Fast Facts

This program is designed to provide income replacement benefits to a group of insured individuals working in professional and executive occupations. A major feature of this program is the availability of Guaranteed Issue, for select groups. This program is not available to medical occupations. The differences between policies issued under the Guaranteed Issue program and those that are fully underwritten are summarized below.

Definition of Guaranteed Issue

Guaranteed Issue means that each person in an approved group will be issued a policy at standard, discounted unisex rates. No one in the approved group may be declined, rated, have a policy issued with a rider that excludes coverage for a specific medical condition or have coverage modified. An offer of Guaranteed Issue must be approved by underwriting before it is presented to an employer.

Win-Win-Win Combination

Employer wins by providing a selective benefit for key executives, while stabilizing the overall cost of providing income protection benefits due to the level-premium structure of individual DI.
Employee wins by obtaining the appropriate level of disability income coverage based on income and current group long-term disability plan.
Agent wins by making one sale to an owner or benefit manager that results in multiple insured lives and significant compensation.

Plan Specifications

There must be at least 20 participants.
Individual selection of benefits is not allowed. Plan design will be done at the group level.
Plan requires 100% participation and 100% employer-paid.
Plan requires a list bill.
All insureds must be occupational classes 5AP-3AP. Up to 15% of the eligible group may be 3AP.
Step-Rates are not available.
The following riders are applicable for Guaranteed Issue cases:
   - Long-term residual/short-term residual/partial
   - SIS
   - Inflation
   - ADL
   - No mental/Nervous Disorder and Substance Abuse Limitation except FL, MN, PA and TX
Discounts range from 15 to 30% off unisex rates, depending on the case size
Guaranteed Issue Maximum Issue & Participation Limits vary, based on the characteristics of the group, but can be as high as $8,000

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Underwriting

Medical Underwriting

For an employer-sponsored plan that has been approved by the multi-life underwriter for Guaranteed Issue, medical underwriting is not required unless the applicant is applying for DI coverage above the guaranteed issue amount. In that case, a new, under- written application is required and usual medical requirements are needed. These requirements are based on the additional amount, above the guaranteed issue amount only.

Financial Underwriting

Employer-Sponsored plans that are approved for Guaranteed Issue require a census that includes income for each eligible employee. The census must be signed by a qualified office of the employer. Once the case has been accepted by the multi-life underwriter, census income information will be accepted as income documentation and additional income documentation will not be needed. This applies to amounts applied for up to the guaranteed issue amount. If the applicant applies for more than the guaranteed issue amount, normal underwriting procedures apply.

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Maximum Issue and Participation Limits

Guaranteed Issue Maximum Issue and Participation Limits

Number of Lives	Maximum GI Issue Amount
20-99	$100/life/mo. to a maximum of $6,000
100 +	$8,000
The maximum amount available can vary based on the characteristics of the group.

Guaranteed Issue Discount

These discounts cannot be combined with any other discounts.

Lives	Discounts
Under 20	N/A
20-49	20%
50-99	25%
100 +	30%
First Year Compensation Reduction applies.

Guaranteed Issue Commission and Bonus Schedule

Lives	NonCan FYC	GR (ages 61-64) FYC	Year 2-10 Renewal	Bonus Year 2-10 Renewal
20-49	40%	30%	10%	up to 5%*
50-99	35%	25%	10%	up to 5%*
100 +	30%	20%	10%	up to 5%*

The qualifying period for this bonus is a calendar year. To qualify, the agent's persistency must be at least 85% and the total GI in-force premium must be at least $25,000 at the end of the year. The payment period for this bonus will run from March of a given year through February of the following year. The Guaranteed Issue Bonus is paid as a percent of renewal premiums paid during this payment period as shown below:

* varies for each renewal year, depending upon GI in force premium and persistency:
- in force premium $25,000 - $99,000 and persistency of at least 85% - 2% bonus, payable policy years 2-10 - in force premium of $100,000+ and persistency of at least 85% - 5% bonus, payable policy years 2-10

This bonus is separate from any bonus on individually underwritten business.

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