Take Advantage of Recent IDI Program Changes

May is here. And with it, we’ve put together a few fresh incentives for individual disability insurance that help you create solutions to fit your clients’ needs.

Dive into details below on:

• Additions to the Preferred Occupation Discount
• NEW! Business Owner Grid
• Changes for Government Employees

We’ve updated our online tools to reflect these changes, including The Standard’s eApp, IDI Product Guide, Illustration Software and other marketing materials.

Additions to Preferred Occupation Discount

Architects, Consultants and some Office Workers are now eligible for the Preferred Occupation Discount on Fully Underwritten Platinum Advantage Individual Disability Insurance policies.

The 5A occupations eligible for the Preferred Occupation Discount now include:

• Actuaries (Fellow or MAAA)
• Architects
• Attorneys (including judges with law degree)
• Consultants and Other Office Workers with no manual duties, earning at least $150,000 each of the last two years (not otherwise classified)
  The following occupations are excluded:
  • Sales
  • Computer science/IT
  • Insurance producers, financial advisors and financial planners
• CPAs
• Data Scientists (advanced data analytics) with master's degree or Ph.D.
• Engineers with professional engineering license issued by a state licensing board (e.g., civil, mechanical, etc.)
• Executives, in office, earning at least $75,000 per year each of the last two years
• Other managers of people, in office, earning at least $75,000 per year each of the last two years
  The following occupations are excluded:
  • Sales
  • Computer science/IT
  • Insurance producers, financial advisors and financial planners
• Ph.D. Economists
• Ph.D. Scientists (office and laboratory duties only)

See if any of your clients now qualify for the Preferred Occupation Discount. And review the online transition rules that apply.

New! Business Owner Grid

Your business owner clients could qualify for an improved occupation class if they meet the qualifications of our new Business Owner Grid.

To qualify, a business owner must first meet these conditions:

• Own at least 20% of the business
• Have a minimum two years of ownership
• Perform manual duties less than 25% of the time

If your client meets these conditions, continue to the Business Owner Grid below to figure out if they qualify for an improved occupation class.

The Business Owner Grid is not available to financial advisors, financial planners and insurance producers, and those listed under Financial Services, Entertainment Industry and Real Estate. The grid also excludes P, D and S occupations.

Continue using the normal occupation class listing in our IDI Product Guide if:

1.  Clients don’t meet the minimum eligibility to qualify for the grid

OR

2.  Their occupation class assigned in our manual is higher than what they’d qualify for based on the grid

We will use the higher of the two occupation classes available. The Illustration Software is updated to ensure the best occupation class available is selected.

For the Business Owner Grid, review these transition rules.

Simplified Guidelines for Government Employees

Our expanded government employee eligibility removes special government employee restrictions around maximum age, issue limits and years of service.

And some government employees may be eligible for benefit limit increases. To determine the eligible monthly benefit, we will treat government retirement disability benefits as equal to employer-paid group LTD plans. The new limits are:

• For federal employees, the benefit is calculated using employer-paid group LTD of 40% to a maximum of $15,000.
• For all other government employees, the benefit is calculated using employer-paid group LTD of 60% to a maximum of $15,000.

Find our transition rules for government employee changes online.

If you have questions about any changes highlighted in this newsletter, please contact your General Agent.

For Producers Only