Complete DI

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Complete DI

• Changing the Market One Case at a Time!

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What is Complete DI?

• A Fundamental Change in the Way You Present
  Disability Income Solutions to your Client!

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The Old Paradigm

• Disability Insurance Treated as a Commodity!

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What is a Commodity?

• Commodity a product which is interchangeable
  with another product of the same type

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The Commodity Slide
Stage One High Prices High Profits
Stage Two The Slide
Stage Three Rock Bottom Prices Low Profits
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Instant Survey

• Do Your Clients View Disability Insurance As A
  Commodity?
• Yes - ??
• No - ??

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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.
  
• Solets talk about your Medical Renewal

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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?
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In-Complete DI

• The Traditional Plan and Process Delivers
  In-Complete Results!

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Disability Contract Basics

• Most Dont 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?

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How Do I Qualify?

• Pre-Existing Condition
• Underwritten or Guaranteed Issue?
• Exclusions and/or Limitations
• Definitions of Disability
• First Definition
• Second Definition

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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?

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How Soon Do Benefits Start?

• Qualifying Periods
• Consecutive Days
• Trial Return to Work Days
• Partial Disability
• Zero-Day Residual

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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

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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

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Complete DI

• You Must Consider More Than Price and a Short
  Summary of Plan Benefits!

Does it Matter?
You Bet it Does!
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Why DI Cant 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.

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Instant Survey

• What is the Most Important Part of a Disability
  Contract?

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Instant Survey

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

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Instant Survey

• Own Occupation Period -
• Benefit Duration -
• Maximum Benefit Amount -
• Definition of Disability -
• Price -
• Elimination Period -
• Benefit Percentage -
• Taxability of Benefits -

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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.

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Caveat Emptor

• Definition Let the Buyer Beware
• Assumption is That the Insurance Carrier is
  Hiding Something and not Trying to Not Fulfill
  Its Promise!

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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!

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Words Have Meaning

• Disability is the inability of the insured to
  perform a substantial and material duties of
  his/her occupation

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Words Have Meaning

• Disability is the inability of the insured to
  perform the substantial and material duties
  of his/her occupation

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Words Have Meaning

• Disability is the inability of the insured to
  perform all the substantial and material duties
  of his/her occupation

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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

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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

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Words Have Meaning

• Basic Monthly Earnings, not including overtime
  pay, bonuses, and other compensation not received
  as basic wages or salary.

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Words Have Meaning

• Basic Monthly Earnings, including overtime pay,
  bonuses, and other compensation received during
  the prior full calendar year.

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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.

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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.

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Complete DI

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Instant Survey

• Whats the Highest Percentage of Your Clients
  Income You Can Insure With Disability Insurance?

• 60 - ??
• 66 2/3 - ??
• 70 - ??
• 85 - ??
• 100 - ??
• 100 - ??

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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!
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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
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In-Complete DI

• The Traditional Plan and Process Delivers
  In-Complete Results!

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Complete DI

• A Complete DI Plan and Process Delivers Complete
  Results!