What Makes IDI Great

Transcription

1 Principal Life Insurance Company What Makes IDI Great What s New with Individual DI Supplemental Health Benefit Rider* Select Professional Program Business Owner Market Enhancements * Available 9/22; May not be approved in all states, visit to view approvals. Not available in California. 1

2 The impacts are universal Chronic diseases, such as heart disease and cancer are leading causes of disability in the United States. These diseases cause major limitations in daily living for more than one in every ten Americans. Each year, about 700,000 Americans have a stroke. On average a stroke occurs every 45 seconds. Source: Centers for Disease Control and Prevention, Department of Health and Human Services, The Burden of Chronic Diseases and Their Risk Factors, 2004 Supplemental Health Benefit (SHB) rider Helps a client pay any expenses they may incur due to their medical condition (stated below) 2

3 How it Works: SHB rider No cost rider; will be automatically added to policy* Provides a one-time, lump-sum benefit equal to six times a policy s Maximum Disability Benefit (if an insured is disabled under the terms of the policy) Benefit paid after 90 days, assuming insured is Continuously Disabled and has survived the diagnosis/condition (regardless of the policy s elimination period) Benefit is paid in addition to other benefits provided by the policy Insured must be under regular care by a doctor for the condition or operative procedure * Up to underwriter discretion; will not be added to the policy if DI Retirement Security is utilized. Duration statistics Average disability duration 1 Cancer: 19 months Circulatory System Diseases (e.g. heart, vascular & circulatory): 47 months Stroke is the leading cause of serious long-term disability; more than 1.1 million stroke survivors reported difficulty with functional limitations and daily activities. 2 1 JHA, 2004 Disability Rate Study & Risk Management Survey 2 Centers for Disease Control and Prevention. Prevalence of disabilities and associated health conditions among adults - United States, MMWR 2001;50(7):

4 Claim examples for SHB rider Individual DI insurance policy 1/1/2008 insured is disabled due to multiple herniated discs and does not return to work 6/29/2008 benefits begin to accrue after satisfying the policy s 180 day elimination period Supplemental Health Benefit rider 5/1/2008 insured suffers a stroke 1 and survives the stroke for 90 days 7/30/2008 rider benefit is payable after 90 days of surviving the condition and remaining Continuously Disabled 1 - Assumes meets the rider s definition of condition/diagnosis. Claim examples for SHB rider Individual DI insurance policy 6/1/2008 insured is disabled due to cancer 1 8/29/2008 benefits begin to accrue after satisfying the policy s 90 day Elimination Period Individual DI insurance policy 1/1/2008 insured is disabled due to multiple herniated discs 6/15/2008 insured returns to work and no monthly Individual DI benefits are paid since the policy s 180 day Elimination Period is not satisfied Supplemental Health Benefit rider 8/30/2008 rider benefit is payable after 90 days of surviving the condition and remaining Continuously Disabled Supplemental Health Benefit rider 5/1/2008 insured suffers a stroke 1 No rider benefit is payable, since the insured was not Continuously Disabled at the end of 90 days 1 - Assumes meets the rider s definition of condition/diagnosis. 4

5 What s new with the Select Professional Program The Select Professional Program is aimed at helping meet the changing needs of professionals who are expected to quickly attain higher earnings. This program now offers: Increased issue limits for Individual DI insurance for many occupations (Up to $6,000/monthly benefit for medical professionals now available) Up to $1,000/monthly benefit for DI Retirement Security 1 Expanded coverage for pharmacists and veterinarians 1 Not available in California. What s new with the business owner market Physicians and dentists can now participate in the Business Owner Allowance program Up to an additional $1,000/month of Individual DI insurance benefit is available by adding back up to 20 percent of Section 179 depreciation as earned income 1 1 Two years of business tax returns are required. 5

6 Target success Life and Disability TeleApp Cross-Sell to Your Life Insurance Clients Step one: Identify the Ideal client Under age 50 White/grey collar occupation Earns under $150,000/year Purchasing life insurance from you Step two: Request Life and DI TeleApp (six additional questions) Step three: Once TeleApp interview is completed, request that your DI underwriter reviews the results Step four: Review offer and prepare proposal for your client Step five: Upon life insurance policy delivery; bring DI application and proposal ask for a signature Remind clients of importance of income protection Ask how much is needed to cover daily living expenses and mortgage payments Explain offer (standard/modified, etc) and ask for the sale If interested in more than $3,000/month; indicate additional medical and financial underwriting may be required Step five: DI commissions for you policy placed and purchased! 6

7 Marketing support ers Customized Flyers Educational Materials Testimonials Client Seminars Bylines Approach Letters and Brochures Find these tools on Principal efinancialprofessional SM! What s the secret to selling Individual Disability insurance? You need to ask. 7

8 Questions? Contact your regional Disability Specialist or contact the National Sales Desk at Principal Life Insurance Company Des Moines, IA While this communication may be used to promote or market a transaction or an idea that is discussed in the publication, it is intended to provide general information about the subject matter covered and is provided with the understanding that The Principal is not rendering legal, accounting, or tax advice. It is not a marketed opinion and may not be used to avoid penalties under the Internal Revenue Code. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements. Insurance issued by Principal Life Insurance Company. Principal Life is a member company of the Principal Financial Group, Des Moines, IA Disability Insurance has limitations and exclusions. For costs and complete details of coverage, contact your local representative. No part of this presentation may be reproduced or used in any form or by any means, electronic or mechanical, including photocopying or recording, or by any information storage and retrieval system, without prior written permission from the Principal Financial Group. Copyright 2008 Principal Financial Services, Inc. #