Policy Features and Key Differences
Proposed Coverage Details ProVider Plus ProVider Plus Limited
Base Policy $1,000/mo. $1,000/mo.
Optional Benefits
Residual Disability Benefits Residual Disability Benefit
Rider Basic Residual Disability
Benefit Rider
Inflation Protection* 3% Compound Cost of Living
Adjustment Rider 3% Maximum Cost of Living
Adjustment Rider
Future Insurability Coverage† Future Increase Option Rider
$2,000/mo. Benefit Purchase Rider
Extended Benefits Not Included Not Available with Provider
Plus Limited
Catastrophic Disability Benefit Rider Not Included Not Included
Student Loan Protection Rider up to $2,000/mo. up to $2,000/mo.
Unemployment Waiver of Premium Rider Not Included Not Included
Proposed Policy Variables
Elimination Period 90 Days 90 Days
Benefit Period To Age 65 To Age 65
Premium Structure Level Level
Discounts
24 Month Mental and/or Substance-Related
Disorders Limitation Discount Not Available Included - 10%
Discounted Monthly/GOM Premium $37.62 $29.17
Both policies illustrated are built upon our benefit-rich, Non-Cancellable & Guaranteed Renewable ProVider Plus base contract and includes these built in benefits:
• Waiver of Premium Benefit - We will waive any premiums that are due while you are disabled and receiving benefits, and for 6 months after you recover.
• Waiver of Elimination Period - We will waive the elimination period if you become totally disabled within five years after the end of a previous disability that lasted more than 6 months and for which we paid benefits.
• Occupational Rehabilitation Benefit - The insured may be eligible for an occupational rehabilitation benefit that is part of a mutually agreed-upon formal plan.
• Modification and Access Benefit - The insured may be eligible for reimbursement for the cost of workplace modifications that will help you return to gainful employment.
• Presumptive Total Disability - We will consider you totally disabled—even if you are gainfully employed—if you suffer total and complete loss of the sight in both eyes, hearing in both ears; speech; or the use of both hands, both feet, or one hand and one foot, in their entirety. Your loss does not have to be irrecoverable.
• Capital Sum Benefit - An additional lump sum benefit is payable for specified losses: total loss of sight in one eye, or loss of a hand or foot. This benefit equals 12 times your monthly indemnity.
For a complete description of policy benefits and features, ask your representative for a copy of a sample policy.
Policy Features and Key Differences
Policy
Features ProVider Plus
Purposefully Engineered High-Performing Income
Protection
ProVider Plus Limited
Selecting these reduced benefit options results in
a premium savings of $8.45/month.
Definition of
Total
Disability
True Own-Occupation
Totally disabled means that, solely due to Injury or
Sickness, you can not perform the material and
substantial duties of your occupation, even if you
are gainfully employed in another occupation.
True Own-Occupation
Totally disabled means that, solely due to Injury or
Sickness, you can not perform the material and
substantial duties of your occupation, even if you
are gainfully employed in another occupation.
Maximum
Benefit
Period for
Mental and/
or Substance-
Related
Disorders
Same as Policy Benefit Period
Benefits for disabilities caused by mental and/or
substance-related disorders are payable for the full
length of the benefit period.
Limited to 24 months
Benefits for disabilities caused by mental and/or
substance-related disorders are, under the policy,
including any riders, only payable for up to 24
months over the lifetime of the policy, unless you
are continuously confined to a hospital and under
the regular medical care of a physician.
Residual
Disability
Benefits
Residual Disability Benefit Rider
• 15% loss of income threshold.
• No loss of time or duties required.
Basic Residual Disability Benefit Rider
• 20% loss of income threshold.
• Loss of time or duties required.
Inflation
Protection* 3% Compound Cost of Living Adjustment
Rider
Provides a fixed 3% annual compounded
adjustment of the monthly indemnity while benefits
are payable in the same claim.
After recovery, increases remain at no extra
charge to age 65.
3% Maximum Cost of Living Adjustment Rider
Provides a maximum 3% annual compounded
adjustment of the monthly indemnity while benefits
are payable in the same claim.
After recovery, increases remain at no extra
charge to age 65.
Future
Insurability
Coverage†
Future Increase Option Rider—$2,000/mo.
Increases may be applied for annually to age 55
and are subject to financial eligibility.
Benefit Purchase Rider
Submission of financial documentation required
every three years until age 55; an offer to increase
coverage will be made when eligible.
Extended
Benefits Not Included Not Available with Provider Plus Limited
* Not necessarily protection against increases in the cost of living. †Restrictions and limitations apply. Applications for additional coverage will be financially underwritten based on your then current income and all disability insurance then in force, applied for, or for which you are eligible to receive. Employment and occupational information also required for applications under the Benefit Purchase Rider.
This proposal is not a contract. It is based on personal data you have provided and describes major features of a standard Policy Form 1400 (2011)
4016192686
Why Do You Need Disability Insurance?
Your ability to earn an income is your most valuable asset and the foundation of
any financial strategy. We know you work hard to support your lifestyle. Your
income pays your expenses of daily living and enables you to build wealth for
the future you desire.
But what if illness or injury made it impossible for you to work?
• How long would your savings last?
• Would your spouse’s or partner's income be sufficient to make up the
shortfall?
• What lifestyle changes would you or your family need to make?
• What about your dreams for the future—college for your children, travel, a
comfortable retirement?
• What would happen to your credit rating?
Are There Alternatives?
It’s important to think through each possible “Plan B.” However, are any of
these really viable alternatives?
•
Personal Assets Most financial advisors recommend counting on cash reserves only for the first few months. A long-term disability can rapidly erode assets.•
Social Security Given the stringent requirements to qualify for benefits, fewer than 30% of claims are approved at the initial level. After all appeals, only about half of claims are ultimately approved. (Source: Social Security Administration, 2006)•
Workers Compensation Benefits generally cover employees for job-related accidents and illness, not those suffered outside of the workplace.•
State Temporary Disability NY, NJ, CA, HI and RI provide a minimal level of short- term coverage for employees. Other states offer no such coverage.•
Group LTD Employer and association long-term disability plans are highly variable, but rarely offer benefits like a guaranteed premium or cost of living adjustment. Benefits under employer plans are generally offset by Social Security and other government programs. Review your coverage carefully.What Causes Most Disabilities?
Accidents aren’t the only cause of disability. In fact, the majority of all claims are due to illness.
Major Disablers % of New Claims Musculoskeletal/
connective tissue... Cancer... Cardiovascular... Maternity-related... Injuries/accidents... Mental/psychiatric disorder... Neurological...
27.5%. 14.6% 9.1%5.1% 10.3% 9.1%6.9%
Source: 2011 Long-Term Disability Claims Review, Council for Disability Awareness. For more information go to www.disabilitycanhappen.org.
Proposed Coverage
If totally disabled and eligible for benefits, you will receive:
Total Monthly Benefit
$1,000
Total Annual Benefit$12,000
Potential Cumulative Benefit*$722,545
Benefits will become payable 90 days after you become totally disabled.
Benefits continue while you remain totally disabled until Age 65 .
*Potential Cumulative Benefit includes 3% Compound Cost of Living Adjustment Rider. It assumes disability begins at your current age and continues until age 65. It is based on the monthly benefit illustrated above.
Level Premium – ProVider Plus
Monthly/
GOM** Quarterly AnnualSemi Annual
Base Policy $1,000/mo.
$17.01 $53.61 $105.11 $204.10True Own-Occupation
Optional Benefits
Future Increase Option $2,000/mo. $4.00 $12.61 $24.72 $48.00
Residual Disability Benefit Rider $2.50 $7.88 $15.45 $30.00
Cost of Living Adj. 3% $2.95 $9.30 $18.23 $35.40
Student Loan Protection Rider $2,000/mo. $11.17 $35.20 $69.01 $134.00
Automatic Benefit Enhancement Rider $0.00 $0.00 $0.00 $0.00
Total Premium*
$37.62 $118.59 $232.52 $451.50*The total premium includes an annual policy fee of $30.
**Refers to Guard-O-Matic--our automatic premium payment option. There is no service fee when your premium is automatically deducted each month from a checking or savings account.
The ProVider Plus policy is
non-cancellable and
guaranteed renewable to age
65. It provides true "own
occupation" protection.
Next Steps
Complete an Application Our underwriters need a complete and accurate picture of your health and financial status.
Fulfill Underwriting Requirements Depending on coverage applied for, these may include:
• Financial documentation such as tax returns and financial statements.
• Private phone interview with one of our representatives to verify medical and financial information.
• Paramedical exam.
• Physician statements and medical records.
Delivery and review of the above requirements typically take several weeks.
Student Loan Protection Rider
If you’re like most graduates, your student loans may be sizeable. Recent studies show
that significant student loan debt can impact future plans and life’s decisions such as:
• Employment– Can you afford to buy a business or will you work in a corporate
environment?
• Family– Will marriage or starting a family need to be delayed?
• Home ownership– Can you afford a new home and make your student loan
payments?
Protection for When You’re Most Vulnerable…
The Student Loan Protection Rider can help provide peace of mind to those
who are early in their professional careers. While your income may be on the
rise, it could be several years before your yearly earnings exceed your loan
balance – a time when many professionals feel particularly vulnerable to a
disability that could force them out of work or practice.
Student Loan Protection is specifically designed to protect you during this time
by providing an added layer of disability insurance, above and beyond what
you might purchase to protect your income.
1 Please consult your legal or financial advisor if you have questions concerning the circumstances under which a federal student loan may be discharged for disabilities or other reasons.
Rider Term:
15 Years
Maximum Reimbursement:
$2,000 per month
Total Student Loan
Protection Available:
$354,000
Do my Loans Already Have
Disability Protection
1?
Under current federal law
federal student loans may be
discharged for Total and
Permanent Disabilities – those
that require you to be unable to
engage in any substantial
gainful activity and that are
expected to last at least 5 years
and result in death. Private
loans may or may not include
similar features.
You could still be at risk as a
professional's income is
susceptible to many accidents
and illnesses that won’t qualify
for this discharge.
The Student Loan Protection
rider protects you in your own
occupation.
Automatic Benefit Enhancement (ABE) Rider
ABE is a no-cost rider that can help keep your disability insurance benefit
aligned with normal, annual income increases you might experience when
healthy. It provides an annual 4% benefit increase each year for up to six years,
with no proof of income required. Each automatic increase will include an
additional premium based on your then-current age.
Potential Automatic Increases and Premiums*
Each increase will grow your disability insurance benefit and will include an
additional premium based on your then-current age as follows:
Age
Total Monthly
Benefit
without
Automatic
Increase
Total Monthly
Benefit with
Automatic
Increase**
Annual
Automatic
Increase
Premium
Total
Annual
Premium with
Automatic
Increase
30 $1,000 $1,000 $0 $452
31 $1,000 $1,040 $10 $462
32 $1,000 $1,090 $13 $475
33 $1,000 $1,140 $14 $488
34 $1,000 $1,190 $14 $503
35 $1,000 $1,240 $15 $518
36 $1,000 $1,290 $16 $533
* Assumes the policy issued is identical to this illustration, includes the Automatic Benefit Enhancement (ABE) Rider and all available ABE increases are accepted when offered. Any differences between this illustration and any policy issued may impact both the availability of this rider and the potential increases resulting from the inclusion of this rider as well as premiums.
** The Automatic Increase does not increase the Social Insurance Substitute Indemnity.
Renewability
You may apply to renew the ABE rider on each six year review date. You must provide evidence of your medical insurability, income, occupation, employment and other insurance in force, applied for, or for which you are eligible. Your eligibility will be based on our underwriting rules in effect at the time of renewal. You will not be eligible to renew the ABE rider if you have been paid benefits under the same policy. Increases are available to a maximum of age 60 or until your monthly benefit equals the maximum allowed at that time.
Coverage and Monthly Premium Alternatives
Elimination Period
Benefit Period 60 Days 90 Days
To Age 67 $58.57 $40.02
Base Policy $28.92 $18.40
Future Inc Option $7.48 $4.40
Residual $5.33 $2.74
COLA 3% $5.68 $3.32
SLP $11.17 $11.17
ABE Rider $0.00 $0.00
To Age 65 $54.48 $37.62
Base Policy $26.61 $17.01
Future Inc Option $6.80 $4.00
Residual $4.86 $2.50
COLA 3% $5.05 $2.95
SLP $11.17 $11.17
ABE Rider $0.00 $0.00
It is possible to adjust the
monthly premium you pay by
making changes to the quoted
benefit and elimination
periods. Your proposed
coverage is highlighted at the
left.
Coverage Variables
Elimination Period The number of days following disability before benefits become payable. Your choice of elimination period should be integrated with your short-term employer benefits and existing savings.
Benefit Period The maximum time for which you can receive benefit payments for disability. A shorter benefit period means a lower premium, but may not provide sufficient coverage for an extended disability.
Level and Graded Premiums Depending on your current situation, you can choose to pay a level fixed premium for the life of your policy, or choose a lower initial premium that increases annually (graded).
Graded and Level Premium Comparison
Age Year Annual Premium Graded Annual Premium Level 1
Annual Premium Difference
Cumulative Premium
Difference Attained Age Level Premium2
30 1 325 452 -126 -126 -
31 2 333 452 -118 -245 464
32 3 341 452 -110 -355 478
33 4 348 452 -103 -458 493
34 5 355 452 -96 -555 507
35 6 364 452 -87 -642 523
36 7 375 452 -76 -718 536
37 8 387 452 -65 -783 550
38 9 398 452 -54 -836 565
39 10 411 452 -41 -877 579
40 11 426 452 -26 -903 595
41 12 442 452 -10 -912 616
42 13 459 452 7 -905 639
43 14 477 452 26 -879 663
44 15 500 452 48 -831 688
45 16 388 318 71 -760 580
46 17 409 318 91 -669 598
47 18 430 318 113 -556 616
48 19 452 318 135 -421 636
49 20 477 318 159 -262 655
50 21 500 318 182 -80 676
51 22 521 318 204 123 -
52 23 557 318 239 362 -
53 24 608 318 290 653 -
54 25 677 318 359 1,012 -
55 26 625 270 356 1,367 -
56 27 675 270 406 1,773 -
57 28 721 270 451 2,224 -
58 29 762 270 493 2,717 -
59 30 785 270 516 3,233 -
60 - 64 31 - 35 799 270 529 5,878 -
1. The level annual premium above is based on your age shown at the top-right of this proposal.
2. Clients who opt for a graded premium option may convert to a level premium on any policy anniversary through age 50. The Attained Age Level Premium represents the annual policy premium and is determined by your then current age at the time you convert. Should you change your coverage after a policy is issued, you should request a new proposal as your premium will likely vary from the amounts shown.
Policy Benefits
Non-Cancellable and Guaranteed Renewable We cannot cancel your policy, increase
your premiums or change policy provisions if you keep paying premiums due, until you
reach age 65. After that you can renew your policy at rates then in effect as long as you
continue to be gainfully employed full time for at least 10 months each year.
Total Disability You will be considered totally disabled if, solely due to injury or
sickness, you are not able to perform the material and substantial duties of your
occupation, even if you are gainfully employed in another occupation.
Your occupation means the occupation(s) in which you are gainfully employed during
the 12 months prior to the time you became disabled.
Waiver of Premium We will waive any premiums that are due while you are disabled
and receiving benefits, and for 6 months after you recover. We will also refund any
portion of premium you have paid that applies to the period after you first became
disabled.
Occupational Rehabilitation, Modification and Access Benefits The insured may be
eligible for an occupational rehabilitation benefit that is part of a mutually agreed-upon
formal plan, as well as reimbursement for the cost of workplace modifications that will
help you return to gainful employment.
Elimination Period The elimination period is the number of days that must elapse
before benefits become payable. You may be disabled from the same or a different cause
for this entire period. Days of disability need not be consecutive, but must occur within
an accumulation period of 210 days.
Waiver of Elimination Period We will waive the elimination period if you become
totally disabled within five years after the end of a previous disability that lasted more
than 6 months and for which we paid benefits.
Benefit Period This is the longest period of time for which we will pay benefits for a
continuous disability from the same cause.
Recurrent Disability If, after a disability for which we paid benefits, you return to full-
time gainful employment but become disabled again within 12 months, the later period
of disability will be considered a continuation of the previous one. The later period of
disability must result from the same cause or causes as the previous disability. Benefits
will resume with no new elimination period required.
Presumptive Disability We will consider you totally disabled—even if you are
gainfully employed—if you suffer total and complete loss of the sight in both eyes;
hearing in both ears; speech; or the use of both hands, both feet, or one hand and one
foot, in their entirety. Your loss does not have to be irrecoverable.
Capital Sum Benefit An additional lump sum benefit is payable for specified losses:
total loss of sight in one eye, or loss of a hand or foot. This benefit equals 12 times your
monthly indemnity.
For a complete description of policy benefits and features, ask your representative for a
sample policy.
Important Things To Know
Exclusions We will not pay benefits during any period of time in which you are incarcerated, or for any disability caused by, contributed to or resulting from:
• Military training, action, conflict or war while you are serving in the military or an auxiliary unit or working for contracted military services.
• Commission of, or attempt to commit, a criminal offense.
• Being engaged in an illegal occupation.
• Suspension, revocation or surrender of your professional or occupational license or
certification.
• An intentionally self-inflicted injury.
• Normal pregnancy or childbirth, during the first three months of disability or the elimination period, if longer.
We will not pay benefits for any disability due to any loss we have excluded by name or specific description in your policy.
Pre-Existing Conditions For the first two years of coverage, we do not cover disabilities caused by a pre- existing condition that:
• Was misrepresented or not disclosed on your application; and
• For which you received professional medical advice, diagnosis or treatment within two years before coverage began; or caused symptoms within one year before coverage began for which a prudent person would usually seek medical advice, diagnosis or treatment.
Benefits While Outside the United States or Canada You must be living in the U.S. or Canada in order to receive benefits (except for incidental travel or vacations).
Optional Benefits
Your proposed policy includes the following riders:
Residual Disability Benefit Rider
ProVider
Plus DI Policy Typical Group LTD
At least a 15% income loss
No specific loss of time
or duties requirement
Loss of income benefit
for first 12 months
Recovery benefit for up to
the entire benefit period
Not all disabilities are “total”. You may suffer a partial (or residual) disability
that limits your ability to work and results in decreased income – or an initial
total disability may be followed by an extended period of residual disability.
Under this important optional rider, you are considered residually disabled if
solely because of sickness or injury, your loss of income is at least 15% of your
prior income, and you are gainfully employed. No specific loss of time or duties
is required.
For each of the first 12 months that you are eligible for a residual disability
benefit, we will pay a benefit equal to your loss of income (up to the policy’s
monthly indemnity) less any individual disability insurance benefits you are
receiving or are eligible to receive from all disability policies in force before the
effective date of the Residual Disability Benefit Rider. After that, the residual
benefit is proportionate to your loss of income; we will consider a loss of
income of more than 75% to be 100%. Even after you fully recover and return
to gainful employment, we will continue residual benefits up to the end of the
benefit period, as long as your loss of income is at least 15% of your prior
income and solely the result of the injury or sickness that caused the disability.
About the Automatic Benefit
Enhancement Rider (ABE)
ABE is a unique feature that provides automatic 4% compound increases to your policy’s monthly indemnity. Increases occur each year for up to six years despite any change in health, income or occupation. You do not apply for the ABE rider; rather, your eligibility will be determined by us at the time of underwriting. There is no additional initial premium for this rider; each annual benefit increase will include a corresponding attained age premium increase, if you accept. Should you decline two consecutive increases, no future offers will be made and the rider will terminate.
Are You A Business Owner?
You should consider the following types of business coverage: Overhead Expense Reimburses monthly expenses like utilities, rent and staff salaries to keep your business running if you are disabled. Business Reducing Term Covers fixed financial obligations such as business loans, purchase
agreements and salary guarantees. Disability Buy-Out Provides the funding for the disability provision of your firm’s buy-sell agreement.
3% Compound Cost of Living Adjustment Rider **While receiving
disability benefit payments, we will adjust your monthly indemnity each year to
help keep pace with inflation (3% compounded annually). Prior to policy
expiration, if you are no longer disabled, prior increases to the monthly
indemnity (if at least $200) will remain on the policy with no extra premium
charge until age 65.
Monthly benefit increases with COLA
(For Illustrative Purposes)* Assumes you are eligible for benefits under the policy with payments beginning 30 days following the elimination period, with the monthly benefit adjusted annually at a compounded rate of 3%. This benefit is not necessarily protection against increases in the cost of living.
**You have selected the 3% Compound Cost of Living Adjustment Rider. The potential cumulative benefit of
$722,545 would be $417,000 if this rider were not selected.
Future Increase Option Rider Obtaining coverage to protect a growing income
often requires being medically underwritten for a new policy. With the Future
Increase Option rider, you can apply for additional coverage each year until age
55 without additional medical underwriting. Financial eligibility is generally
determined by your income, employment, and all other disability insurance that
you own, have applied for, or for which you are eligible with all insurers. A
special option date is available if you lose your employer-provided group long
term disability coverage. Restrictions and limitations apply. For additional
details, ask your representative for a sample policy.
Student Loan Protection Rider See rider text with the ProVider Plus proposal
(it is a separate page).
4016192686
Why Do You Need Disability Insurance?
Your ability to earn an income is your most valuable asset and the foundation of
any financial strategy. We know you work hard to support your lifestyle. Your
income pays your expenses of daily living and enables you to build wealth for
the future you desire.
But what if illness or injury made it impossible for you to work?
• How long would your savings last?
• Would your spouse’s or partner's income be sufficient to make up the
shortfall?
• What lifestyle changes would you or your family need to make?
• What about your dreams for the future—college for your children, travel, a
comfortable retirement?
• What would happen to your credit rating?
Are There Alternatives?
It’s important to think through each possible “Plan B.” However, are any of
these really viable alternatives?
•
Personal Assets Most financial advisors recommend counting on cash reserves only for the first few months. A long-term disability can rapidly erode assets.•
Social Security Given the stringent requirements to qualify for benefits, fewer than 30% of claims are approved at the initial level. After all appeals, only about half of claims are ultimately approved. (Source: Social Security Administration, 2006)•
Workers Compensation Benefits generally cover employees for job-related accidents and illness, not those suffered outside of the workplace.•
State Temporary Disability NY, NJ, CA, HI and RI provide a minimal level of short- term coverage for employees. Other states offer no such coverage.•
Group LTD Employer and association long-term disability plans are highly variable, but rarely offer benefits like a guaranteed premium or cost of living adjustment. Benefits under employer plans are generally offset by Social Security and other government programs. Review your coverage carefully.What Causes Most Disabilities?
Accidents aren’t the only cause of disability. In fact, the majority of all claims are due to illness.
Major Disablers % of New Claims Musculoskeletal/
connective tissue... Cancer... Cardiovascular... Maternity-related... Injuries/accidents... Mental/psychiatric disorder... Neurological...
27.5%. 14.6% 9.1%5.1% 10.3% 9.1%6.9%
Source: 2011 Long-Term Disability Claims Review, Council for Disability Awareness. For more information go to www.disabilitycanhappen.org.
Proposed Coverage
If totally disabled and eligible for benefits, you will receive:
Total Monthly Benefit
$1,000
Total Annual Benefit$12,000
Potential Cumulative Benefit*$722,545
Benefits will become payable 90 days after you become totally disabled.
Benefits continue while you remain totally disabled until age 65
1.
* Potential Cumulative Benefit includes 3% Maximum Cost of Living Adjustment Rider. It assumes disability begins at your current age and continues until age 65. It is based on the monthly benefit illustrated above.
Level Premium – ProVider Plus Limited
Monthly/
GOM** Quarterly AnnualSemi Annual
Base Policy $1,000/mo.
$17.01 $53.61 $105.11 $204.10True Own-Occupation
Optional Benefits
Basic Residual Disability Benefit Rider $2.15 $6.78 $13.29 $25.80
Cost of Living Adj. 3% $2.09 $6.59 $12.93 $25.10
Student Loan Protection Rider $2,000/mo. $11.17 $35.20 $69.01 $134.00
Benefit Purchase Rider $0.00 $0.00 $0.00 $0.00
Automatic Benefit Enhancement Rider $0.00 $0.00 $0.00 $0.00
Total Premium*
$32.42 $102.17 $200.34 $389.00Discounts Applied
Mental and/or Substance - Related Disorders
Limitation Discount 10% $-3.24 $-10.22 $-20.03 $-38.90
Total Discounted Premium
$29.17 $91.95 $180.30 $350.10*The total premium includes an annual policy fee of $30.
**Refers to Guard-O-Matic--our automatic premium payment option. There is no service fee when your premium is automatically deducted each month from a checking or savings account.
The ProVider Plus policy is
non-cancellable and
guaranteed renewable to age
65. It provides true "own
occupation" protection.
1
Mental and/or Substance-
Related Disorders
Limitation For mental and/or
substance related disorders,
the policy, which includes
any riders, only provides up
to twenty four months of
benefits during your lifetime,
unless you remain
continuously confined in a
hospital for treatment.
Next Steps
Complete an Application Our underwriters need a complete and accurate picture of your health and financial status.
Fulfill Underwriting Requirements Depending on coverage applied for, these may include:
• Financial documentation such as tax returns and financial statements.
• Private phone interview with one of our representatives to verify medical and financial information.
• Paramedical exam.
• Physician statements and medical records.
Delivery and review of the above requirements typically take several weeks.
Student Loan Protection Rider
If you’re like most graduates, your student loans may be sizeable. Recent studies show
that significant student loan debt can impact future plans and life’s decisions such as:
• Employment– Can you afford to buy a business or will you work in a corporate
environment?
• Family– Will marriage or starting a family need to be delayed?
• Home ownership– Can you afford a new home and make your student loan
payments?
Protection for When You’re Most Vulnerable…
The Student Loan Protection Rider can help provide peace of mind to those
who are early in their professional careers. While your income may be on the
rise, it could be several years before your yearly earnings exceed your loan
balance – a time when many professionals feel particularly vulnerable to a
disability that could force them out of work or practice.
Student Loan Protection is specifically designed to protect you during this time
by providing an added layer of disability insurance, above and beyond what
you might purchase to protect your income.
1 Please consult your legal or financial advisor if you have questions concerning the circumstances under which a federal student loan may be discharged for disabilities or other reasons.
Rider Term:
15 Years
Maximum Reimbursement:
$2,000 per month
Total Student Loan
Protection Available:
$354,000
Do my Loans Already Have
Disability Protection
1?
Under current federal law
federal student loans may be
discharged for Total and
Permanent Disabilities – those
that require you to be unable to
engage in any substantial
gainful activity and that are
expected to last at least 5 years
and result in death. Private
loans may or may not include
similar features.
You could still be at risk as a
professional's income is
susceptible to many accidents
and illnesses that won’t qualify
for this discharge.
The Student Loan Protection
rider protects you in your own
occupation.
Automatic Benefit Enhancement (ABE) Rider
ABE is a no-cost rider that can help keep your disability insurance benefit
aligned with normal, annual income increases you might experience when
healthy. It provides an annual 4% benefit increase each year for up to six years,
with no proof of income required. Each automatic increase will include an
additional premium based on your then-current age.
Potential Automatic Increases and Premiums*
Each increase will grow your disability insurance benefit and will include an
additional premium based on your then-current age as follows:
Age
Total Monthly
Benefit
without
Automatic
Increase
Total Monthly
Benefit with
Automatic
Increase**
Annual
Automatic
Increase
Premium
Total
Annual
Premium with
Automatic
Increase
30 $1,000 $1,000 $0 $350
31 $1,000 $1,040 $8 $359
32 $1,000 $1,090 $11 $370
33 $1,000 $1,140 $12 $381
34 $1,000 $1,190 $12 $393
35 $1,000 $1,240 $13 $406
36 $1,000 $1,290 $13 $419
* Assumes the policy issued is identical to this illustration, includes the Automatic Benefit Enhancement (ABE) Rider and all available ABE increases are accepted when offered. Any differences between this illustration and any policy issued may impact both the availability of this rider and the potential increases resulting from the inclusion of this rider as well as premiums.
Renewability
You may apply to renew the ABE rider on each six year review date. You must provide evidence of your medical insurability, income, occupation, employment and other insurance in force, applied for, or for which you are eligible. Your eligibility will be based on our underwriting rules in effect at the time of renewal. You will not be eligible to renew the ABE rider if you have been paid benefits under the same policy. Increases are available to a maximum of age 60 or until your monthly benefit equals the maximum allowed at that time.
Coverage and Monthly Premium Alternatives
Elimination Period
Benefit Period 90 Days
To Age 67 $30.85
Base Policy $18.40
Basic Residual $2.36
COLA 3% $2.36
SLP $11.17
Benefit PR $0.00
ABE Rider $0.00
Total Discount $-3.43
To Age 65 $29.17
Base Policy $17.01
Basic Residual $2.15
COLA 3% $2.09
SLP $11.17
Benefit PR $0.00
ABE Rider $0.00
Total Discount $-3.24
It is possible to adjust the
monthly premium you pay by
making changes to the quoted
benefit and elimination
periods. Your proposed
coverage is highlighted at the
left.
Coverage Variables
Elimination Period The number of days following disability before benefits become payable. Your choice of elimination period should be integrated with your short-term employer benefits and existing savings.
Benefit Period The maximum time for which you can receive benefit payments for disability. A shorter benefit period means a lower premium, but may not provide sufficient coverage for an extended disability.
Level and Graded Premiums Depending on your current situation, you can choose to pay a level fixed premium for the life of your policy, or choose a lower initial premium that increases annually (graded).
Graded and Level Premium Comparison
Age Year Annual Premium Graded Annual Premium Level 1
Annual Premium Difference
Cumulative Premium
Difference Attained Age Level Premium2
30 1 260 350 -90 -90 -
31 2 266 350 -84 -173 360
32 3 272 350 -78 -252 369
33 4 277 350 -73 -325 380
34 5 282 350 -68 -393 390
35 6 289 350 -62 -454 402
36 7 296 350 -54 -508 411
37 8 304 350 -46 -554 421
38 9 312 350 -38 -592 431
39 10 322 350 -29 -620 441
40 11 332 350 -18 -639 452
41 12 344 350 -7 -645 467
42 13 356 350 5 -640 483
43 14 369 350 19 -621 500
44 15 384 350 34 -587 517
45 16 280 230 50 -537 415
46 17 294 230 65 -472 428
47 18 310 230 80 -392 441
48 19 326 230 96 -296 455
49 20 343 230 114 -182 470
50 21 360 230 131 -51 485
51 22 375 230 146 95 -
52 23 401 230 171 266 -
53 24 437 230 208 474 -
54 25 487 230 257 731 -
55 26 535 230 305 1,036 -
56 27 579 230 349 1,385 -
57 28 619 230 389 1,775 -
58 29 656 230 426 2,201 -
59 30 676 230 447 2,648 -
60 - 64 31 - 35 689 230 459 4,944 -
1. The level annual premium above is based on your age shown at the top-right of this proposal.
2. Clients who opt for a graded premium option may convert to a level premium on any policy anniversary through age 50. The Attained Age Level Premium represents the annual policy premium and is determined by your then current age at the time you convert. Should you change your coverage after a policy is issued, you should request a new proposal as your premium will likely vary from the amounts shown.
Policy Benefits
Non-Cancellable and Guaranteed Renewable We cannot cancel your policy, increase
your premiums or change policy provisions if you keep paying premiums due, until you
reach age 65. After that you can renew your policy at rates then in effect as long as you
continue to be gainfully employed full time for at least 10 months each year.
Total Disability You will be considered totally disabled if, solely due to injury or
sickness, you are not able to perform the material and substantial duties of your
occupation, even if you are gainfully employed in another occupation.
Your occupation means the occupation(s) in which you are gainfully employed during
the 12 months prior to the time you became disabled.
Waiver of Premium We will waive any premiums that are due while you are disabled
and receiving benefits, and for 6 months after you recover. We will also refund any
portion of premium you have paid that applies to the period after you first became
disabled.
Occupational Rehabilitation, Modification and Access Benefits The insured may be
eligible for an occupational rehabilitation benefit that is part of a mutually agreed-upon
formal plan, as well as reimbursement for the cost of workplace modifications that will
help you return to gainful employment.
Elimination Period The elimination period is the number of days that must elapse
before benefits become payable. You may be disabled from the same or a different cause
for this entire period. Days of disability need not be consecutive, but must occur within
an accumulation period of 210 days.
Waiver of Elimination Period We will waive the elimination period if you become
totally disabled within five years after the end of a previous disability that lasted more
than 6 months and for which we paid benefits.
Benefit Period This is the longest period of time for which we will pay benefits for a
continuous disability from the same cause.
Recurrent Disability If, after a disability for which we paid benefits, you return to full-
time gainful employment but become disabled again within 12 months, the later period
of disability will be considered a continuation of the previous one. The later period of
disability must result from the same cause or causes as the previous disability. Benefits
will resume with no new elimination period required.
Presumptive Disability We will consider you totally disabled—even if you are
gainfully employed—if you suffer total and complete loss of the sight in both eyes;
hearing in both ears; speech; or the use of both hands, both feet, or one hand and one
foot, in their entirety. Your loss does not have to be irrecoverable.
Capital Sum Benefit An additional lump sum benefit is payable for specified losses:
total loss of sight in one eye, or loss of a hand or foot. This benefit equals 12 times your
monthly indemnity.
For a complete description of policy benefits and features, ask your representative for a
sample policy.
Important Things To Know
Exclusions We will not pay benefits during any period of time in which you are incarcerated, or for any disability caused by, contributed to or resulting from:
• Military training, action, conflict or war while you are serving in the military or working for contracted military services.
• Commission of, or attempt to commit, a criminal offense.
• Being engaged in an illegal occupation.
• Suspension, revocation or surrender of your professional or occupational license or
certification.
• An intentionally self-inflicted injury.
• Normal pregnancy or childbirth, during the first three months of disability or the elimination period, if longer.
We will not pay benefits for any disability due to any loss we have excluded by name or specific description in your policy.
Pre-Existing Conditions For the first two years of coverage, we do not cover disabilities caused by a pre- existing condition that:
• Was misrepresented or not disclosed on your application; and
• For which you received professional medical advice, diagnosis or treatment within two years before coverage began; or caused symptoms within one year before coverage began for which a prudent person would usually seek medical advice, diagnosis or treatment.
Benefits While Outside the United States or Canada You must be living in the U.S. or Canada in order to receive benefits (except for incidental travel or vacations).
Optional Benefits
Your proposed policy includes the following riders:
Basic Residual Disability Benefit Rider Not all disabilities are “total”. You
may suffer a partial (or residual) disability that limits your ability to work and
results in decreased income—or an initial total disability may be followed by an
extended period of residual disability. Under this important optional rider, you
will be eligible for a residual disability benefit when you are gainfully
employed, but solely due to injury or sickness you experience a loss of income
of at least 20% of your prior income and either
• you are unable to perform one or more of the material and substantial duties
of your occupation; or,
• you are able to perform all of the material and substantial duties of your
occupation but not for the length of time they normally require.
The residual disability benefit is proportionate to your loss of income. During
the first 6 months in which residual indemnity is payable, we will consider your
loss of income to be 50% of your prior income or the actual percentage of loss,
if greater. We will consider a loss of income of more than 75% to be 100% at
any time while residual disability benefits are payable. A recovery benefit is
payable if you are no longer disabled and you return to full time gainful
employment immediately following a disability for which we paid benefits, yet
you continue to suffer at least a 20% loss of income due to the injury or
sickness that caused the disability.
3% Maximum Cost of Living Adjustment Rider **While you are receiving
disability benefit payments, we will adjust your monthly indemnity each year to
help keep pace with inflation. Adjustments are based upon changes in the
Consumer Price Index (CPI-U), with a maximum 3% annual rate cap. When
you recover, increases to the monthly indemnity (if at least $200) will remain
on the policy with no extra premium charge until age 65.
Monthly benefit increases with COLA
(For Illustrative Purposes)* Assumes you are eligible for benefits under the policy with payments beginning 30 days following the elimination period, with the monthly benefit adjusted annually at a maximum compounded rate of 3%. This 3% rate is for illustrative purposes only; actual rates will vary according to the CPI-U as stated above. This benefit is not necessarily protection against increases in the cost of living.
**You have selected the 3% Maximum Cost of Living Adjustment Rider. The potential cumulative benefit of
$722,545 would be $417,000 if this rider were not selected.
About the Automatic Benefit
Enhancement Rider (ABE)
ABE is a unique feature that provides automatic 4% compound increases to your policy’s monthly indemnity. Increases occur each year for up to six years despite any change in health, income or occupation. You do not apply for the ABE rider; rather, your eligibility will be determined by us at the time of underwriting. There is no additional initial premium for this rider; each annual benefit increase will include a corresponding attained age premium increase, if you accept. Should you decline two consecutive increases, no future offers will be made and the rider will terminate.
Are You A Business Owner?
You should consider the following types of business coverage: Overhead Expense Reimburses monthly expenses like utilities, rent and staff salaries to keep your business running if you are disabled. Business Reducing Term Covers fixed financial obligations such as business loans, purchase
agreements and salary guarantees. Disability Buy-Out Provides the funding for the disability provision of your firm’s buy-sell agreement.
