Protection Products

Level the DI Playing Field with Multi-Life


Protection

When it comes to the insurance industry, and specifically to how products are priced, men and women aren’t created equal.

Statistics prove that women live longer. So, when purchasing life insurance, they pay smaller premiums than men. Unfortunately, when it comes to disability insurance, that’s not the case.

All things being equal, a female will pay 30-50% more for a disability policy than her male counterpart. It’s because women are more likely to file a claim – not just for pregnancy, but for all types of claims.

The good news is that there is a solution. Multi-life. Most carriers offer some type of multi-life option, but I’m going to focus on Principal for this example. In addition to being one of the largest DI carriers in the market, they are also more flexible, and they offer unisex pricing options. To qualify as multi-life, they require policies to be placed on three or more people with a common employer. There is no requirement for the employer to contribute to the premium, although that’s certainly an option. In fact, the policies can be billed directly with no employer involvement.

Let’s use an example

Here we'll look at a 40-year-old female business owner in a white-collar occupation who lives in Indiana. For her policy, we’ll use a 90-day waiting period to age 65, and a $5,000 monthly benefit with residual. The premium for the policy, without any multi-life discounts, is $3,500 annually.

Now let’s assume that the client buys policies on two other employees. We just hit the magic number for making this a multi-life plan. Those two policies, after the discounts, can have annual premiums as low as $165 — which we can help you design. The client is paying a total of $330 per year for these two polices.

And now that the plan qualifies for multi-life, our client’s premium of $3,500 on her own policy is discounted to $2,300 annually. Her new premium, along with the $330 for her employees’ policies puts her total annual bill at $2,630. That’s an additional 25% savings, and her premium discount is locked in for the life of her policy — even if the other two policies are canceled later.

Buy more. Pay less.

I believe that’s what we call a win-win.

Your Ash DI team can help you structure a multi-life plan for male and female owners. The discount on the females is much more significant — it lowers the female rate to be similar to that of a male — but don’t let that stop you from considering multi-life plans regardless of gender.

Take a minute to consider small businesses you work with. If multi-life is a viable solution to protect them and their employees, let us know. We’re here to help.

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disability insurance protection DI multi-life policy

Summer’s Slippery Slope


Protection

Summertime is quickly approaching, and your clients’ outdoor activity schedules are about to get busy. Walking, running, hiking, biking, baseball, softball … all are great ways to enjoy the outdoors. Though these activities can lead to a lot of fun … they can also lead to unforeseen accidents and injuries … which can lead to medical expenses and time off work … which can lead to financial devastation for your clients. 

Yes, it can be a slippery slope, both figuratively and literally. Your clients hopefully won’t be injured this summer … but, what if they are? With disability insurance, you can help them plan for any circumstances that affect their ability to earn a living with. 

Disability insurance – or, as we like to call it, paycheck protection insurance – is a vital coverage to protect your clients’ financial future. Don’t let them believe “It won’t happen to me” or, “If I become disabled, I will qualify for Social Security.” 

Know the facts: 

  • It CAN happen: More than 1 in 4 of today's 20-year-olds will become disabled before they retire,1 and the average individual disability claim lasts 31.6 months.2

  • Many people do not have any financial protection in place if a disability event does occurs – about 100 million workers are without private disability income insurance.1

  • Nearly 68 percent of all Social Security disability claims applications were denied in 2015.3 If your client does qualify, it may take more than a year to go through the process. 

 

No matter what your clients plan to do this summer, make sure they have financial protection in place to account for the unexpected. Protect their paycheck – and their financial future – with disability insurance. 

 

1U.S. Social Security Administration, Fact Sheet, February 7, 2013

2Gen Re, U.S. Individual DI Risk Management Survey 2011, based on claims closed in 2010

3 Social Security Administration, Disabled Worker Beneficiary Statistics, ssa.gov

 

About the Author

As vice president of disability income and long-term care insurance at Ash Brokerage, Tim Kukieza knows coverage he helps place will dramatically and positively impacts clients’ lives when they need it most. His vast knowledge comes from more than 20 years of experience in the insurance industry, including working with a number a carriers before joining Ash Brokerage.  

DI Disability

Disability Insurance: Key Coverage for Key People


Protection

Do you have clients who are business owners? Then you should be asking them some key questions: 

  • Do they have key employees who are critical to the success of their business? Are the business owners themselves the key employees? 

  • What would it mean to the business if their key employees were not able to work every day? Lost sales? Lost revenue? Lost clients? A potentially lost business? 

Nearly every business has key employees who are vital to its success – without them, the negative effects could be catastrophic. That’s why we’re having more conversations than ever about key person disability insurance. This type of coverage is critical to the planning process for business owner clients. 

How Key Person Disability Insurance Works

  • The coverage provides an indemnity benefit to the business owner, via lump sum or monthly payment, if/when the key person becomes disabled 

  • The policy’s overall benefit is a multiple of the insured’s income – usually up to two times their salary, but there may be some variation

  • Normally, there is a 90-day waiting period, but again this could vary

  • The benefit can be paid out for two years

You may already be familiar with key person life insurance – that’s a great product, too. The key difference is the qualifying event. With life insurance, it’s the death of the key person, but with disability coverage, it’s a disabling injury or illness. 

Either event could be devastating to the business, but there’s a much higher probability of being disabled during your working years versus dying. So, if your clients want to insure a key employee with life insurance, they should absolutely insure them with disability insurance as well. 

 

About the Author

As vice president of disability income and long-term care insurance at Ash Brokerage, Tim Kukieza knows coverage he helps place will dramatically and positively impacts clients’ lives when they need it most. His vast knowledge comes from more than 20 years of experience in the insurance industry, including working with a number a carriers before joining Ash Brokerage.  

DI Key Person Disability Insurance Business Owners

What Would June Cleaver Do?


Protection

The 1950s “Leave it to Beaver” family life isn’t the norm for the 21st century family today. The breadwinner of the family isn’t always the husband … and the caregiver isn’t always the wife. Even though we see this every day, we don’t always remember it when looking at clients’ financial plans for their families. 

If June were the breadwinner, how would she keep the Cleaver family running if something happened to her?  How would they pay the bills? How would they put food on the table? How would they pay for child care or house cleaning if Ward needed to go back to work? 

There are so many things we take for granted today that could be gone tomorrow. While we can never know when an unexpected event will occur, we can be prepared for the potential financial impacts – no matter our gender. 

A strong disability policy would be just one of many solutions June would need to consider. If she became hurt or sick, the policy would replace her paycheck and help with any extra medical bills. This alone could create a level of peace and comfort to shift the focus away from her physical distress and help her get back to her good ol’ self in no time. 

Put It In Practice: No matter a person’s role or financial contribution to their family, what they provide is invaluable. Help them prepare for an unexpected event and its potential impact. 

DI Disability #FinancialFinesse

Firefighters: Paycheck Protection is Possible


Protection

Firefighters put their lives on the line every day; when they go to work, it’s no surprise they risk more than an average employee. Disability income insurance for firefighters is hard to come by, but Ash Brokerage works with carriers that will insurance this occupation. Due to the nature of the job and hazardous activities associated with fighting fires, however, the products available offer limited benefit amounts and restricted periods. 

Typically, the policy will cover only total disability, and the benefit period will be a maximum of two years. Some carriers may offer a limited partial disability benefit, which means the policy holder would be limited from doing some of his/her daily activities, but not totally disabled. In this case, the insured would receive a reduced benefit. 

It’s also important to note most firefighters are considered government employees. All disability carriers, no matter your occupation, consider government employees different from private business employees because government employees typically have part of their pension “pushed out” to them if they become disabled. Usually, there’s no way to stop this from happening, so carriers view this payment as a form of disability benefit. This limits the amount of coverage government employees can purchase, as compared to a privately employed person who doesn’t have any disability coverage. 

If you have any clients who are firefighters, the least you can do is look into the possibility of obtaining disability income insurance to protect their paycheck. After all, they protect your home, business and family every day. 

 

disability insurance DI paycheck