Disability Income

What happens if you lose your income due to disability-likely tragedy. Join the Life team at TBI and Mike Evans and Jim Coyle from the DI Center as we explore ways for easy conversation with your clients on this and our unique turn key business approach.

Timestamps

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Hey, welcome everybody. Chris Newberry and Crystal Bastillos on the Life Team at

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the brokerage, and so excited to have our

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tag team partners, Mike Evans and Jim Coyle with us

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today. You know the ground rules. We've got

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everybody muted, but you are not a bashful bunch, so if

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you've got a question or something that you want to know,

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feel free to type it into the chat feature and we will monitor

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those and take them as they come. So feel free to launch in

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on that. We are recording our webcast

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today, and it will land up eventually on the broker

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link, but we'll also be sending out a copy to you as

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well. And as you know,

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DI is accessed right from the broker link.

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You just go to the product section under disability income,

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and it has all of the information you need to get ahold of

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these guys. So, thanks again for joining us today.

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And with that,

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disability income, it's such an important

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product and in talking to people over the

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years, disability, people think, "Well, gosh, it's

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just for

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those doctors and lawyers." And absolutely it is

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for doctors and lawyers and those white-collar occupations, but

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it's just as important, maybe more important,

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for those gray collar and blue collar folks that you work with.

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So it's a great product,

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really important product to talk about.

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And we've partnered with the DI Center to bring you

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the very best in disability income, not just with one carrier, but with

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multiple carriers.

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With that, I want to introduce Mike Evans.

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Mike's an old friend, and

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we've traveled the state together a

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lot over the years and is a great supporter of our industry and

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does a lot of pro bono work for our industry through

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NAFA and other great organizations.

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And with that, Mike, welcome.

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Well, Chris, thank you very much. And I did sense you

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emphasized that word old friend, so thank you, old friend.

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We appreciate the opportunity,

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Chris and Crystal, to be on this webinar.

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It's always fun to partner with the brokerage team and

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talk about our favorite subject, and that is disability insurance.

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In fact, May is Disability Insurance Awareness Month, if you weren't

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aware. So it's a great time of the year, it's a great month

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to emphasize

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the need for this kind of protection

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and to talk to your clients and prospects about it.

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So that's what we're going to do this morning, is we're going to give

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you some tools and

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some concepts and some sales ideas to hopefully get

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you on that track and making this a conversation that you have often.

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So,

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just real quickly, you've been introduced to the team here.

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Myself, Mike Evans, and my partner, Jim Coyle.

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Jim is also with us, and

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you'll see

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Jim, especially when you get cases moving through the application phase, as he

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manages that process. We'll talk about that a little bit here later.

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But I am your go-to person, so I want you to reach out to me if you have a case

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that you want to talk about or you've got all the details and data already

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collected and you want to get some proposals started.

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I'm your go-to person. So,

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we call that pre-sale. So I'm going to help you on the pre-sale side,

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putting together solutions, proposals, client meetings

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even. We've had a number of these where we've jumped on a Zoom call or just

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a telephone call

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to go over proposals and answer questions that your clients and

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prospects have. So that's

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my role in our partnership. And then Jim, once we

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have a client ready to move forward,

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he takes over that app submission process.

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He works that case through the underwriting. He does his magic there.

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You'll be impressed with

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his skill in that regard. But case management and even

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service, once a piece of business is on the books, he can

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help you with that as well. So,

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we're all about solving problems.

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We're not a proposal machine. I know a lot of

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organizations

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really focus on how many proposals they shoot out every day, every week.

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And certainly that's important to an organization's success, but we're really

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about solving the problem, and solving it with a creative,

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with the best solution for the client.

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We've got lots of experience because this is what we do every day, is

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disability insurance. We live and breathe it.

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And we've got

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really proof for that as you look at our placement ratio.

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And I'm sorry, I need to advance the slide here, guys.

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Yeah, just a few bullets about our mission and that is, as we

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always say, making this easier. Not just for you, the advisor, but for

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your clients as well.

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So, 93% persistency. We hover around that

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92% to 94% year in and year out placement

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ratio. I said persistency, but that's really our placement

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ratio, which means

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93% of the applications we submit get placed as a

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policy, which is way above the industry average.

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The industry average hovers around the high 60s, maybe

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70%. So,

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we're doing something right, I think.

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Again, extensive knowledge in the marketplace. This is what we do every day.

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And just Jim and I

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have almost 80 years. That's hard to think about, Jim, but I did the

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numbers this morning. Almost 80 years of experience between the two of

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us. Our agency just last month celebrated its 30th

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anniversary back in April.So we're proud of that as well.

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So we're here to help you.

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We either get you ready for the sale,

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prepare to meet with your client, or we'll go with you

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to meet with the client. And then, Jim, you might say a word or two

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about the concierge application process, which is pretty unique to the DI Center.

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Yeah. Hello, everybody. Glad to be here.

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Yeah, what we call the concierge application process is just meant to really

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simplify things, both for you as the agent and for your client.

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It's not applicable in every situation.

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There are some products that are built to be simplified issue,

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where it's not really needed. But in a traditional

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disability

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policy application scenario, there might be income

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documentation needed and so on. And so that

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concierge process, if you choose to use it,

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makes it really easy. The crux of it is that I,

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and it is me personally, it's not a faceless

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person behind the scenes that you don't know, it's me, will have a very

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short phone conversation with the client.

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Typically takes about 15 minutes.

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And in that call, we're just completing the initial application,

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and then going over what income documents might be needed, if any,

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to prove income.

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And then going over what the medical requirements are,

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and talking about next steps in the process, and so on.

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So I really quarterback that process, and it really smooths things

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out because there's just a lot of issues,

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potential questions, and uncertainty that can come up about what is

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required to prove income, or if there's a medical

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situation, a health history issue, what is that going to look like?

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How is that going to affect the process? And I've just been doing this so long.

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It's not because I'm smarter than anybody else, but I've just been doing it so

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long, I can handle those things as they come up.

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And even though I quarterback that process,

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we always recognize it's your relationship with the client.

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You're in charge. You're always going to be aware of what's going on.

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And if there's something unusual or sensitive that arises,

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I'm going to pick up the phone and call you first.

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So,

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again, we can get into more of that next time you have a case

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to submit. We'll go in more depth, but that's just an overview of it.

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That's great, Jim. Thanks for sharing that.

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So here's the bottom line. Reach out to me. There's my phone number.

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That is my direct phone. It catches me wherever I'm at.

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You can even text me on that number.

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You can also reach out to me via email,

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mevans@thedicenter.com.

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And just basic information to get things started, name, gender,

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date of birth. We do like to get date of birth.

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I know

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that's sensitive information, but we do like to get date of birth because some

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carriers do look at age nearest in their calculations,

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so date of birth is preferred. But then in tobacco use,

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if they're a tobacco user. Occupation's really important for disability insurance.

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That really determines what product we use,

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what the premium's going to be. The occupation class is very critical.

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So give us as much detail about the occupation as you can.

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Not just title. Especially with business owners, we need to

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understand they're hands-on, performing manual

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labor intensive kind of duties.

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So just drill down on that as much as you can.

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And then obviously, we're ensuring income, so we need to have a good picture of

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what income is. With

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a W2 employee, that's a pretty easy number to arrive at, whatever their

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W2 says or whatever their pay stub gross income is.

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But for business owners, it's a little more complicated.

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We got to drill down into what net income is after

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business expenses, and sometimes it's a little harder number to arrive at, but

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we'll help you through that. But bottom line, if you got a business owner,

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ask them what their net after business expenses income is, and that'll get us

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close to get started. If they've got other disability insurance in place,

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whether it's group insurance, association kind of plans through their

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professional associations, or other individual coverage, we need to know about that

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in as much detail about those plans as we can get.

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And then just a general picture of their health, their build is

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important. I like to ask the question of what current medications

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are you on? That gives us a great window into what's going on health-wise with a

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person. And then if they've had any chiropractic visits, that's going to

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be important for disability insurance because backs

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and necks and those kind of issues are a big disability claim, and

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they've always been that way, so we're going to be sensitive to visits to

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chiropractors and that kind of thing.

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So any

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information you can disclose there will be helpful.

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And as Chris mentioned in the intro,

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if you go to the brokerage website, you've logged into the agent portal,

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if you will, you'll have access to a proposal request form that you can complete,

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and it's pretty detailed.

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As much of that information as you can provide, the better.

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If you leave some stuff blank, that's fine, but just complete

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as much as you can, and that request gets sent directly to me, so we'll

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get right to work on it.

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Okay.

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We've got the remaining time we have this morning, we want to have a

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discussion about how to help you engage in this

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conversation about income protection.

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So I want to just share with you some of our experience, and this is

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not just with the brokerage. This is really pretty much

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industry-wide. Again, Jim and I have worked in this space for many

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years, and what we find is that a lot of the cases

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we get to work on, the client or the

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prospect has initiated the

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conversation. So just envision this, the

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client

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calls you and says, "Hey, I'd like to get some more information about disability

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insurance. I'm interested in it."Well, in my mind, red flags

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go up. And I think most of you have had this experience when clients are

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calling you about this kind of insurance, especially.

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This is not homeowners or car insurance where they have to have it,

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right? So if they're calling you about it, generally something's

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happened, in our experience. Something's happened, and

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hopefully that something, that close call, that trip

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to the emergency room, that cancer diagnosis, hopefully it's

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happened to a friend or family member around your prospect,

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right? It hasn't happened to them, hopefully.

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Because if it's happened to them,

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you know the end of that story. It may be too late for them to get coverage or

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to get the coverage that they desire without exclusions and

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extra premiums, et cetera.

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So, you want to have that conversation before it's too late.

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As the property and casualty folks say, you got to buy the homeowner's

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insurance before the house catches on fire, right?

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Same thing's true with this kind of coverage. So just be aware of that.

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So what's the remedy to that? Well, the remedy is for you to be

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proactive. In other words, you should start these conversations,

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and you should be targeting your young and healthy prospects and clients,

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because that's where you're going to have the best results, is to help them get

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this coverage in place before something happens.

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So I'm going to encourage you all to be active, proactive, and have

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conversations with your clients and prospects about this needed

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coverage. And the best place to start, quite frankly,

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is with you. So if you hadn't looked at your own personal

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income protection plan,

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if you don't have coverage or you have some coverage, but it's not adequate,

242
00:13:57.500 --> 00:14:01.160
that's where you ought to get started, is taking care of your own house.

243
00:14:01.300 --> 00:14:04.900
I promise you, the advisors, and I think Jim will concur, the advisors

244
00:14:05.340 --> 00:14:09.000
we work with that have their own house in order, that have taken care of their own

245
00:14:09.080 --> 00:14:13.030
income protection needs, are much more successful in

246
00:14:13.080 --> 00:14:15.260
selling this product to their clients and prospects.

247
00:14:16.200 --> 00:14:18.700
It makes a huge difference. And we've got

248
00:14:19.700 --> 00:14:20.640
an old saying, it's

249
00:14:22.780 --> 00:14:26.760
hard to sell at retail what you won't buy at

250
00:14:26.800 --> 00:14:27.340
wholesale.

251
00:14:28.420 --> 00:14:32.280
Just think about that. It's hard to sell at retail what you're not willing to buy

252
00:14:32.620 --> 00:14:36.320
at wholesale. And what I mean by wholesale is when you sell yourself a

253
00:14:36.340 --> 00:14:39.640
disability policy, guess what? You're going to get some commission.

254
00:14:40.500 --> 00:14:43.720
Yeah, you're going to have to pay the premium to keep that policy in force, but

255
00:14:43.740 --> 00:14:47.360
that premium's going to be offset with a nice commission, and so that's

256
00:14:47.400 --> 00:14:49.340
wholesale, right? You're buying it at wholesale.

257
00:14:49.740 --> 00:14:51.220
Your clients have to buy it at retail.

258
00:14:51.310 --> 00:14:55.280
So think about that, and we'd love to help you get your own house

259
00:14:55.300 --> 00:14:59.110
in order and put plans in place if you don't have already.

260
00:14:59.160 --> 00:15:02.800
So, and even if you have some plans and you're just not sure if they're adequate or

261
00:15:02.840 --> 00:15:06.389
the right kind of plan for you, happy to go through that and do some

262
00:15:06.420 --> 00:15:07.060
analysis.

263
00:15:11.340 --> 00:15:11.860
Okay, Jim.

264
00:15:12.800 --> 00:15:16.340
Yeah. In terms of carriers, Chris mentioned at the outset

265
00:15:17.500 --> 00:15:20.260
there are multiple carriers on the shelf.

266
00:15:20.500 --> 00:15:23.300
I want to just point out for those of you that are not real familiar with the

267
00:15:23.320 --> 00:15:26.320
disability market, it's a very small universe of carriers.

268
00:15:26.680 --> 00:15:28.540
It's very different than life insurance.

269
00:15:29.280 --> 00:15:31.380
Life insurance, there's lots of carriers.

270
00:15:32.280 --> 00:15:35.310
In the individual disability space, there's really

271
00:15:35.760 --> 00:15:39.620
effectively about roughly a half a dozen or so

272
00:15:40.400 --> 00:15:42.620
that independent brokers can access.

273
00:15:43.200 --> 00:15:47.000
Some of those focus exclusively on the upper end of the market in

274
00:15:47.040 --> 00:15:50.740
terms of income. They're really focused on the surgeons and so on.

275
00:15:51.700 --> 00:15:54.940
Others are focused mainly on middle market, and

276
00:15:55.520 --> 00:15:55.740
some

277
00:15:57.060 --> 00:15:59.600
have even more specialty niches besides that.

278
00:15:59.640 --> 00:16:02.210
I think that what we put here is just the featured carriers.

279
00:16:02.260 --> 00:16:06.140
It's not an exhaustive list, but the ones you'd see most often would be Ameritas,

280
00:16:06.660 --> 00:16:10.120
Principal, Illinois Mutual, and even the Lloyd's

281
00:16:10.380 --> 00:16:11.050
marketplace.

282
00:16:12.440 --> 00:16:16.420
Ameritas is, as you see in the bullet point there, it's really the

283
00:16:16.460 --> 00:16:20.449
most flexible product, so it's going to be the most competitive

284
00:16:20.500 --> 00:16:22.580
in the most situations.

285
00:16:23.600 --> 00:16:27.560
So that policy can be built up to be a true Cadillac if you

286
00:16:27.640 --> 00:16:31.390
are dealing with a high income person who wants a Cadillac type

287
00:16:31.479 --> 00:16:33.620
policy and cost isn't really the issue.

288
00:16:34.859 --> 00:16:38.740
But it's also going to be very competitive in many just middle market,

289
00:16:40.220 --> 00:16:44.040
middle America scenarios. So very competitive.

290
00:16:45.320 --> 00:16:49.120
Principal, great carrier. They're particularly strong in

291
00:16:49.200 --> 00:16:49.740
certain

292
00:16:50.580 --> 00:16:54.220
policies that are exclusive to business owners.

293
00:16:55.220 --> 00:16:56.500
So you'll see that from time to time.

294
00:16:57.380 --> 00:16:59.580
Illinois Mutual really focuses on the middle market.

295
00:16:59.820 --> 00:17:03.480
And they've got a short term disability policy

296
00:17:03.490 --> 00:17:07.000
that's somewhat unique, and it's a simplified issue deal.

297
00:17:07.060 --> 00:17:10.100
So, for the right client, that might be a good fit.

298
00:17:10.120 --> 00:17:13.141
And then Lloyd's really is there kind of in the background.

299
00:17:13.280 --> 00:17:17.260
You won't see them on most cases, but if you have an unusual

300
00:17:17.360 --> 00:17:20.820
occupation or what we would call an impaired risk

301
00:17:21.000 --> 00:17:24.881
situation that where none of the domestic disability carriers would

302
00:17:25.100 --> 00:17:25.740
offer coverage,

303
00:17:26.620 --> 00:17:29.620
oftentimes the Lloyd's marketplace is able to do something.

304
00:17:29.700 --> 00:17:33.200
So the Lloyd's marketplace sounds exotic, but it's really not.

305
00:17:33.320 --> 00:17:36.720
We access it quite frequently in a lot of different situations.

306
00:17:37.260 --> 00:17:39.950
Jim, just a quick question. I know we've got-

307
00:17:40.080 --> 00:17:40.140
Yeah

308
00:17:40.200 --> 00:17:41.939
... some of our advisors that are

309
00:17:43.020 --> 00:17:46.940
in with professional athletes and people in the

310
00:17:46.960 --> 00:17:50.680
entertainment world. Is that more of a

311
00:17:50.720 --> 00:17:52.200
Lloyd's type opportunity?

312
00:17:54.740 --> 00:17:57.160
Yeah, for sure. The domestic carriers,

313
00:17:59.500 --> 00:18:02.240
I think your point, Chris, yeah, the domestic carriers aren't going to write a

314
00:18:02.320 --> 00:18:05.720
professional athlete or a professional entertainer or anything like that.

315
00:18:06.280 --> 00:18:09.880
But we can absolutely get coverage for those type of occupations through the

316
00:18:09.920 --> 00:18:10.580
Lloyd's

317
00:18:10.600 --> 00:18:18.222
marketplace.Hey,

318
00:18:18.292 --> 00:18:22.172
so as far as the slide you see here, just want to touch on what

319
00:18:22.232 --> 00:18:25.772
to look for as far as the best prospects and even some discount

320
00:18:25.792 --> 00:18:26.252
programs.

321
00:18:27.932 --> 00:18:30.532
Just as is the case with

322
00:18:31.332 --> 00:18:35.072
individual life insurance, the disability rates are

323
00:18:35.692 --> 00:18:38.862
set and filed with the state, so we can't negotiate rates

324
00:18:39.752 --> 00:18:43.512
case by case. But there are some discount programs, some

325
00:18:43.592 --> 00:18:45.582
discounts already filed for and on the shelf

326
00:18:46.652 --> 00:18:48.572
for various occupations. We've got

327
00:18:49.772 --> 00:18:53.732
access to national discount programs for the occupations you see there,

328
00:18:54.132 --> 00:18:57.632
physicians, medical residents, dentists, veterinarians,

329
00:18:58.752 --> 00:18:59.552
and attorneys.

330
00:19:00.412 --> 00:19:00.612
And

331
00:19:01.632 --> 00:19:03.852
those already exist, are already on the shelf we can tap into.

332
00:19:04.452 --> 00:19:08.412
Then for new opportunities, if you happen to have

333
00:19:08.452 --> 00:19:12.102
inroads with a professional or trade association, we can oftentimes get

334
00:19:12.192 --> 00:19:16.072
a discount, an exclusive discount, approved for

335
00:19:16.112 --> 00:19:19.812
members of that association. That's not something you see every day, but we do

336
00:19:19.872 --> 00:19:20.112
those.

337
00:19:21.772 --> 00:19:24.152
As far as prospects to look at,

338
00:19:25.472 --> 00:19:28.752
Chris mentioned at the outset, your doctors and lawyers and so on, and those are

339
00:19:28.772 --> 00:19:32.752
good prospects, no doubt about it, but they're not the only ones

340
00:19:32.812 --> 00:19:36.122
by far. So really, in a certain sense,

341
00:19:37.652 --> 00:19:38.372
anyone that's

342
00:19:39.532 --> 00:19:42.912
in an insurable age and relies on their

343
00:19:42.972 --> 00:19:45.292
income to make a living,

344
00:19:46.512 --> 00:19:50.352
in a sense, is a good prospect. We would refine that a little

345
00:19:50.392 --> 00:19:53.592
bit with this 30-50-70 rule. So

346
00:19:54.672 --> 00:19:58.492
30-50-70 just really refers to an income range

347
00:19:59.472 --> 00:20:01.252
and an age range. So

348
00:20:02.252 --> 00:20:05.812
prospects that are between 30 and 50 years old and are

349
00:20:05.892 --> 00:20:08.992
earning 70,000 or more in income,

350
00:20:09.812 --> 00:20:11.612
I think is kind of the sweet spot.

351
00:20:13.012 --> 00:20:16.132
If someone's outside that range, it doesn't mean we can't help or we don't have

352
00:20:16.172 --> 00:20:19.392
options for them, but that's kind of the sweet spot to look at as you're out there

353
00:20:19.772 --> 00:20:22.112
proactively thinking about prospects to talk to.

354
00:20:23.632 --> 00:20:24.052
So

355
00:20:25.192 --> 00:20:28.872
30 to 50 years old, 70,000 or more, that's kind of the sweet spot.

356
00:20:30.132 --> 00:20:33.072
The other thing you can look at, because really to this point, we've been talking

357
00:20:33.112 --> 00:20:36.872
more about individuals, but there are what we call

358
00:20:36.932 --> 00:20:40.912
multi-life situations. You've got multiple employees

359
00:20:40.932 --> 00:20:44.762
at one place of business, might be a business owner and some key employees,

360
00:20:45.192 --> 00:20:48.772
something like that. We can look at discounts for

361
00:20:49.292 --> 00:20:52.072
when there's three or more lives at one place of employment.

362
00:20:52.872 --> 00:20:56.172
We can even look at some underwriting concessions, what they call guaranteed

363
00:20:56.252 --> 00:21:00.112
standard issue, which really just boils the underwriting

364
00:21:00.152 --> 00:21:03.532
down to just a few gatekeeper questions, if you will, and that starts at five or

365
00:21:03.572 --> 00:21:07.452
more lives. So we can always help you explore those opportunities if

366
00:21:07.472 --> 00:21:10.652
you're dealing with a business, a business owner that's got employees as well.

367
00:21:16.612 --> 00:21:17.452
So just

368
00:21:18.432 --> 00:21:21.592
in terms of the universe of the type of products,

369
00:21:22.192 --> 00:21:25.832
we've touched on a few things, but obviously the

370
00:21:26.492 --> 00:21:30.462
no-brainer, what you see the most of is personal income protection to want

371
00:21:30.492 --> 00:21:33.672
to replace someone's income,

372
00:21:34.672 --> 00:21:37.792
what puts food on the table at home, even for a business owner.

373
00:21:38.092 --> 00:21:41.692
Just putting food on the table at home, paying the light bill and the mortgage,

374
00:21:42.132 --> 00:21:44.552
that's what a personal disability policy does.

375
00:21:45.712 --> 00:21:48.692
For business owners, there's a few other needs that

376
00:21:48.752 --> 00:21:52.252
they may have. One is a business overhead

377
00:21:52.312 --> 00:21:56.052
expense. Quickly, I'll just say it's designed to pay the

378
00:21:56.132 --> 00:21:59.432
fixed expenses of the business while the owner is disabled.

379
00:22:00.492 --> 00:22:04.472
That's important in a business where the owner's presence and ability

380
00:22:04.512 --> 00:22:06.572
to work is what drives the revenue.

381
00:22:06.592 --> 00:22:08.772
That's not true of every business, but many of them it is.

382
00:22:10.112 --> 00:22:11.152
If that business owner's out,

383
00:22:12.592 --> 00:22:15.372
who pays the salaries of the staff, who pays the

384
00:22:16.232 --> 00:22:20.212
rent for the office, insurance bills and

385
00:22:20.292 --> 00:22:23.892
so on? A business can die very quickly if the owner's going to be out

386
00:22:23.952 --> 00:22:27.452
for six months or a year. So a business overhead expense policy

387
00:22:27.712 --> 00:22:31.532
really is protecting the owner's biggest asset, often,

388
00:22:31.592 --> 00:22:33.312
which is the value of that business.

389
00:22:34.592 --> 00:22:36.852
There can be coverage for business loans.

390
00:22:37.011 --> 00:22:40.892
Sometimes the lender requires that there be a disability policy, so the lender

391
00:22:40.912 --> 00:22:42.052
knows they're protected if the

392
00:22:43.192 --> 00:22:45.452
borrower, the business owner, is disabled.

393
00:22:46.232 --> 00:22:49.872
And sometimes the business owner may have a key person, a key employee that drives

394
00:22:49.912 --> 00:22:53.752
a lot of revenue and wants to have the business protected and

395
00:22:53.792 --> 00:22:57.592
receive some financial relief if that key person was to be

396
00:22:57.612 --> 00:23:01.332
disabled. And then finally, if there's two or more

397
00:23:01.392 --> 00:23:05.332
owners of a business, they may have a buy-sell agreement in place

398
00:23:05.392 --> 00:23:09.292
that specifies what's going to happen if one of the partners

399
00:23:09.332 --> 00:23:10.092
gets disabled,

400
00:23:11.432 --> 00:23:15.192
and a buyout is triggered. Just like with life insurance, a

401
00:23:15.292 --> 00:23:18.672
disability policy can be set up that would fund that purchase.

402
00:23:20.032 --> 00:23:23.892
And then we talked about the multi-life guarantee standard issue

403
00:23:24.792 --> 00:23:28.102
options, sometimes when there's the appropriate number of lives to be covered.

404
00:23:28.832 --> 00:23:32.432
And then finally, this is sort of under the

405
00:23:32.472 --> 00:23:36.452
Lloyd's of London market, we talked about the outside the box stuff in

406
00:23:36.492 --> 00:23:39.972
terms of impaired risks, where there's a medical condition

407
00:23:40.032 --> 00:23:42.412
or a unique occupation, that sort of thing.

408
00:23:43.952 --> 00:23:47.892
So that'll pretty much cover all the range of options, and just know

409
00:23:47.912 --> 00:23:49.382
that we're going to proactively...

410
00:23:49.412 --> 00:23:53.302
You come to us with a business owner, we're going to proactively

411
00:23:53.332 --> 00:23:57.192
help you explore what options, what types of coverage that

412
00:23:57.232 --> 00:24:01.182
business owner may need. If it's just somebody, a W2 employee

413
00:24:01.252 --> 00:24:04.832
looking to protect their family, then it's probably just going to be a personal

414
00:24:04.872 --> 00:24:06.172
income protection conversation.

415
00:24:09.572 --> 00:24:11.792
Okay. Thank you, Jim. That's great information.

416
00:24:11.852 --> 00:24:13.652
Thanks for sharing and reviewing that.

417
00:24:14.472 --> 00:24:17.822
Very helpful, I think. The rest of our few minutes we've got left here

418
00:24:18.352 --> 00:24:20.482
this morning, I'm just going to share with you some

419
00:24:21.712 --> 00:24:25.362
concepts, really, concepts and sales ideas to, again, get

420
00:24:25.372 --> 00:24:29.166
yourBrain kind of thinking and being proactive and thinking

421
00:24:29.216 --> 00:24:33.156
about clients, possible clients you have, where you can bring this up and

422
00:24:33.196 --> 00:24:36.996
have discussions. This one's real simple. It's just a picture of a puzzle.

423
00:24:37.056 --> 00:24:40.696
And if you think about risk management, it really is a

424
00:24:40.756 --> 00:24:43.036
puzzle, and it involves several pieces.

425
00:24:43.656 --> 00:24:47.296
Obviously, life insurance, Chris and Crystal love that piece of the puzzle, right?

426
00:24:47.896 --> 00:24:50.656
Health insurance, many of you are working in the health insurance marketplace.

427
00:24:50.696 --> 00:24:54.256
That's important. I can't imagine going a day without my health insurance

428
00:24:54.576 --> 00:24:54.956
coverage.

429
00:24:56.506 --> 00:25:00.306
Long-term care insurance has become more critical, more people are

430
00:25:00.306 --> 00:25:04.096
aware of that need as we age in protecting our

431
00:25:04.176 --> 00:25:07.446
assets. And certainly retirement strategy, an important

432
00:25:08.416 --> 00:25:11.856
risk consideration as again, we age and look towards

433
00:25:11.916 --> 00:25:15.836
retirement. But the one piece that's often left out is right in

434
00:25:15.856 --> 00:25:19.076
the center. In fact, Jim and I would argue maybe the most important piece

435
00:25:20.156 --> 00:25:22.836
because it supports income, and that's disability insurance.

436
00:25:22.916 --> 00:25:26.456
So be sure you complete that puzzle in your risk management

437
00:25:26.476 --> 00:25:27.576
assessment with your clients.

438
00:25:28.616 --> 00:25:32.076
That's very important. To tag on to that

439
00:25:32.096 --> 00:25:35.666
conceptual piece, I like pictures, so you're going to see some pictures here.

440
00:25:35.676 --> 00:25:37.976
But the one on the left is a classic,

441
00:25:38.916 --> 00:25:42.396
the building blocks. If you look at that, income is the

442
00:25:42.436 --> 00:25:45.736
foundation. It supports all the other assets.

443
00:25:45.796 --> 00:25:49.596
It makes all the other assets we have and accumulate over time

444
00:25:49.676 --> 00:25:52.516
possible. Without income, really none of that happens.

445
00:25:52.966 --> 00:25:56.856
And so if you pull that income block out, just imagine what happens to the rest of

446
00:25:56.896 --> 00:26:00.876
those blocks, right? They come crashing down, and that's exactly what would

447
00:26:00.916 --> 00:26:04.216
happen to a person's financial picture if they lose their income.

448
00:26:05.296 --> 00:26:07.536
On the right side, you see the little house tilted there.

449
00:26:07.756 --> 00:26:10.256
It doesn't have a very good foundation, and here's why.

450
00:26:10.996 --> 00:26:14.456
If, again, you're focused on the health insurance side of the marketplace,

451
00:26:14.836 --> 00:26:18.776
helping people with this major risk, think about a good health insurance

452
00:26:18.816 --> 00:26:20.346
plan. It's important,

453
00:26:21.556 --> 00:26:25.086
but who's it taking care of? If you think about that and you ask your clients to

454
00:26:25.116 --> 00:26:25.816
think about that,

455
00:26:27.296 --> 00:26:30.616
you'll come to the conclusion that, okay, well, it's taking care of the doctor,

456
00:26:30.876 --> 00:26:33.716
making sure the doctor gets paid. It's taking care of the hospital in case

457
00:26:34.556 --> 00:26:36.195
I'm in the hospital for a period of time.

458
00:26:36.576 --> 00:26:39.946
It's taking care of the pharmacist, making sure they get paid for the meds that I'm

459
00:26:39.956 --> 00:26:40.516
going to need.

460
00:26:41.536 --> 00:26:43.156
But if I'm laying up in a hospital bed,

461
00:26:44.056 --> 00:26:45.136
who's taking care of

462
00:26:47.036 --> 00:26:48.186
myself and my family?

463
00:26:49.256 --> 00:26:52.836
Who's taking care of the home front and income, the house payments, et cetera?

464
00:26:53.096 --> 00:26:56.616
So who's taking care of me? Well, that's where disability insurance comes in.

465
00:26:56.736 --> 00:27:00.686
So to have a complete health insurance program, you really

466
00:27:00.776 --> 00:27:03.536
need disability insurance in place as well

467
00:27:04.376 --> 00:27:05.896
to pay you and not

468
00:27:06.936 --> 00:27:07.776
just the providers.

469
00:27:08.756 --> 00:27:12.566
So again, another conceptual piece that I think will go a long way in helping your

470
00:27:12.636 --> 00:27:15.256
client understand how important this kind of coverage is.

471
00:27:16.276 --> 00:27:20.196
Now, if you're a numbers person more than a picture person, this chart can

472
00:27:20.236 --> 00:27:24.096
be effective, I think, too. Again, when you ask a person what their most

473
00:27:24.156 --> 00:27:27.796
important asset is, very rarely do they tell you their income.

474
00:27:28.356 --> 00:27:31.736
They think about their house, they think about their cars, they think about their

475
00:27:31.776 --> 00:27:35.416
jewelry, their retirement plan, their retirement investment account,

476
00:27:36.036 --> 00:27:39.996
their 401 , et cetera. They don't think about the

477
00:27:40.096 --> 00:27:42.836
one asset that makes all those possible, right? Their income.

478
00:27:42.876 --> 00:27:46.336
And the reason they don't, I think, is because the paycheck,

479
00:27:47.356 --> 00:27:50.036
relatively speaking, is a modest figure, right?

480
00:27:50.116 --> 00:27:53.656
We're used to getting paid on a weekly or bi-weekly or maybe monthly basis,

481
00:27:54.176 --> 00:27:56.816
and that check is fairly modest, right? Each time we get it.

482
00:27:57.696 --> 00:28:01.086
But when we project that check into the future for our working

483
00:28:01.116 --> 00:28:01.756
careers,

484
00:28:02.596 --> 00:28:05.976
you do see how big an asset it is. Just take the 30-year-old.

485
00:28:06.016 --> 00:28:09.476
I've got it highlighted here. The 30-year-old earning a modest

486
00:28:09.616 --> 00:28:13.056
35,000 bucks a year. That's a pretty modest income.

487
00:28:13.096 --> 00:28:16.996
But over a long period of time, in this case, 37 years until

488
00:28:17.006 --> 00:28:18.985
normal retirement age at age 67,

489
00:28:20.516 --> 00:28:24.485
almost $1.3 million will be earned in that

490
00:28:24.516 --> 00:28:27.176
period of time. That's a pretty nice asset.

491
00:28:27.446 --> 00:28:31.036
And so that's the number you should zero in on when you're having these discussions

492
00:28:31.056 --> 00:28:34.896
with your clients. The other one I point out is the high

493
00:28:34.956 --> 00:28:37.796
income earner making 150, age 40.

494
00:28:38.936 --> 00:28:41.696
And so just over the next 27 years,

495
00:28:42.576 --> 00:28:44.335
they're going to earn over $4 million.

496
00:28:45.096 --> 00:28:48.786
So again, put a number, put a real number to the risk that's

497
00:28:48.786 --> 00:28:52.186
there. You're buying life insurance for that

498
00:28:52.956 --> 00:28:56.936
entire risk, the million, the $2 million life insurance policy.

499
00:28:56.956 --> 00:28:59.676
You need to calculate the disability risk in the same way.

500
00:29:03.276 --> 00:29:05.036
This is an oldie, but I love it. It's

501
00:29:05.896 --> 00:29:09.836
really a good way to kind of again, set the stage

502
00:29:09.846 --> 00:29:11.416
and give the client a perspective.

503
00:29:12.256 --> 00:29:15.136
Three questions, and the first question is, do you

504
00:29:15.156 --> 00:29:18.496
rely on your income to provide for yourself and your family?

505
00:29:18.536 --> 00:29:20.996
That's really kind of a loaded question, isn't it?

506
00:29:21.056 --> 00:29:24.996
I don't know many people that don't rely on their income

507
00:29:25.476 --> 00:29:26.596
to make things work.

508
00:29:27.776 --> 00:29:28.896
So if that's the case,

509
00:29:30.016 --> 00:29:33.796
which job would you prefer? We've got two jobs options here.

510
00:29:33.836 --> 00:29:36.166
Job A is going to pay you 10,000 bucks a month,

511
00:29:36.996 --> 00:29:40.086
but if you're sick or hurt and you can't work, you're getting nothing.

512
00:29:40.936 --> 00:29:44.086
Okay? Job B is going to pay you a little less,

513
00:29:44.716 --> 00:29:48.296
9,800 bucks a month. But if you're sick or hurt and you can't work,

514
00:29:48.996 --> 00:29:52.776
that paycheck is going to keep coming in, $6,000 a month in this

515
00:29:52.836 --> 00:29:54.696
case, and it's going to be tax free.

516
00:29:55.916 --> 00:29:58.036
So which job would you prefer?

517
00:29:59.336 --> 00:30:03.276
And I've used this many years, and really, I've not had

518
00:30:03.336 --> 00:30:06.836
anybody pick job A. They always pick job B.

519
00:30:07.316 --> 00:30:09.936
The ones that have picked job A are being facetious with me.

520
00:30:10.076 --> 00:30:10.756
They're trying to

521
00:30:12.216 --> 00:30:15.716
get into an argument or conversation, which is fine too, but

522
00:30:17.836 --> 00:30:19.096
most of the time you're going to see

523
00:30:20.236 --> 00:30:23.566
folks pick job B. And if they do, they're telling you, "I want to protect my

524
00:30:23.616 --> 00:30:27.246
income. I'm willing to pay a couple of hundred bucks a month in this

525
00:30:27.276 --> 00:30:30.316
case to see that that income, that paycheck keeps

526
00:30:30.356 --> 00:30:41.286
coming."Jim,

527
00:30:41.306 --> 00:30:44.566
why don't you talk about this as a kind of a neat, unique concept?

528
00:30:45.146 --> 00:30:48.246
Yeah. We just wanted to point this one out because

529
00:30:50.086 --> 00:30:54.026
it's easy if you're new to the market, new to

530
00:30:54.066 --> 00:30:57.726
looking at disability insurance, this is a easy one to put in your...

531
00:30:59.766 --> 00:31:01.705
It's another arrow to have in your quiver, as they say.

532
00:31:02.226 --> 00:31:04.826
That's a lump sum disability policy.

533
00:31:05.266 --> 00:31:09.186
The traditional disability policies that those of you who have

534
00:31:09.446 --> 00:31:11.486
looked at that type of coverage before, you know it's

535
00:31:12.306 --> 00:31:16.166
expressed as a monthly benefit, and in a claim scenario, the policy will

536
00:31:16.206 --> 00:31:18.846
pay a monthly benefit over time during disability.

537
00:31:19.386 --> 00:31:23.226
This one's a little different in that it pays a lump sum benefit.

538
00:31:24.266 --> 00:31:27.946
The idea is to pre-fund a first year of

539
00:31:27.986 --> 00:31:31.906
disability to allow a person some time to adjust

540
00:31:31.966 --> 00:31:35.926
and apply for Social Security Disability, or if they've

541
00:31:35.966 --> 00:31:38.936
got some group disability coverage, long-term disability coverage through their

542
00:31:38.966 --> 00:31:42.846
employer to get through the requisite waiting periods and

543
00:31:42.886 --> 00:31:46.696
so on. So it's upfront cash to pre-fund the first year of

544
00:31:46.706 --> 00:31:47.266
disability.

545
00:31:48.286 --> 00:31:51.006
So in this case, this is just a little sample illustration.

546
00:31:51.346 --> 00:31:53.666
So a 42-year-old white collar

547
00:31:54.726 --> 00:31:58.666
worker with a $75,000 income, they

548
00:31:58.686 --> 00:32:02.506
could get this policy that would pay a $75,000

549
00:32:02.546 --> 00:32:06.446
benefit upfront with no waiting period

550
00:32:07.186 --> 00:32:10.806
if their treating physician certified that the

551
00:32:10.866 --> 00:32:14.346
physician expects the person to be unable to work for a year or longer.

552
00:32:15.046 --> 00:32:17.546
To be clear, you're not waiting a year to get the benefit.

553
00:32:18.846 --> 00:32:22.346
But if it just requires that the physician say he expects you to be

554
00:32:22.446 --> 00:32:26.396
out and unable to work for a year or longer, in that scenario, that triggers

555
00:32:26.566 --> 00:32:28.646
this benefit upfront with no waiting period.

556
00:32:29.066 --> 00:32:31.386
In this case, $75,000 tax-free.

557
00:32:32.546 --> 00:32:34.586
We've also got a critical illness

558
00:32:35.726 --> 00:32:39.606
rider on the policy that would provide a $10,000

559
00:32:39.626 --> 00:32:43.386
benefit if there's a qualifying critical illness, heart attack, stroke,

560
00:32:44.006 --> 00:32:44.925
cancer type of thing.

561
00:32:45.806 --> 00:32:49.726
So you could have a critical illness situation in which

562
00:32:49.826 --> 00:32:53.806
only the critical illness benefit's payable because the person's ability to

563
00:32:53.846 --> 00:32:56.906
work is not impacted. You could have the reverse where

564
00:32:57.846 --> 00:33:01.706
it's a car accident or something like that, it's not a critical illness,

565
00:33:02.006 --> 00:33:05.546
but the person can't work, in which case only the disability benefit would pay,

566
00:33:05.906 --> 00:33:09.346
or it can be both. It could be a critical illness that does

567
00:33:09.726 --> 00:33:12.986
impede the person's ability to work long term, in which case they both pay.

568
00:33:13.546 --> 00:33:17.426
So that pairs. It's very simple, and it pairs very

569
00:33:17.526 --> 00:33:20.406
well with life insurance. So if someone's looking at

570
00:33:23.306 --> 00:33:24.246
a million dollar,

571
00:33:25.066 --> 00:33:29.006
20-year term life policy, this could go right alongside

572
00:33:29.066 --> 00:33:30.586
of it. The concept is similar,

573
00:33:31.726 --> 00:33:34.646
just the benefit trigger and the benefit amounts are different.

574
00:33:34.686 --> 00:33:36.686
But it's a great pairing.

575
00:33:41.706 --> 00:33:45.626
Chris, I know we're just about at the end of our allotted time here, so let me just

576
00:33:45.646 --> 00:33:49.626
skip ahead. I had a few more sales ideas, but let's go ahead and let me just

577
00:33:49.646 --> 00:33:53.466
wrap up with a couple of resources I think will be great to

578
00:33:53.546 --> 00:33:57.346
have in your library or repertoire here to help you

579
00:33:57.466 --> 00:33:59.806
better understand disability insurance after this meeting.

580
00:34:00.326 --> 00:34:03.946
I hope that some of you are motivated to kind of explore this topic if you hadn't

581
00:34:03.986 --> 00:34:07.126
delved into it ever or haven't looked at it

582
00:34:07.166 --> 00:34:10.926
recently. I talked to a lot of agents that used to sell disability insurance

583
00:34:10.966 --> 00:34:14.866
early in their careers. Now that their clients have aged or are in retirement

584
00:34:14.986 --> 00:34:17.266
stages, they haven't worked a lot with disability insurance.

585
00:34:17.286 --> 00:34:20.226
But they've got a reason, because now they're working with their clients' kids

586
00:34:20.246 --> 00:34:24.046
perhaps to talk about disability insurance again, and so this is a

587
00:34:24.187 --> 00:34:24.446
great

588
00:34:25.246 --> 00:34:26.647
two resources to really help you

589
00:34:27.607 --> 00:34:30.786
gain some more information. Now, the first one, the Council for Disability Income

590
00:34:30.846 --> 00:34:31.426
Awareness,

591
00:34:32.546 --> 00:34:36.207
thecdia.org is their

592
00:34:36.266 --> 00:34:40.036
website, thecdia.org. This website has

593
00:34:40.266 --> 00:34:40.957
been revamped

594
00:34:41.826 --> 00:34:45.667
recently, and actually, a good friend of Jim and mine,

595
00:34:46.107 --> 00:34:49.986
Bob Herum, took over leadership of the CDIA a year or

596
00:34:50.026 --> 00:34:53.957
so ago, and he's really done a wonderful job of kind of getting this website and

597
00:34:53.966 --> 00:34:57.786
material up to date. And so great resource for not only you

598
00:34:57.865 --> 00:35:00.486
as an advisor, but for your clients or prospects.

599
00:35:00.926 --> 00:35:04.766
Also, a good section in there for employers exploring these kind of benefits for

600
00:35:04.806 --> 00:35:05.726
their employees.

601
00:35:06.846 --> 00:35:08.846
Another resource is Life Happens.

602
00:35:08.906 --> 00:35:10.366
Many of you know Life Happens

603
00:35:11.166 --> 00:35:14.606
from the life insurance. They're very prominent in the life insurance arena.

604
00:35:14.616 --> 00:35:18.546
That's primarily what they focus on, but they've got a really good section on

605
00:35:18.606 --> 00:35:21.526
disability insurance. It's called Disability Insurance

606
00:35:21.786 --> 00:35:25.726
101. So if you just go to the lifehappens.org website, you'll

607
00:35:25.806 --> 00:35:29.506
see a dropdown menu to get to the Disability Insurance 101.

608
00:35:30.566 --> 00:35:34.046
It's got some videos and some nice resources there to help you

609
00:35:34.086 --> 00:35:36.726
understand and help your clients better understand this need.

610
00:35:36.806 --> 00:35:40.396
So two great resources. Urge you to look at

611
00:35:40.406 --> 00:35:44.026
them. Hey, we're wrapped up and ready for any

612
00:35:44.066 --> 00:35:45.946
questions that may have come up.

613
00:35:46.486 --> 00:35:50.186
That's awesome, guys. Great stuff, important stuff.

614
00:35:50.426 --> 00:35:54.356
And folks, feel free to type in your questions on the

615
00:35:54.386 --> 00:35:58.086
chat feature. I think, Crystal, we already have some good

616
00:35:58.126 --> 00:36:00.106
questions already out there, don't we?

617
00:36:00.206 --> 00:36:03.366
Yes, we do. First question from Hal.

618
00:36:03.476 --> 00:36:07.046
He said, "If a prospect already has a generous accident

619
00:36:07.146 --> 00:36:10.406
policy, why should they also consider disability

620
00:36:10.446 --> 00:36:11.186
insurance?"

621
00:36:13.646 --> 00:36:16.046
That's a question we do hear often.

622
00:36:16.146 --> 00:36:19.966
I'll jump in, Jim, and you can ring in as well, but the

623
00:36:20.046 --> 00:36:22.726
accident coverages are pretty popular out there, and the reason I think they're

624
00:36:22.746 --> 00:36:25.286
popular is they're not very expensive, right?

625
00:36:25.326 --> 00:36:27.086
They're pretty inexpensive coverages.

626
00:36:27.126 --> 00:36:30.166
Well, there's a reason they're inexpensive, and here's the

627
00:36:30.186 --> 00:36:33.926
reason. If you look at the whole scope of disabilities that happen

628
00:36:34.146 --> 00:36:35.106
in our economy,

629
00:36:36.926 --> 00:36:40.886
you might be surprised to learn that only 10% are

630
00:36:40.926 --> 00:36:44.322
due to accidentsSo that means the other 90% of

631
00:36:44.342 --> 00:36:47.542
disabilities that occur are sickness related.

632
00:36:48.442 --> 00:36:52.422
So it's the sicknesses that cause these long-term disabilities, it's not the

633
00:36:52.502 --> 00:36:56.462
accidents. So that would be my answer as to why an accident

634
00:36:56.522 --> 00:36:59.782
policy may not be adequate. It's certainly better than having nothing, right?

635
00:37:00.162 --> 00:37:03.562
Now I know young prospects believe, "Well, if that happens to me, it's going to be

636
00:37:03.602 --> 00:37:06.382
an accident. I'm healthy and bulletproof.

637
00:37:06.762 --> 00:37:10.422
I'm not going to get sick." So they buy these accident

638
00:37:10.462 --> 00:37:14.322
policies. Again, better than having no coverage, I would say, but in many

639
00:37:14.382 --> 00:37:15.342
cases, not adequate.

640
00:37:17.442 --> 00:37:19.602
Yeah, and I would just add, too, I don't know

641
00:37:20.882 --> 00:37:24.782
what the total aggregate benefits can

642
00:37:24.822 --> 00:37:28.762
look like on an accident policy. I'm sure there's quite a range.

643
00:37:28.782 --> 00:37:30.832
But a disability policy,

644
00:37:32.142 --> 00:37:36.102
if it's someone fairly young, say someone in their 30s, they could potentially, if

645
00:37:36.142 --> 00:37:37.762
they were permanently disabled,

646
00:37:39.662 --> 00:37:41.462
whether accident or sickness,

647
00:37:42.422 --> 00:37:46.042
you're looking at a monthly benefit that's going to go on potentially

648
00:37:46.202 --> 00:37:49.262
up to age 67. That's a lot of money

649
00:37:49.462 --> 00:37:51.882
over the years. That's

650
00:37:52.902 --> 00:37:55.062
potentially millions of dollars of benefit over the years.

651
00:37:55.122 --> 00:37:58.502
So I don't know that all accident policies would be able to duplicate that,

652
00:37:59.122 --> 00:38:03.042
but I think Mike's point about sickness not being covered, I think that's

653
00:38:03.082 --> 00:38:03.642
the biggie.

654
00:38:05.602 --> 00:38:08.622
Thank you, guys. I'm going to skip over Francisco.

655
00:38:08.662 --> 00:38:10.652
We actually answer his question later on.

656
00:38:10.682 --> 00:38:11.812
There is a question that says,

657
00:38:12.702 --> 00:38:14.882
"How is it different from living benefits?

658
00:38:15.202 --> 00:38:19.102
Does it interfere with clients' current life insurance policy or

659
00:38:19.162 --> 00:38:20.302
Medicare benefits?"

660
00:38:22.902 --> 00:38:24.302
Yeah, I can start on that one.

661
00:38:25.162 --> 00:38:28.182
Yeah, so the living benefits on a life insurance policy,

662
00:38:28.682 --> 00:38:32.542
from my understanding is

663
00:38:32.602 --> 00:38:36.522
typically you're looking at a critical illness, so

664
00:38:37.302 --> 00:38:39.322
heart attack, cancer, stroke,

665
00:38:40.302 --> 00:38:44.232
a chronic illness, which is inability to perform two or more activities of day of

666
00:38:44.302 --> 00:38:46.342
living. I think those are kind of the two biggies.

667
00:38:46.382 --> 00:38:50.362
I think terminal illness is also part of that, but the two biggies from

668
00:38:50.901 --> 00:38:53.442
this standpoint would be critical and chronic illness.

669
00:38:54.022 --> 00:38:57.722
And then the policies give that policy owner the ability to

670
00:38:58.622 --> 00:39:02.142
almost get an advance in a way on some

671
00:39:02.162 --> 00:39:04.862
percentage of their death benefit in that scenario.

672
00:39:05.922 --> 00:39:09.542
And that's helpful, don't get me wrong, but

673
00:39:10.822 --> 00:39:11.042
it's a

674
00:39:12.722 --> 00:39:14.102
much more narrow

675
00:39:15.362 --> 00:39:19.322
swath of the potential issues that could lead to someone

676
00:39:19.362 --> 00:39:20.382
being unable to work.

677
00:39:21.282 --> 00:39:25.012
And I don't know that unless they have a really, really, really

678
00:39:25.102 --> 00:39:28.722
big death benefit, I don't know that it's potentially

679
00:39:28.782 --> 00:39:32.682
enough of a benefit to last as long as you'd need it

680
00:39:32.722 --> 00:39:35.242
to. So if you had,

681
00:39:36.102 --> 00:39:37.602
for example, a critical illness

682
00:39:38.702 --> 00:39:41.802
that was going to allow you to take 25% of

683
00:39:41.902 --> 00:39:44.742
a million dollar death benefit,

684
00:39:45.182 --> 00:39:46.962
potentially, that's just an example.

685
00:39:47.022 --> 00:39:50.982
I know there's a range there, but just if that's the hypothetical example,

686
00:39:51.362 --> 00:39:55.332
you'd be looking at a $250,000 maximum payout, which of course comes out of

687
00:39:55.362 --> 00:39:55.982
the death benefit.

688
00:39:56.782 --> 00:40:00.502
And that's great. Don't get me wrong, that's certainly better than nothing.

689
00:40:00.922 --> 00:40:03.782
But, again, if it was a disability that was going to last

690
00:40:04.522 --> 00:40:04.982
years,

691
00:40:06.142 --> 00:40:08.142
5, 10, 15, 20 years, be permanent,

692
00:40:09.302 --> 00:40:10.682
that money's just not going to

693
00:40:11.782 --> 00:40:12.202
last.

694
00:40:13.022 --> 00:40:16.962
Whereas a disability policy can pay that monthly benefit on and on and

695
00:40:17.042 --> 00:40:17.922
on as needed,

696
00:40:18.842 --> 00:40:22.822
oftentimes with inflation protection where it goes up

697
00:40:22.962 --> 00:40:25.462
every year during the claim to protect against inflation.

698
00:40:27.422 --> 00:40:31.272
And it's going to just kind of cover the difference, again, that something that's

699
00:40:31.322 --> 00:40:34.992
not qualifying as a critical illness, heart attack, cancer, stroke,

700
00:40:36.062 --> 00:40:39.892
and something that's not a long-term care situation where you can't

701
00:40:39.922 --> 00:40:41.562
do two or more activities of day living.

702
00:40:41.602 --> 00:40:45.022
There's a ton of the disability claims that are going to be in between those two

703
00:40:45.062 --> 00:40:47.802
ends of the spectrum that a disability policy would cover.

704
00:40:48.742 --> 00:40:52.462
Jim, you mentioned earlier a surgeon, and I

705
00:40:52.502 --> 00:40:56.251
think still very popular in the disability world is that

706
00:40:56.322 --> 00:41:00.071
own occupation definition. So if a

707
00:41:00.122 --> 00:41:03.881
surgeon crushes their hand

708
00:41:03.941 --> 00:41:07.342
working on their car on a Sunday afternoon and they can't perform

709
00:41:07.482 --> 00:41:11.302
surgery, even though they can be in the office and see patients, but if

710
00:41:11.322 --> 00:41:15.052
they can't do surgery, that's a disability

711
00:41:15.102 --> 00:41:15.822
claim, right?

712
00:41:17.142 --> 00:41:21.002
Absolutely. Yeah. How the definition of

713
00:41:21.062 --> 00:41:24.842
disability, how is disability defined in the policy

714
00:41:24.902 --> 00:41:28.322
means a lot, and you're right, Chris, that the own occupation

715
00:41:28.402 --> 00:41:32.002
definition in that case, yeah, that's a whole different ballgame

716
00:41:32.012 --> 00:41:35.642
than being unable to perform two or more activities of daily living independently.

717
00:41:35.702 --> 00:41:38.522
That's a much harsher standard to meet. Yep.

718
00:41:38.562 --> 00:41:38.662
Yep.

719
00:41:40.202 --> 00:41:40.942
Thanks, guys.

720
00:41:41.822 --> 00:41:45.042
There is an agent on here that says that he has a handful of clients that are

721
00:41:45.102 --> 00:41:48.722
either exclusively roofers or roofing is the

722
00:41:48.762 --> 00:41:50.722
significant portion of their business.

723
00:41:50.802 --> 00:41:54.422
So is there any hope of getting disability insurance for

724
00:41:54.462 --> 00:41:57.362
employees that are regularly up on roofs?

725
00:42:03.042 --> 00:42:04.002
Mike, you want to go or you want me to do the-

726
00:42:04.762 --> 00:42:05.402
Yeah, go ahead, Jim.

727
00:42:05.942 --> 00:42:07.802
Yeah. I'd say I think

728
00:42:08.822 --> 00:42:11.242
the agent asking that question, that is a great question.

729
00:42:11.402 --> 00:42:15.362
As we sort of referenced earlier, there are occupations that

730
00:42:15.402 --> 00:42:17.282
are tougher to insure than others.

731
00:42:18.022 --> 00:42:21.842
A big part of the pricing when you're looking at disability insurance is driven

732
00:42:21.882 --> 00:42:25.262
by occupation. That's a big difference versus life insurance, right?

733
00:42:25.342 --> 00:42:28.542
I think everyone on this call probably knows with life insurance, it's health

734
00:42:28.582 --> 00:42:32.132
based, right? Do you qualify for standard rates or preferred or

735
00:42:32.242 --> 00:42:35.402
super-duper preferred, or these different classifications.

736
00:42:35.442 --> 00:42:37.352
It's all your health history and your family history.

737
00:42:38.162 --> 00:42:39.112
And while health, and

738
00:42:40.382 --> 00:42:44.302
to a lesser extent, family history can matter from a disability pricing standpoint,

739
00:42:44.802 --> 00:42:47.882
the bigger determiner is what is your occupation.

740
00:42:48.362 --> 00:42:52.022
If you're a white collar desk jockey, you're going to pay less pound for

741
00:42:52.102 --> 00:42:55.702
pound than someone who gets on the roof with a

742
00:42:55.742 --> 00:42:58.042
hands-on type of occupation, for sure.

743
00:42:58.482 --> 00:43:02.258
And there are someBlue collar, if you will, some manual duty

744
00:43:02.298 --> 00:43:06.258
occupations that are hazardous enough that a lot of the carriers won't offer

745
00:43:06.298 --> 00:43:10.038
coverage at all. But that's where you see we've got some carriers that

746
00:43:10.098 --> 00:43:11.118
are much more

747
00:43:12.278 --> 00:43:16.158
willing to insure those occupations, oftentimes with more limited options

748
00:43:16.218 --> 00:43:19.848
than, say, a white-collar person would get, but nonetheless have meaningful

749
00:43:19.938 --> 00:43:23.758
coverage. And then we've got that Lloyd's marketplace, and some

750
00:43:23.818 --> 00:43:27.578
other outlets if we need to go there if it's a really, really dangerous occupation.

751
00:43:27.658 --> 00:43:31.578
So I would say we would need to look at the exact specs of

752
00:43:31.638 --> 00:43:34.398
the roofer situation case by case.

753
00:43:34.478 --> 00:43:37.298
But yes, we should have options for a roofer.

754
00:43:38.418 --> 00:43:42.138
Very good. Is disability insurance a use it or

755
00:43:42.238 --> 00:43:43.758
lose it type of insurance?

756
00:43:45.178 --> 00:43:46.398
Yeah, another good question.

757
00:43:48.038 --> 00:43:49.798
And this comes up quite often with clients.

758
00:43:50.358 --> 00:43:54.138
I would generally say that it works much like an auto

759
00:43:54.178 --> 00:43:55.718
insurance or homeowner's insurance policy.

760
00:43:55.918 --> 00:43:56.298
If you don't

761
00:43:57.138 --> 00:43:59.898
have a claim, then you see no benefit.

762
00:43:59.968 --> 00:44:03.558
So you're paying premium for the risk. It's like term life insurance, right?

763
00:44:03.658 --> 00:44:06.378
You're paying a premium for that mortality risk.

764
00:44:06.778 --> 00:44:10.758
However, there are a couple of companies out there that have what's called a return

765
00:44:10.798 --> 00:44:14.598
of premium feature. And so for some extra premium, you

766
00:44:14.658 --> 00:44:18.538
can build in essentially a little slush fund that if you

767
00:44:18.578 --> 00:44:22.138
don't have a disability claim at some point in the future, and it's

768
00:44:22.198 --> 00:44:25.808
usually way down the road, at that 65 or 67

769
00:44:26.378 --> 00:44:26.638
age

770
00:44:28.478 --> 00:44:31.158
threshold, you get your premium back.

771
00:44:31.938 --> 00:44:35.078
And so that can be very attractive, especially for someone that says, "I don't

772
00:44:35.098 --> 00:44:36.278
really think this is going to happen to me.

773
00:44:36.338 --> 00:44:40.258
I don't want to just throw away my dollars." But understand, the premium for that

774
00:44:40.298 --> 00:44:41.818
feature is quite expensive, right?

775
00:44:41.958 --> 00:44:45.798
So you're going to add a lot of dollars to your premium cost to have

776
00:44:45.858 --> 00:44:49.698
that feature. And I would also say the younger you are, the better that feature

777
00:44:49.738 --> 00:44:53.298
looks. So if you've got a prospect in their 50s or

778
00:44:53.398 --> 00:44:57.378
older, the return of premium feature's not going to be that attractive just because

779
00:44:57.398 --> 00:44:58.858
it's so expensive and,

780
00:45:00.918 --> 00:45:02.618
in many cases, just not affordable.

781
00:45:02.658 --> 00:45:06.298
But there are some options there to look at and certainly entertain.

782
00:45:07.718 --> 00:45:11.658
I would mention too, just real quickly, some of the policies, really almost all

783
00:45:11.718 --> 00:45:13.118
these policies, have some

784
00:45:14.098 --> 00:45:17.338
bells and whistles, if you will, some value-added features built in, and some of

785
00:45:17.398 --> 00:45:17.658
them

786
00:45:19.218 --> 00:45:20.978
really do add a lot of value.

787
00:45:21.958 --> 00:45:25.538
For example, the Ameritas policy has

788
00:45:26.678 --> 00:45:29.198
what they call a non-disabling injury benefit.

789
00:45:29.718 --> 00:45:33.478
So if somebody suffers an accidental injury, and it

790
00:45:33.518 --> 00:45:37.398
requires medical treatment, could be any part of their body or natural teeth, so it

791
00:45:37.418 --> 00:45:41.258
could be a chipped tooth even, going to the dentist, and they're not

792
00:45:41.298 --> 00:45:42.398
disabled from that,

793
00:45:43.638 --> 00:45:45.478
the policy will pay a little one-time benefit

794
00:45:46.438 --> 00:45:50.168
of $500. So that's another way to get some

795
00:45:50.258 --> 00:45:52.658
value, even if you never become disabled.

796
00:45:52.978 --> 00:45:53.088
But

797
00:45:53.898 --> 00:45:54.847
those kind of injuries

798
00:45:55.758 --> 00:45:59.318
happen to everybody. Most people will have one or more of those over the years.

799
00:45:59.738 --> 00:46:02.098
So that's another way you get some value out of the policy.

800
00:46:03.358 --> 00:46:04.118
Yeah. Great point.

801
00:46:04.168 --> 00:46:08.078
And I've seen you guys do, which I don't think I've seen anybody

802
00:46:08.138 --> 00:46:11.358
else do it, is that if somebody asks for a proposal,

803
00:46:12.058 --> 00:46:13.418
you can give them a

804
00:46:14.338 --> 00:46:18.178
set of scenarios, good, better, best, and let

805
00:46:18.238 --> 00:46:20.467
them see sort of what their options are,

806
00:46:21.498 --> 00:46:25.118
which is pretty cool. So I would encourage

807
00:46:25.138 --> 00:46:28.858
folks, when you're getting a quote, have

808
00:46:28.898 --> 00:46:32.438
them do these good, better, best type scenarios and see, because

809
00:46:32.738 --> 00:46:34.898
people want choices. And

810
00:46:35.838 --> 00:46:39.348
just thinking about cost on these things, I've had a disability policy,

811
00:46:40.338 --> 00:46:42.288
gosh, close to 40 years, and

812
00:46:43.118 --> 00:46:46.838
I was quite a bit younger. The premiums are level unless I

813
00:46:46.998 --> 00:46:50.138
take advantage of some additional purchase options.

814
00:46:50.798 --> 00:46:54.398
But man, I wouldn't want to think what the premium would look like now.

815
00:46:55.098 --> 00:46:59.078
So I'm glad I got that when I was younger and

816
00:46:59.278 --> 00:46:59.958
more beautiful.

817
00:47:02.378 --> 00:47:03.478
Amen. Amen.

818
00:47:05.298 --> 00:47:09.278
Okay. The next question, they're asking, do these cover

819
00:47:09.298 --> 00:47:11.838
mental health or stress-related

820
00:47:12.778 --> 00:47:13.378
clients?

821
00:47:14.458 --> 00:47:14.678
They-

822
00:47:16.078 --> 00:47:16.088
Sure.

823
00:47:16.118 --> 00:47:16.918
Oh, go ahead, Mike.

824
00:47:17.978 --> 00:47:19.317
No, that's fine, Jim. Jump in.

825
00:47:19.358 --> 00:47:20.377
Okay. Yeah. No,

826
00:47:22.398 --> 00:47:24.498
generally speaking, the answer to that question is yes.

827
00:47:26.018 --> 00:47:26.638
Absolutely.

828
00:47:27.858 --> 00:47:31.118
Depression, anxiety, things of that nature,

829
00:47:32.238 --> 00:47:32.378
that

830
00:47:33.598 --> 00:47:37.078
can be disabling. Absolutely. And that is certainly legitimate.

831
00:47:37.958 --> 00:47:41.238
The issues you look at there are if there's a

832
00:47:41.298 --> 00:47:45.138
history of that already when the person

833
00:47:45.158 --> 00:47:49.018
applies, what's going to happen is any offer for

834
00:47:49.058 --> 00:47:53.048
coverage, if the person's otherwise in good health, they'll get approved for

835
00:47:53.058 --> 00:47:55.858
what they applied for, but the policy's going to include an

836
00:47:55.898 --> 00:47:59.758
exclusion for mental health issues. Right?

837
00:47:59.838 --> 00:48:02.648
So if someone's already being treated for depression or anxiety at the time they

838
00:48:02.648 --> 00:48:04.208
apply, then that

839
00:48:04.238 --> 00:48:07.678
type of condition's going to be

840
00:48:07.718 --> 00:48:11.638
excluded. Just like if someone's, Mike mentioned earlier, just like

841
00:48:11.698 --> 00:48:15.358
if someone's seeing a chiropractor because they get low back

842
00:48:15.438 --> 00:48:15.758
pain,

843
00:48:17.958 --> 00:48:20.958
back pain's going to be excluded, right, on a policy that's approved.

844
00:48:21.018 --> 00:48:24.878
So, any existing health condition that can lead to a

845
00:48:24.918 --> 00:48:26.858
disability is going to get excluded.

846
00:48:29.238 --> 00:48:31.298
So yeah, that falls under that category.

847
00:48:31.598 --> 00:48:34.558
The other thing I'd say is that's the one type of

848
00:48:34.598 --> 00:48:37.558
disability where with a lot of the products,

849
00:48:38.578 --> 00:48:42.198
you'll see some built-in limitations, because unfortunately,

850
00:48:42.258 --> 00:48:45.988
although those are legitimate, can be legitimate claims,

851
00:48:46.038 --> 00:48:49.498
absolutely, that's also where you see a lot of the fraud because it's harder to

852
00:48:49.538 --> 00:48:50.618
objectively prove

853
00:48:51.518 --> 00:48:54.618
depression or anxiety and how severe it is and so on.

854
00:48:54.678 --> 00:48:58.588
So a lot of times you'll see policies that say, "Hey, for generally speaking,

855
00:48:58.618 --> 00:49:01.958
this policy's going to pay benefits for up to age

856
00:49:02.138 --> 00:49:06.068
65, or for 10 years," or whatever. However, if it's

857
00:49:06.978 --> 00:49:10.938
a mental health condition, if it's depression, anxiety or stress,

858
00:49:11.438 --> 00:49:15.158
it's only going to pay for 12 months or for 24 months, that sort of thing.

859
00:49:15.198 --> 00:49:18.778
So it is a little unique, but bottom line, it is covered

860
00:49:19.786 --> 00:49:23.656
Yeah, and drug alcohol typically is lumped into that mental nervous.

861
00:49:23.686 --> 00:49:27.626
So if there's substance abuse issues going on, that generally

862
00:49:27.666 --> 00:49:29.306
would have similar limitations.

863
00:49:31.186 --> 00:49:31.826
Thank you.

864
00:49:32.086 --> 00:49:35.766
But some products don't, right? Some products will cover the mental

865
00:49:35.826 --> 00:49:39.766
nervous, drug alcohol type disabilities all the way through the

866
00:49:39.806 --> 00:49:43.606
benefit period, all the way to 67 or 70 if you've got that

867
00:49:43.646 --> 00:49:44.566
long a benefit period.

868
00:49:46.406 --> 00:49:49.866
What's the maximum age, or what's the age ranges that you guys

869
00:49:50.246 --> 00:49:54.226
offer for disability? Because there's a question about protection beyond a certain

870
00:49:54.346 --> 00:49:54.606
age.

871
00:49:55.706 --> 00:49:59.346
Yeah. So generally, the industry kind of stops offering this coverage at age

872
00:49:59.466 --> 00:50:02.866
60. That's generally the oldest age you can buy coverage.

873
00:50:03.266 --> 00:50:04.846
Now, benefit periods go beyond that.

874
00:50:04.906 --> 00:50:08.806
As we've talked about, how long the benefit actually gets paid

875
00:50:09.306 --> 00:50:13.296
can go to 67, and there's still a few carriers that offer a 70,

876
00:50:13.386 --> 00:50:17.106
age 70 benefit period. But they're not going to sell a new

877
00:50:17.146 --> 00:50:21.076
policy beyond age 60. Now, we do have a couple of carriers that

878
00:50:21.106 --> 00:50:22.206
will go to 64.

879
00:50:23.646 --> 00:50:26.906
So there are a couple of options for those that are between 60 and

880
00:50:27.086 --> 00:50:30.726
64 to get coverage. Now, there's some limitations at those older ages.

881
00:50:30.766 --> 00:50:34.696
You can't get as much benefit. Some of the bells and whistles, cost of

882
00:50:34.726 --> 00:50:37.566
living, those kind of things you're not going to be able to put on the policy.

883
00:50:37.666 --> 00:50:39.166
But you can still get the base

884
00:50:40.086 --> 00:50:40.606
coverages

885
00:50:41.606 --> 00:50:45.546
between 60 and 64. And then if somebody's over 64 and

886
00:50:45.586 --> 00:50:49.356
trying to get coverage in place, then we have to go to that low age,

887
00:50:49.466 --> 00:50:53.366
outside the box marketplace, and there are some options there,

888
00:50:53.446 --> 00:50:56.766
but boy, again, they're pretty expensive, and we don't see a lot of people

889
00:50:56.846 --> 00:51:00.046
implementing those plans typically at that age.

890
00:51:00.846 --> 00:51:04.466
Really, you're entering the age where you're really going to be pivoting to a

891
00:51:04.506 --> 00:51:08.346
long-term care policy anyway. So at those older

892
00:51:08.406 --> 00:51:12.226
ages, LTC is really probably the option you want to lean

893
00:51:12.306 --> 00:51:12.965
into a lot of-

894
00:51:13.446 --> 00:51:13.806
Yeah.

895
00:51:14.966 --> 00:51:18.926
Agreed. That's typically if an

896
00:51:18.966 --> 00:51:21.976
agent does approach us with a case like that, we're typically going to steer them

897
00:51:21.986 --> 00:51:23.506
in that direction. Yeah, agreed.

898
00:51:26.166 --> 00:51:30.066
The next question's asking, will disability insurance policies pay

899
00:51:30.105 --> 00:51:32.846
out in addition to other clients' coverages?

900
00:51:36.326 --> 00:51:36.766
Yes.

901
00:51:37.786 --> 00:51:40.726
So the other potential sources of

902
00:51:41.746 --> 00:51:45.626
income that a disabled person might get, one would be Social

903
00:51:45.686 --> 00:51:47.376
Security Disability. We haven't really

904
00:51:48.266 --> 00:51:51.826
talked about that in depth on this call, but we can help you with

905
00:51:51.866 --> 00:51:55.526
it if agents want to reach out to

906
00:51:55.566 --> 00:51:57.706
us. But I'll just say, basically,

907
00:51:58.846 --> 00:52:02.426
everyone that works and pays into the Social Security system has

908
00:52:02.526 --> 00:52:05.146
some level of protection from Social Security Disability.

909
00:52:05.666 --> 00:52:06.006
It is

910
00:52:06.806 --> 00:52:08.486
meager. It's hard to get.

911
00:52:09.606 --> 00:52:12.346
It's not anything anyone would want to rely on, but it is there.

912
00:52:13.426 --> 00:52:15.386
I would tell you that with the

913
00:52:16.346 --> 00:52:20.006
individual disability policy, it can be structured to

914
00:52:20.066 --> 00:52:23.806
pay to where the benefit is totally

915
00:52:23.866 --> 00:52:27.146
independent of whether you're getting Social Security Disability benefits or not.

916
00:52:27.895 --> 00:52:29.106
So you could get both.

917
00:52:30.606 --> 00:52:34.446
For a reduced price, you can have part of the benefit be subject to

918
00:52:34.726 --> 00:52:37.946
an offset should the person get Social Security Disability that

919
00:52:38.886 --> 00:52:42.286
reduces the price a little bit, and that's one of those things when, like when

920
00:52:42.326 --> 00:52:45.926
Chris mentioned sort of like a good, better, best type of scenario, that's one of

921
00:52:45.966 --> 00:52:49.706
the factors that you would see a difference between the good and the best.

922
00:52:50.986 --> 00:52:52.596
Aside from Social Security Disability,

923
00:52:53.766 --> 00:52:57.626
the other big thing you'd look at would be group disability coverage if the

924
00:52:58.906 --> 00:53:01.446
client has group disability coverage through their employer.

925
00:53:02.846 --> 00:53:03.025
The

926
00:53:04.326 --> 00:53:07.886
benefits from their individual policy are not affected by whether they're getting

927
00:53:07.926 --> 00:53:11.846
group disability benefits or not, so that's never an offset situation.

928
00:53:12.466 --> 00:53:16.335
It would be factored in upfront when the person's applying as to how much

929
00:53:16.366 --> 00:53:17.236
benefit they can get,

930
00:53:18.326 --> 00:53:21.066
because we don't want to over-insure, we don't want to give someone more,

931
00:53:21.866 --> 00:53:25.206
make it where there's a financial incentive to become disabled.

932
00:53:25.866 --> 00:53:28.026
But once a policy's been issued,

933
00:53:28.866 --> 00:53:32.026
if their circumstances are later that they end up with group disability coverage or

934
00:53:32.046 --> 00:53:35.266
whatever, even if they are over-insured at that point, it doesn't matter.

935
00:53:35.326 --> 00:53:37.446
They're going to get the full benefit from their individual policy.

936
00:53:38.346 --> 00:53:42.106
The last thing I'd mention is along those lines is sometimes if you think about a

937
00:53:42.186 --> 00:53:46.146
car accident or something where there's maybe a lawsuit, there's somebody

938
00:53:46.206 --> 00:53:47.146
else at fault,

939
00:53:48.116 --> 00:53:51.956
there might be some sort of judgment or settlement, that also is

940
00:53:51.966 --> 00:53:55.826
not going to affect the disability benefits paid by the individual

941
00:53:55.846 --> 00:53:56.306
policy.

942
00:53:59.166 --> 00:54:02.906
I know we're nearing the top of the hour, and man, thanks for the great

943
00:54:02.946 --> 00:54:06.446
questions. And the questions just keep on coming here, so I know we're not going to

944
00:54:06.466 --> 00:54:10.376
have a chance to get to all of them. Crystal, if we want

945
00:54:10.406 --> 00:54:14.146
to take maybe two more, but as you see the slide that's up

946
00:54:14.166 --> 00:54:14.466
there,

947
00:54:15.486 --> 00:54:19.346
jot down the contact information for Mike and Jim and give them a

948
00:54:19.406 --> 00:54:23.326
call on these great questions because they would be happy to do

949
00:54:23.386 --> 00:54:27.216
that. And I think they made the point earlier, if you do not

950
00:54:27.346 --> 00:54:30.786
have a disability policy on yourself,

951
00:54:32.486 --> 00:54:34.206
you really need to get one. It's

952
00:54:35.146 --> 00:54:39.026
so important in our industry to have that, and

953
00:54:39.646 --> 00:54:43.246
the compensation is very good. They pay

954
00:54:43.306 --> 00:54:45.876
renewal commissions that are

955
00:54:46.946 --> 00:54:50.916
way above average. A lot of the life insurance policies we sell are

956
00:54:50.946 --> 00:54:54.746
sort of first year only. There's a healthy renewal on

957
00:54:54.806 --> 00:54:58.366
these products. So it's the gift that keeps on giving.

958
00:54:58.526 --> 00:55:02.146
So Crystal, pick the best two here as we wrap up.

959
00:55:02.646 --> 00:55:02.966
Okay.

960
00:55:05.006 --> 00:55:08.546
Does the payout reset after a period of time for future events?

961
00:55:08.846 --> 00:55:11.726
Or if so, what is the grace period?

962
00:55:18.966 --> 00:55:22.606
I'll take a swing at that. I think referring to, so

963
00:55:23.026 --> 00:55:24.846
let's say we have a disability

964
00:55:24.946 --> 00:55:28.814
policyWith a 10-year benefit

965
00:55:28.894 --> 00:55:32.794
period, right? That's just the maximum benefit

966
00:55:32.874 --> 00:55:36.374
period for any one claim. There's ones that are longer, and there's ones that are

967
00:55:36.394 --> 00:55:39.234
shorter, but that's a good middle of the road benefit period.

968
00:55:39.894 --> 00:55:42.414
So let's say somebody's got a policy with a 10-year benefit period.

969
00:55:43.114 --> 00:55:46.854
They have a terrible car accident, and they're disabled

970
00:55:46.954 --> 00:55:48.694
for two years.

971
00:55:50.094 --> 00:55:53.514
So the policy would pay benefits up to two years, then hypothetically, this

972
00:55:53.594 --> 00:55:56.274
person's recovered, they've returned to work, the claim's over.

973
00:55:59.074 --> 00:56:02.854
The next day after they came to work, they were stricken with a terrible illness,

974
00:56:02.914 --> 00:56:05.084
and they're unable to work again,

975
00:56:06.434 --> 00:56:10.334
but for a different reason. So in that scenario, the first claim's over,

976
00:56:10.554 --> 00:56:14.494
but the new claim is going to start over, and there's still a

977
00:56:14.554 --> 00:56:17.434
10-year benefit period there to be had.

978
00:56:17.474 --> 00:56:21.034
So that maximum benefit period is per

979
00:56:21.074 --> 00:56:22.074
disabling event,

980
00:56:23.234 --> 00:56:26.434
right? So someone could have multiple claims.

981
00:56:27.134 --> 00:56:30.494
If there's a permanent disability, of course, this is not going to come into play

982
00:56:30.554 --> 00:56:34.434
because on the first claim, they're going to run out the full benefit period.

983
00:56:36.214 --> 00:56:38.494
But if they're shorter claims,

984
00:56:38.694 --> 00:56:42.614
there's no waiting period in

985
00:56:42.634 --> 00:56:46.354
between if there's two different claims from two different

986
00:56:46.394 --> 00:56:46.974
causes.

987
00:56:48.314 --> 00:56:51.334
If it's the same cause, then what happens is if they

988
00:56:52.434 --> 00:56:56.274
were out on claim for a couple of years, they come back to work, and then due to

989
00:56:56.334 --> 00:56:59.934
that same illness or injury, they have to go back out

990
00:57:00.014 --> 00:57:00.764
again, and

991
00:57:01.774 --> 00:57:04.054
maybe they try to come back to work too soon.

992
00:57:04.454 --> 00:57:08.234
If it's been back to

993
00:57:08.274 --> 00:57:11.934
work six months or a year, because it varies by policy,

994
00:57:12.194 --> 00:57:13.854
but something like six months or a year,

995
00:57:15.174 --> 00:57:18.174
if they've been back to work that long and they go back out, they'd have to

996
00:57:18.974 --> 00:57:21.854
satisfy a new waiting period before benefits would resume.

997
00:57:22.514 --> 00:57:25.794
But if it's been shorter than that time period, then they just pick up where they

998
00:57:25.834 --> 00:57:27.514
left off. There is no waiting period.

999
00:57:27.554 --> 00:57:29.294
They just start getting monthly benefits again.

1000
00:57:31.294 --> 00:57:33.574
Very good. I know we're running out of time, guys.

1001
00:57:33.674 --> 00:57:37.194
I did post on the comments the link where you can find our disability

1002
00:57:37.314 --> 00:57:40.734
page. That's where you can find the quote request form and

1003
00:57:40.814 --> 00:57:44.714
also the contact information. And I'll be able to send

1004
00:57:44.754 --> 00:57:44.894
that

1005
00:57:46.294 --> 00:57:49.074
in the email with the recording for you guys.

1006
00:57:50.854 --> 00:57:52.874
Are we okay to answer one last question?

1007
00:57:53.874 --> 00:57:54.494
Sure.

1008
00:57:54.854 --> 00:57:57.014
There's one interesting question on here.

1009
00:57:58.834 --> 00:58:02.264
What about coverage for pregnancy-related disability?

1010
00:58:05.354 --> 00:58:08.354
Yeah. So this does come up. We see this,

1011
00:58:08.834 --> 00:58:12.804
especially people that have had group short-term disability plans and are

1012
00:58:12.874 --> 00:58:16.814
used to that condition, if you will, being covered and

1013
00:58:16.854 --> 00:58:20.234
having some benefits paid if there's a maternity situation.

1014
00:58:21.234 --> 00:58:25.054
We do have a solution for that with an individual short-term product that does

1015
00:58:25.714 --> 00:58:28.974
pay a nice benefit for a pregnancy.

1016
00:58:29.574 --> 00:58:33.494
However, you do have to, again, have that policy in place before the pregnancy

1017
00:58:33.534 --> 00:58:37.514
occurs. So, the policy would have to be in place at least nine months

1018
00:58:37.534 --> 00:58:40.414
before a claim would be paid on that type of benefit.

1019
00:58:40.454 --> 00:58:42.134
But there are some ways to

1020
00:58:43.094 --> 00:58:43.584
cover that

1021
00:58:44.874 --> 00:58:48.774
with an individual plan. It may make sense once people look at the numbers

1022
00:58:48.814 --> 00:58:51.774
and the cost for that type of coverage to actually self-insure

1023
00:58:53.254 --> 00:58:56.214
that kind of a situation. You've got a little time to plan,

1024
00:58:57.014 --> 00:59:00.924
presumably, if you're doing some family planning and sticking away some

1025
00:59:00.954 --> 00:59:04.274
money to cover your out of work time.

1026
00:59:04.494 --> 00:59:07.564
Typically, these plans are going to pay six to eight weeks of

1027
00:59:07.594 --> 00:59:11.484
benefit after the delivery, depending on if there's a

1028
00:59:11.494 --> 00:59:14.934
C-section involved or not. So you're not going to get a huge

1029
00:59:15.734 --> 00:59:19.314
paycheck, but six to eight weeks is certainly a nice benefit to get in that

1030
00:59:19.334 --> 00:59:19.933
situation.

1031
00:59:21.954 --> 00:59:25.714
One final question, guys. And first of all, thanks so

1032
00:59:25.874 --> 00:59:29.764
much for your knowledge, and obviously we've got a lot

1033
00:59:29.794 --> 00:59:33.694
of interest, folks, in this. But somebody had asked earlier, and I think

1034
00:59:33.734 --> 00:59:35.454
you had a slide that alluded to it.

1035
00:59:37.214 --> 00:59:40.574
Is there a general guideline as far as

1036
00:59:40.654 --> 00:59:44.494
premium for disability? I think I remember way back when

1037
00:59:44.533 --> 00:59:47.954
that you'd pay essentially 2% as a

1038
00:59:47.994 --> 00:59:51.494
disability deal as a part of your total income.

1039
00:59:51.514 --> 00:59:52.194
You pass.

1040
00:59:52.254 --> 00:59:52.494
Is that-

1041
00:59:52.614 --> 00:59:54.434
You pass, Chris, you pass the test.

1042
00:59:54.454 --> 00:59:54.483
Mm-hmm.

1043
00:59:55.074 --> 00:59:58.314
A great memory. That's exactly right. The 2% rule, we call it.

1044
00:59:58.594 --> 01:00:02.354
And again, it's a ballpark. There's a lot of factors that come into

1045
01:00:02.394 --> 01:00:06.384
play to determine a disability insurance premium, age, and occupation, and all

1046
01:00:06.474 --> 01:00:08.744
that. But generally, if you take a person's

1047
01:00:10.154 --> 01:00:12.354
gross earnings and you just

1048
01:00:13.534 --> 01:00:16.564
multiply that by 2%, so $100,000 a year salary,

1049
01:00:17.134 --> 01:00:20.654
2% is 2,000 bucks. So you can expect a

1050
01:00:20.664 --> 01:00:22.624
$2,000 premium is going to

1051
01:00:23.754 --> 01:00:27.014
probably get you a pretty nice disability plan. Again, that's a ballpark.

1052
01:00:27.114 --> 01:00:30.374
It's going to be more, in some cases, less than others, but- Yeah.

1053
01:00:31.614 --> 01:00:35.564
And I would add, as Chris mentioned earlier, when we do these kind of good, better,

1054
01:00:35.654 --> 01:00:36.304
best deals,

1055
01:00:38.154 --> 01:00:38.754
we're going to show

1056
01:00:39.674 --> 01:00:42.154
an option or two that is well below that,

1057
01:00:42.954 --> 01:00:44.354
and then maybe an option that's above that.

1058
01:00:44.934 --> 01:00:48.594
So that 2%, I think another way to look at that is

1059
01:00:48.674 --> 01:00:52.034
that seems to be the rule of thumb as to what clients are

1060
01:00:52.174 --> 01:00:53.454
willing to spend.

1061
01:00:55.254 --> 01:00:59.214
And so as opposed to at every age or every occupation, that's what the

1062
01:00:59.234 --> 01:01:03.043
premium's going to be. It's really more that, that seems to be the typical

1063
01:01:03.074 --> 01:01:06.374
budget or premium tolerance some people would have.

1064
01:01:06.394 --> 01:01:09.674
But if their premium tolerance is lower or higher, we can accommodate.

1065
01:01:12.254 --> 01:01:14.514
Good stuff. Guys, thank you so much.

1066
01:01:14.584 --> 01:01:15.714
And folks,

1067
01:01:16.754 --> 01:01:20.654
give Mike and Jim a call. I'd like to keep them out of the bar, so keep them

1068
01:01:20.694 --> 01:01:24.104
busy with all of the opportunities for

1069
01:01:24.154 --> 01:01:27.834
disability that they have available. Folks, we will talk to you soon.

01:01:27.914 --> 01:01:29.114
I know we've got several

1071
01:01:30.254 --> 01:01:33.974
webinars set up. Crystal will be conducting

1072
01:01:34.054 --> 01:01:38.034
some live trainings here shortly, and let

1073
01:01:38.094 --> 01:01:40.634
us know how we can assist you in your sales.

1074
01:01:41.434 --> 01:01:42.354
You all have a great week