Principal Social Insurance Substitute

[BNTRS]

Oh the internet...

The answer to your question is yes Principle has quotes with SIS rider. This is traditionally used to decrease premium.

You ought to be able to remove this and just show the client base DI coverage no SIS.

Then roll out a Guardian quote. That'll make him run to Mass or Principle in a heart beat.

 

[lhkorn99]

Oh the internet...

The answer to your question is yes Principle has quotes with SIS rider. This is traditionally used to decrease premium.

You ought to be able to remove this and just show the client base DI coverage no SIS.

Then roll out a Guardian quote. That'll make him run to Mass or Principle in a heart beat.

Thanks. Principal and Mass were same price, but principal that was Principal with SIS. So looks like we will go with Mass.

 

[dgoldenz]

Why not Guardian? At this low benefit level, the pricing between companies is going to be almost the same. Might as well get the best contract.

Is this a home-based business?

 

[lhkorn99]

Why not Guardian? At this low benefit level, the pricing between companies is going to be almost the same. Might as well get the best contract.

Is this a home-based business?

not a home based business. i didn't quote guardian, but you are right, they might price the same, or maybe more because of the built in own-occ, no?

 

[dgoldenz]

not a home based business. i didn't quote guardian, but you are right, they might price the same, or maybe more because of the built in own-occ, no?

Why would they not want the true own-occ? If the benefit is $1500/mo, they are all going to be about the same price assuming the client is relatively young. Guardian also has a new Limited Provider Plus policy that is more similar to what the other companies offer and is priced 20-30% lower than the regular Provider Plus product.

 

[VolAgent]

Why would they not want the true own-occ? If the benefit is $1500/mo, they are all going to be about the same price assuming the client is relatively young. Guardian also has a new Limited Provider Plus policy that is more similar to what the other companies offer and is priced 20-30% lower than the regular Provider Plus product.

The Ohio National DI consultant once said, do you know how many people who are disabled in their field go back to work in another field? He said it was near zero and if it wasn't a doctor it might as well be zero.

He said that is the reason he didn't put it in their contract except for doctors. It basically was never used and it allowed him to reduce the premium slightly.

 

[dgoldenz]

The Ohio National DI consultant once said, do you know how many people who are disabled in their field go back to work in another field? He said it was near zero and if it wasn't a doctor it might as well be zero.

He said that is the reason he didn't put it in their contract except for doctors. It basically was never used and it allowed him to reduce the premium slightly.

That sounds like something an insurance company rep would say. Who says the client will be in the same job as they are now if they become disabled? Maybe they get tired of web design and fulfill their lifelong dream of becoming a chef, then develop chronic foot pain which results in them becoming disabled as a chef, but able to sit in a chair all day, so they go back to web design and collect their DI benefits + salary. Most people will try to find some type of work to keep themselves busy even if they can't do their prior job because of the disability.

It is better to have a true own-occ definition than to not have one, especially when the pricing difference is minimal. There are other reasons that Guardian's policy is superior too, not just the built-in true own-occ definition. There's also a reason Guardian is universally known as the top individual DI carrier and ON is not. Perhaps the ON consultant should consult with the Guardian consultant and get some pointers.

 

[VolAgent]

That sounds like something an insurance company rep would say. Who says the client will be in the same job as they are now if they become disabled? Maybe they get tired of web design and fulfill their lifelong dream of becoming a chef, then develop chronic foot pain which results in them becoming disabled as a chef, but able to sit in a chair all day, so they go back to web design and collect their DI benefits + salary.

It is better to have a true own-occ definition than to not have one, especially when the pricing difference is minimal. There are other reasons that Guardian's policy is superior too, not just the built-in true own-occ definition.

I don't discount that.

I don't sell much DI so I really don't care, but I guess his thoughts were, there are few cases where this would apply and the premium savings would benefit the majority.

Think about it, you hate web design, it is a grind. So you become a chef and are doing well, suddenly you can't work as a chef any more. Even if you are able, do you really want to go back to web design if you're going to collect on your DI from now on?

 

[dgoldenz]

I don't discount that.

I don't sell much DI so I really don't care, but I guess his thoughts were, there are few cases where this would apply and the premium savings would benefit the majority.

Think about it, you hate web design, it is a grind. So you become a chef and are doing well, suddenly you can't work as a chef any more. Even if you are able, do you really want to go back to web design if you're going to collect on your DI from now on?

And yet ON is still not competitive on DI. The job example was just that, an example. There are many scenarios where it could apply. I doubt most people qualifying for DI benefits would just want to sit on the couch and become a vegetable instead of working.

 

[BNTRS]

Ok hold on time out. No I didn't read all of the back and forth over ONL, so I might be missing something, but please give me an example where a web designer goes out on claim where pure own occ is going to be a real life saver to him.

I love Berkshire, I used to whole sale the product, but even I wouldn't have attempted to convince someone like this that a company like Guardian/Berkshire would be critical.

If it's price competitive maybe. If you can save several 100/year elsewhere on a modified own occ definition, a 20% loss of income residual, and a 3% COLA I say do it.