Discover DI

Discover DI | from Ameritas Life/Ameritas Life of New York


For Producer use only. Not for use with clients.DI 1355 7/12

Guaranteed Standard Issue (GSI)Disability Income

GSI 101 – All You Need to Get Started Selling GSI


For Producer use only. Not for use with clients.

• Disability Income insurance (Forms 4501NC, 4502GR and 4503BOE) is issued by Ameritas Life Insurance Corp. in approved states. In New York, Disability Income insurance (Forms 5501-NC, 5502-GR and 5503-BOE) is issued by Ameritas Life Insurance Corp. of New York.

• When implementing a GSI program, you should always advise your clients to speak with an attorney to determine if there are ERISA issues.

• This information is provided by Ameritas Life Insurance Corp. (not licensed in New York) and Ameritas Life Insurance Corp. of New York. Each company is solely responsible for its own financial condition and contractual obligations. For more information about Ameritas®, visit ameritas.com

• Ameritas DI® is a registered service mark of Ameritas Holding Company. Ameritas® is a registered service mark of Ameritas Mutual Holding Company. ©2012 Ameritas Mutual Holding Company

Disclosures



Agenda

• What is Guaranteed Standard Issue (GSI)?

• Why sell GSI?

• Who is a good GSI prospect?

• GSI Highlights

• Plan Design

• Guidelines

• Product

• How to submit a request for proposal (RFP)

• GSI sales support team services

• Q & A



What is GSI?

• Not a product, but a streamlined underwriting process

• Applicants who pass the gatekeeper questions will be issued a standard policy with no medical exclusions or ratings

• Gatekeeper questions:

• Missed work due to injury or illness in past 6 months?

• Ever experienced specified losses (sight, hearing, speech, two limbs)?

• Employer-sponsored multi-life plan

• Employer-employee relationship – 1099 possible

• Individual policies are discounted using unisex rates



What is GSI?

• GSI is an executive/white collar benefit targeting occupation classes 6A, 5A, 4A and 3A

• Medical professionals not eligible

• Special program for medical residents

• GSI plan can supplement Group LTD or stand alone

• Plan design at the group level – can vary by class



Why GSI?

• Your clients need it

• Threat of disability is real

• Group LTD may not be adequate

• Everyone wins: Employer-Employee-You

• “Multiple policies – Minimal underwriting” means more premium with less time invested

• Cross-selling opportunities with key employees

• Writing agent commissions are vested for 10 years – No Agent of Record take-over



Objections to Selling Individual DI Insurance

• Expensive

• Detailed financial documentation

• Extensive medical underwriting

• Too many choices - confusing



GSI answers objections

•Expensive

•Detailed financial documentation

•Extensive medical underwriting

•Too many choices

•Permanently discounted premiums

•Census-only financial documentation

•Gatekeeper questions

•Plan design done at the group level



LTD Shortfall

Base Annual Income

Total Income with Bonus

Gross Monthly LTD Benefit

Net Monthly

LTD Benefit*

% Net Income Replaced*

$100,000 $125,000 $5,000 $3,750 48%

$130,000 $160,000 $6,000 $4,500 45%

$180,000 $230,000 $6,000 $4,500 31%

$240,000 $300,000 $6,000 $4,500 24%

Consider this common example: employer-paid Group LTD plan covers 60% of base income to a maximum of $6,000. The benefit is taxable.

* Tax bracket assumptions: 25%



GSI is Beneficial for Employers

• Important perk for key employees• Attract/retain talent, increase employee job satisfaction and

productivity

• Great flexibility:• Paid by company, employee or both (cost-share)

• Different levels of coverage by class

• Deductible business expense for employer-paid premiums (applies to non-owner premiums)

• Fixed expense - Noncancelable option guarantees level premium

• Voluntary plan - additional benefit offered with no additional cost to the employer



GSI is Beneficial for Employees

• GSI Underwriting means:

• No exams or labs

• Short-form application

• Gatekeeper questions: actively at work, presumptive loss of use

• Applicants who satisfactorily answer gatekeeper questions will be issued a standard policy

• Streamlined financial underwriting – census from employer for GSI amount and up to $5,000 of monthly benefit above GSI level




Employer-Paid Voluntary Discount

5-9 lives 10-49 eligible 15%



100+ lives 300+ eligible 30%

• Permanently discounted, unisex rates




• Better disability income insurance policy compared to Group LTD• Stronger provisions

• No offsets

• Individually owned

• Fully portable

• Higher income protection with GSI• LTD maximum benefit for highly compensated often not

enough – reverse discrimination

• GSI covers total comp vs.. base salary only (most LTD plans)

• Most LTD plans employer paid – benefits taxable



GSI is Beneficial for the Producer

• GSI makes your life easier…multiple contracts with minimal underwriting

• Great cross-selling opportunities with high earners

• Effective use of your time - favorable rate of return on time invested

• Strong commissions

• 40% to 30% FYC - based on case size

• 10% renewals

• 2 - 5% renewal bonus – based on in-force premium and persistency

• You are 100% vested – no threat of losing commissions to Agent of Record letter



A Closer Look at Producer Compensation

Write 3 cases with 5 lives per year:

$54,651 cumulative commission possible at end of 5 years

$203, 868 cumulative commission possible at end of 10 years






$1,389,153 cumulative commission possible at end of 10 years



Marketing Opportunity

0

10

20

30

40

50

60

70

80

90

Physicians Dentists Attorneys Corp. Execs Prof. Managers MiddleIncome

Pe

rce

nt

of

Pe

ne

tra

tio

n

Individual DI Insurance Market Penetration by Profession

Source: UnumProvident; The Guide of Understanding the Life Insurance Industry Banc of America Securities Inc. 2001



How to Identify a Good GSI Prospect

• 6A-3A occupational classes

• Executive carve-outs in blue/grey-collar industries

• $75,000+ incomes

• LTD plan does not fully cover highly compensated

• Financially stable company/industry

• Average age less than 50

• Male/Female ratio – 60/40

• Employer• Offers other employee benefits

• Supportive of marketing plan/endorses GSI plan

• Group meetings and access to contact employees



How to Indentify a Good GSI Prospect

Demographic Ideal Case Difficult Case

Occupation Class 15+ Execs < 5 Execs

Gender > 70% Male < 50% Male

Ages Avg Age < 50/ no 60’s Avg Age >50/10% + 60

Office Locations 1 Location/1 state Multiple States

Group LTD 60% or less; taxable 60% Tax Free / 70% Taxable

Covered Earnings LTD Base only LTD all sources

Source of Earnings W-2, Bonus & Commissions High fluctuation

Income Ranges $75k+, above LTD cap $50k-, within LTD cap

Business Stability 5 yrs + in business < 2 yrs or seasonal



Plan Design Highlights

• Employer pay

• Minimum - 5 eligible lives

• Participation required - 100%

• GSI

• 5-9 lives - up to $2,500

• 10+ lives - up to $8,000

• Voluntary

• Minimum – 10 eligible lives

• Participation required - Greater of 10 enrolled lives or 25%

• GSI – up to $5,000, based on size and demographics of group

• Core/Buy-up

• Employer pay core - 100% participation

• Voluntary buy-up - Participation varies (10-25%) based on plan design



GSI Guidelines

• If combined with Group LTD:

• Executive class carved out of LTD; or

• Traditional combo with LTD base + IDI on top; or

• Reverse combo with IDI base + LTD on top

• Full range of own occupation definitions available on 10+ cases

• Riders and options available (varies by state):

• Noncancelable or Guaranteed Renewable

• 90, 180, 365 EP / 2, 5, 10 years, age 65, 67, 70 BP

• Residual, COLA, CAT, SIS (if no LTD)

• Employer paid / 21+ lives

• No limitation on Mental/Nervous/Drug/Alcohol conditions



Product Highlights

• Noncancelable (NC) or Guaranteed Renewable (GR) options

• 3 Definitions of Total Disability* (including True Own Occupation)

• Unlimited MNDA – Employer pay 21+ lives

• Basic Residual or Enhanced Residual

• Good Health*

• Nondisabling Injury*

• COBRA Premium*

• Presumptive Total Disability

• Survivor*

• Rehabilitation

• Catastrophic Disability Rider*

• COLA Rider - 3% Simple or 6% Compounded

• No FIO (except Medical Residency program)

*Subject to state variations



GSI/Focus 10 Combo Plan

• Employer groups of 5 -19 employees

• Employer paid, 100% participation

• Employee owned

• Up to $4,000 monthly GSI Benefit

• Focus 10 Life Benefit:

5 – 9 employees - $100,000

10 – 19 employees – Choice of $100,000 or $150,000 (or combo of both)

• Consolidated monthly bill

• Only a census is needed for a quote



How to Request a Proposal

• Complete one page RFP form

• Includes all the information we need to consider a GSI offer

• Submit census (Excel)

• Employee name

• Gender

• DOB

• Occupation or Job Title

• Income (base and bonus separated)

• Location



Regional DI-GSI Wholesale Directors

• Extension of the DI Product Management Department

• Our combined individual DI insurance and group LTD expertise is extensive

• We are committed and ready to support and equip producers to sell GSI business



GSI Sales Support and Expertise

• We make it easy for you!

• Prepare proposals

• Formal offer letter

• Detailed premium and benefit summary

• Competitive analysis

• Consultation on plan design

• Pre-filled applications

• Customized enrollment packets

• Employer and employee meetings with PowerPoint presentations

• We walk you through GSI process step-by-step



Disability Income Regional Wholesale Directors

NDND

SDSD

NENE

KSKS

OKOK

TXTX

MNMN

IAIA

ILIL ININ

WIWI

MIMI

MSMS

WAWA

OROR IDID

MTMT

WYWY

CACA

NVNV UT COCO

AZAZ NMNM

AKAK

OOHH

VAVA

TNTN NCNC

SCSC

GAGAALAL

FLFL

LALA

PAPA

HIHI

NYNY

MEMEVTVT

NHNH

MAMA

RIRICTCT

NJNJDEDE

MDMDWVWV

KYKYMOMO

ARDCDC

Northeast Region2842 Main St., PMB 335Glastonbury, CT 06033PH: 860-291-9400, Fax 860-291-9436Debra Guerard, DI Wholesale [email protected] McKeever, Sales Support [email protected]

Central Region200 NE Missouri Rd., Suite 200Lee Summit, MO 64086Ph: 816-251-4515, Fax: 816- 251-4599 Tim O'Rourke, DI Wholesale [email protected] McKeever, Sales Support [email protected]

Southern Region549 E. Sandy Lake Rd., Suite 100Coppell, TX 75019Ph: 972-393-3070, Fax: 972-304-3076Mike Evans, DI Wholesale [email protected] McKeever, Sales Support [email protected]

Western Region10117 SE Sunnyside Rd., Suite F521Clackamas, OR 97015Ph: 503-427-1717Laura Leung, DI Wholesale [email protected] McKeever, Sales Support [email protected]



Questions?



Key Contacts

• Your Agency or Brokerage Manager

• Your Regional DI Wholesale Office

• Your Ameritas Sales Development team

• The DI Product Management team

Discover DI | from Ameritas Life/Ameritas Life of New York For Producer use only. Not for use with clients. DI 1355 7/12 Guaranteed Standard Issue (GSI)

Documents

ameritas di

ameritas life insurance

gsi slide

gsi program

medical residents gsi

good gsi prospect

class slide