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Innovative Disability Insurance Products for Business Protection

Discover a new standard of protection for business owners with unique features and flexible benefits. Enhance your coverage with overhead expense policies and supplemental benefits to ensure financial stability during disability. Get competitive premiums and generous compensation.

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Innovative Disability Insurance Products for Business Protection

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  1. Business ProVider Disability Insurance Products for BusinessOverhead Expense & Disability Buy-OutA New Standard for Business Protection Disability income products underwritten and issued by Berkshire Life Insurance Company of America, Pittsfield, MA, a wholly owned stock subsidiary of The Guardian Life Insurance Company of America, New York, NY. Product provisions and features may vary from state to state. FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC. 8566-1-2010 2010-0674

  2. You won’t find this combination anywhere else! • Unique product features to better meet the owner’s needs • Highly competitive premiums • Generous compensation & unparalleled renewals

  3. Business Owners Want: • Quicker benefit payments • More flexible use of benefits to meet business cash-flow needs • More affordable premiums with shorter elimination periods • An understanding of how future benefits will be determined

  4. Overhead Expense (Policy Form 4200) Flexible & Consumer-Friendly Protection

  5. New & Unique! Accelerated Benefit Endorsement • Gets money to the owner sooner • Accelerated Benefit Amount paid before requiring proof of covered expenses • Amount = ½ the maximum monthly benefit • No-cost endorsement

  6. New & Unique! Supplemental Overhead Expense Benefit Rider • Gives more protection from fluctuating expenses • An additional monthly benefit amount • Supplemental benefit = 1 times the maximum monthly benefit • Can be used for total or residual at any time during the benefit period & during any extension of benefits

  7. Supplemental Overhead Expense Benefit Rider • Example: $50,000 monthly benefit • Expenses spike in months 2 and 3 *Paid using the supplemental Overhead Expense Benefit Rider.

  8. New Feature! Professional Replacement Endorsement • Helps the owner pay a replacement • Considers 50% of a replacement’s salary ascovered expense • In addition to other covered overhead expenses • Up to the lesser of ½ the monthly maximum benefitor $10,000 • Highest limit in the industry! • Availability subject to underwriting discretion

  9. Professional Replacement EndorsementAt Application… • Overhead Expense Insurance Supplement • Enter Proposed Insured’s Monthly Earned Income • Up to the lesser of ½ the monthly maximum benefitor $10,000/mo.

  10. Professional Replacement EndorsementAt Time of Claim… • Flexibility to use the benefit as reimbursement for a replacement’s salary or other expenses

  11. Enhanced! Residual Disability Benefit • Now part of the base policy • Requires 15% loss of gross monthly revenue

  12. New Features! Return to Work Benefits • Occupational Rehabilitation • Modification & Access Benefit

  13. More Client-Friendly Features • Conversion to an individual DI policy • Up to age 55 • Up to $3,000 monthly indemnity • 90-day elimination period, 2-year benefit period • Subject to certain eligibility requirements • Legal and Accounting Fee benefit • Up to $5,000 for fees related to disability-related termination or sale of the business

  14. And Like ProVider Plus… • Future Increase Option • “pool” approach gives more flexibility • Total option amount = 1 times the policy’s monthly benefit • Special option date • Automatic Benefit Enhancement Rider • Additional Monthly Benefit Rider • Managerial Duties Endorsement

  15. And Like ProVider Plus… • Waiver of Premium • Waiver of Elimination Period • No service fee on Guard-O-Matic monthlypremium payments • Alignment of… • Risk classes • Age-last-birthday dating

  16. Maximum Monthly Issue Limits • Up to $50,000 • With Business Reducing Term*: up to $55,000 * Not available in FL, NC, SC, VA, MT.

  17. Pricing: Your Competitive Edge General Dentist - $10,000 per month *Monthly premiums shown are for a general dentist, generic rates, issue age 35, 30 day EP, 12 month BP, FIO rider. MassMutual, Principal and Standard premiums include an extra cost partial/residual disability rider. MassMutual and Union Central premiums include an extra cost salary replacement rider. Comparison is based on prevailing rates that were publicly available as of 10/09. If there are any questions about the rates, please contact a representative of that company. Refer to state-specific policy and rider forms for the full definition of all policy provisions, benefits, limitations and exclusions.

  18. Pricing: Your Competitive Edge Attorney - $10,000 per month *Monthly premiums shown are for an attorney, generic rates, issue age 35, 30 day EP, 12 month BP, FIO rider. MassMutual, Principal and Standard premiums include an extra cost partial/residual disability rider. MassMutual and Union Central premiums include an extra cost salary replacement rider. Comparison is based on prevailing rates that were publicly available as of 10/09. If there are any questions about the rates, please contact a representative of that company. Refer to state-specific policy and rider forms for the full definition of all policy provisions, benefits, limitations and exclusions.

  19. Disability Buy-Out (Policy Form 3200) Easier to Explain, Easier to Sell

  20. New & Unique! Business Valuation Formula • Included in the contract by endorsement • Eliminates “guesswork” • Defines how the insured’s business interest is valued… • at application • at time of claim Note: The value of the business is one of the factors that determine the amount of benefit payable. See the section of the policy titled Provisions Relating to Benefits for details.

  21. Business Valuation Endorsement Value of the insured’s ownership interest: • Professional/Personal Service • 1 X the business’ annual gross receipts X percentage of ownership interest • Commercial • 2 X the owner’s total compensation + owner’s share of business’ net worth

  22. New & Unique! Maximum Issue Limit • Single Limit: $2,000,000 • Regardless of… • Elimination period • Funding method • New maximum limit also available to medical anddental professionals

  23. New Features! Return to Work Benefits • Occupational Rehabilitation • Modification & Access Benefit

  24. Monthly Benefits & Recovery • “Recovery” benefit now in the policy • Monthly installment payments continue even if the insured is no longer totally disabled • Replaces the Presumptive Permanent DisabilityBenefit Rider

  25. More Client-Friendly Features • Transfer of Coverage provision • Conversion to an individual DI policy • Expanded installment funding options • 12, 24, 36, 48 and 60 months

  26. And Like ProVider Plus… • Additional Benefit Rider • Waiver of Premium • No service fee on Guard-O-Matic monthlypremium payments • Alignment of… • Risk classes • Age-last-birthday dating

  27. Pricing: Your Competitive Edge General Dentist - $1,000,000 Lump Sum Monthly premiums shown are for a general dentist, generic rates, best risk class, issue age 40, 360 day EP. Comparison is based on prevailing rates that were publicly available as of 10/09. If there are any questions about the rates, please contact a representative of that company. Refer to state-specific policy and rider forms for the full definition of all policy provisions, benefits, limitations and exclusions.

  28. Pricing: Your Competitive Edge Attorney - $1,000,000 Lump Sum *Monthly premiums shown are for an attorney, generic rates, best risk class, issue age 40, 360 day EP. Comparison is based on prevailing rates that were publicly available as of 10/09. If there are any questions about the rates, please contact a representative of that company. Refer to state-specific policy and rider forms for the full definition of all policy provisions, benefits, limitations and exclusions.

  29. Brokers Earn More with Guardian • Generous first-year commissions • Unparalleled renewals* ProVider Plus & Overhead ExpenseDisability Buy-Out • Renewals immediately vested at 100% & continue beyond the 10th year. *Most other insurers pay between 0 – 5%.

  30. Flexibility Your Clients Need– From a Trusted Provider • Berkshire: a financially sound & stable company • Prudent risk management • Rated A++ (Superior) by A. M. Best Company

  31. Marketing Support • Disability Protection Products Producer Guide • Consumer materials: • Product brochures • Flyers, pre-approach letters • HTML e-mails

  32. Marketing Support • Updated Competitive Snapshot Comparisons • Competitive Edge Overview • Support materials • Annotated Sample Policies • Annotated Tax Return • Sample Disability Buy-Sell Agreements

  33. Client-Friendly Illustrations

  34. Business ProVider Disability Insurance Products for BusinessOverhead Expense & Disability Buy-OutA New Standard for Business Protection Disability income products underwritten and issued by Berkshire Life Insurance Company of America, Pittsfield, MA, a wholly owned stock subsidiary of The Guardian Life Insurance Company of America, New York, NY. Product provisions and features may vary from state to state. FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC. 8566-1-2010

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