New Preferred Occupations, Business Owner Grid and More

Effective May 2, your clients have new incentives to buy IDI coverage based on changes to our Fully Underwritten Platinum Advantage.

• Preferred Occupation Discount: Architects, Consultants and some Office Workers added
• Business Owner Grid: New qualifications could allow for occupation class increases
• Government Employees: New coverage limits, fewer restrictions

We updated The Standard’s eApp, IDI Product Guide, Illustration Software and related marketing materials to reflect these changes.  

We’ll also announce these program changes in the May 10 issue of the IDI Connect newsletter.

Continue reading for details and transition information about each change.

Additions to Preferred Occupation Discount

We’ve added Architects, Consultants and some Office Workers as 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
  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)

Make sure to reach out to your clients who may now qualify for the Preferred Occupation Discount. And review the online transition rules that apply to changes of eligible occupations.

Introducing the Business Owner Grid

Your business owner clients could get 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 minimum 2 years of ownership
• Perform manual duties less than 25% of the time

When your clients meet those conditions above, continue on to the Business Owner Grid below to determine if they qualify for an improved occupation class.

The Business Owner Grid is not available to financial advisors, financial planners or insurance producers, or those listed under financial services, entertainment industry or 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 with 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.

Be sure to review the transition rules for this reward.

Simplified Guidelines for Government Employees

We’ve expanded government employee eligibility by eliminating special government employee restrictions around maximum age, maximum issue limits and maximum years of service.

And some government employees may be eligible for limit increases. To determine the eligible monthly benefit, we will treat government retirement disability benefits as equivalent 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.

You can find our transition rules for government employee changes online.

If have any questions about the changes highlighted in this newsletter, contact your sales consultant.

For Producers Only