Your Opinion Please on a Case

[insurehound]

So I have three highly compensated owners of a small business looking to me for some DI quotes. They currently have a quote from The Guardian.

I was wondering if it makes sense to get creative by offering them a Group/Individual combo DI plan using both types of products. While that may be a more reasonably priced option, I'm concerned that it may not be as effective come claim time being that Group DI has limitations.

Any thoughts? Also, does anyone have any competitive advice on competiting against the Guardian?

Thank you in advance for any insight you can provide.

 

[ikeman07]

Put as much individual DI in place as possible and then 6 to 12 months later layer a small group DI policy on top of it. You should also consider a Disability Overhead Expense policy and buy out policy for the owners.

 

[BNTRS]

This case is likely less about the carrier or the product, and more about the income continuation plan in general. Being a small business the first question that I would ask is if they have a Qualified Sick Pay Plan? If they don't, you'd be doing them a huge favor in discussing the benefits of having one with them.

What do these three people do? Quotes from Guardian likely mean they are professionals, but specifics would help on that. Guardian is strong, and more flexible than is used to be (up until a little over a year ago, their individual product was pure-own occ no if's and's or but's, not so anymore).

Guardian is likely to be one of the most expensive quotes they get. And the well trained DI agent is going to emphasize the importance of contract language over price, and he or she would likely be correct in doing so.

Still, depending on what they do, Guardian's contract may not be the best match.

You could also discuss the possibility of a multi-life DI set up here.

Also, is this just for individual income replacement purposes? Is there a buy/sell in place? Is it covered by disability insurance?

Companies that would compete well against Guardian:

Massmutual

The Standard

Principal

Now, like I said, if you make this more competent income continuation planner, you could simply sell the Guardian policy as well.

 

[insurehound]

Thanks so much...I didn't know The Guardian has become more flexible so that's good information. I did present The Standard using the multi-life option.

There is a Life Buy/Sell set up and I have stressed the importance of following up with DI Buy-out but the client wants to address Income replacement first.

Thanks BNTRS and ikeman07 for your help!

 

[ikeman07]

How did it go, did you get the case?

 

[insurehound]

still working on it...decision has not been made but thanks for asking!

 

[Fortify]

Hey there ... Just joined the Forum and read the thred.
With 3 or more lives you should definitely check out Principal for DI and OE. If your clients are executive class you can provide up to 40% discount off unisex rates for them. Also Principal is one of the only companies that will provide 20% discounts on BOE for 3+ lives (key man DI could also be a good option as OE is a reimbursement contract)
Good luck

 

[tvchild]

If I were you I would get my own Guardian quote. Guardian offers QSPP and executive bonus programs with unisex rates. Also, their new limited product can be used under both programs. This may not be something the other agent is talking to them about. That way you are covering all your bases and you come across as an expert. As for price, Guardian stacks up to the others just fine when comparing apples to apples. Mass's and Principal's DI product are almost identical to Guardian's Limited product and Standard compares better with Guardian's Provider Plus product.