some educational pieces related to Income Protection and how the Additional Medical Expense protection works.
  3. At your appointment, first determine the Disability Insurance (DI) policy type and monthly benefit needed to meet your clients’ needs. When appropriate point out the features and the affordability of the added protection can be and the benefits it can provide.
  4. The riders are very affordable and can turn a basic disability policy into a comprehensive plan for little or no additional premium. Some riders will automatically pay a lump sum benefit and others will reimburse your client for medical expenses. There are some limitations and the riders are not approved in all states.
Please contact us for more specifics on how these benefits can enhance a product offering.

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