Voluntary Disability

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  • Compared to other core employee benefits, Long-Term Disability has low penetration. This is especially true in service occupations, such as the retail sector.
  • This is just one example of how the current penetration of disability coverage does not meet the need in the marketplace. There are many more statistics that also point to this.
  • You would think with stats like these that there wouldn’t be so many employees without LTD. As an industry, we haven’t done a very good job in raising consumer awareness about the devastating financial impact that a disability can cause. Insurers and organizations such as the Council for Disability Awareness are really pumping up awareness through various media outlets, so expect to see more press about this issue.
  • While increasing awareness about disability will drive some new sales, many employers understand the value, but just can’t pay for more benefits. Many of these employers may not be aware that there are employee-paid LTD alternatives.
  • Some worksite players have captured consumers’ attention by emphasizing cash needs that people can have when the unexpected happens. These products can play a valuable role in an employer’s benefit package, but should not be considered as a substitute for a true long-term disability policy. Long-term disability coverage provides a continuous stream of income for disabled individuals, as opposed to a one-time cash payment.
  • So what are the alternatives to these kinds of lump sum worksite products? Group Voluntary LTD provides…….. (bullets)
  • Among the advantages of group Voluntary LTD are affordability and ease of acquisition. Individual disability is a great product, but it can be very expensive. People with moderate incomes would be challenged to pay the premium for an individual policy. On the other hand, the industry average annual premium for Voluntary LTD is considerably lower. And employers like the convenience of group coverage.
  • So, as an employee benefit broker, you’re well positioned to bring in a group voluntary LTD product. And we think we’re well positioned to provide those solutions for your clients, because……..(bullets)
  • Voluntary Disability

    1. 1. Voluntary Disability Insurance Affordable protection for your clients Growth opportunities for you Products and services marketed by Assurant Employee Benefits are underwritten by Union Security Insurance Company. In New York, products and services are marketed by Assurant Employee Benefits and underwritten by Union Security Life Insurance Company of New York, which is licensed in New York and has its principal place of business in Syracuse, New York.
    2. 2. This presentation provides a general overview on the need for disability insurance. Please see specific plan for plan details, limitations, exclusions and restrictions
    3. 3. An underserved market with huge growth potential Employee Access to Benefits, March 2006 Source: U.S. Dept. of Labor, Bureau of Labor Statistics, National Compensation Survey: Employee Benefits in Private Industry in the United States, March 2006 .
    4. 4. True or false? Disability causes nearly 50% of all mortgage foreclosures, compared to 2% caused by death.
    5. 5. The answer True. Disability causes nearly 50% of all mortgage foreclosures, compared to 2% caused by death. Source: Health Affairs, The Policy Journal of the Health Sphere, February 2, 2005.
    6. 6. Penetration doesn’t match need <ul><li>Half of all personal bankruptcies, affecting 2 million people annually, are attributed to illness or medical bills.* </li></ul><ul><li>The number of U.S. workers experiencing a long-term disability continues to grow at an alarming rate. </li></ul><ul><ul><li>In 2005, 2.4 million people filed disability claims with Social Security. </li></ul></ul><ul><ul><li>The latest U.S. Census estimated that there are over 30 million disabled Americans between ages 21 and 64. </li></ul></ul>*Source: MarketWatch: Illness and Injury as Contributors to Bankruptcy, Health Affairs Web Exclusive, February 2, 2005.
    7. 7. Voluntary products add value <ul><li>Even if employers understand the value of LTD, many are reluctant to pick up more benefit costs. </li></ul><ul><li>Voluntary LTD provides an alternative </li></ul><ul><ul><li>Enhances benefit packages without additional premium contributions </li></ul></ul><ul><ul><li>Helps employers return disabled employees to work </li></ul></ul><ul><ul><li>Non-taxable benefit when paid with after-tax dollars </li></ul></ul>
    8. 8. If it walks like a duck . . . is it? <ul><li>Popular payroll-deduct products may not provide true long-term disability income protection. </li></ul><ul><ul><li>Cancer </li></ul></ul><ul><ul><li>Critical illness </li></ul></ul><ul><ul><li>Accident </li></ul></ul><ul><ul><li>Hospital indemnity </li></ul></ul><ul><ul><li>Specified illness </li></ul></ul>
    9. 9. Advantages of Group Voluntary LTD <ul><li>Provides ongoing income replacement, not lump sum benefits. </li></ul><ul><li>Covers multiple causes of disability, including both on- and off-the-job illness and injury. </li></ul><ul><li>Group underwriting and guarantee issue for timely applicants. </li></ul><ul><li>Plans may be customized to suit employer needs. </li></ul>
    10. 10. Affordable and convenient <ul><li>Individual LTD Avg. Annual Premium - $1,856 1 </li></ul><ul><li>Group Voluntary Industry Average Annual Premium - $321 2 </li></ul><ul><li>According to a recent survey 3 , 51% of employers surveyed cited payroll contributions as a major reason to offer voluntary benefits. </li></ul><ul><li>In the same study, 48% of these employers named the ease of buying group vs. individual coverage. </li></ul>1 LIMRA U.S. Individual DI income sales, 2 nd quarter 2007 Review 2 LIMRA Group Disability Insurance, 2 nd quarter 2007 Review 3 MetLife 5th Annual Study of Employee Benefits Trends
    11. 11. Why choose Assurant Employee Benefits? <ul><li>We understand Voluntary LTD. Our products were developed specifically for this market. </li></ul><ul><ul><ul><li>Employee chooses benefit level. </li></ul></ul></ul><ul><ul><ul><li>A range of benefit options that meet your client’s needs: </li></ul></ul></ul><ul><ul><ul><ul><li>Traditional LTD for white and gray collar </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Serious Disability for heavy blue collar and hard-to-place industries </li></ul></ul></ul></ul><ul><ul><ul><li>Clear and objective policy language. </li></ul></ul></ul>
    12. 12. Why choose Assurant Employee Benefits? <ul><li>We make it easy: </li></ul><ul><ul><li>Census-free quote process. </li></ul></ul><ul><ul><li>Enrollment support and personalized enrollment forms. </li></ul></ul><ul><ul><li>Online billing administration. </li></ul></ul><ul><ul><li>No health underwriting – true “open” enrollment each year for most plans. </li></ul></ul>
    13. 13. Hungry for growth? Opportunities are plentiful with Voluntary LTD. Make sure you get your slice of this market while there’s plenty on the table. Partner with Assurant Employee Benefits and we’ll show you how easy it can be.
    14. 14. Disability products and services marketed by Assurant Employee Benefits are underwritten by Union Security Insurance Company. In New York, products and services are marketed by Assurant Employee Benefits and underwritten by Union Security Life Insurance Company of New York, which is licensed in New York and has its principal place of business in Syracuse, NY. Plans contain limitations and exclusions. Benefits provided and premium amounts depend on the plan selected. Some plan benefits may not be available in all states. We have the right to cancel policies with advance written notice. This policy provides disability income insurance only. It does NOT provide basic hospital, basic medical or major medical insurance as defined by the New York State Insurance Department. GP-90/PF99

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