| For many years, the disability income industry was | | | | percent of their prior earnings if they work part time, |
| dominated by two central, and essentially separate, | | | | encourage claimants to return to work. |
| approaches: group LTD and individual non-cancelable | | | | Selling short-term disability along with long term |
| DI. Long term disability offered no-frills coverage to a | | | | disability is another claims management approach that |
| broad-based clientele, while individual disability | | | | allows insurers to look at a claim before it becomes a |
| insurance provided richer benefits primarily to affluent | | | | long-term disability. All of these risk-management |
| professionals. | | | | techniques focus on keeping employees healthy and |
| In recent years, those distinctions have blurred. | | | | productive, promoting higher employee morale and |
| Greater flexibility, higher benefit limits, shorter | | | | ultimately greater profitability. But today's long term |
| elimination periods and other features have endowed | | | | disability products offer employers even more. |
| LTD with many of the strengths of individual disability | | | | A Flexible Approach Today's LTD products are |
| insurance - often at a significantly lower cost. With | | | | increasingly flexible, affording greater opportunities |
| today's group long term disability products, you can | | | | for employers to tailor their coverage to fit their |
| provide outstanding benefits that meet a wide range | | | | needs. A wide range of benefit options are available, |
| of client needs. | | | | including shorter elimination periods, conversion riders |
| But not all long term disability products are created | | | | and cost-of-living adjustments. |
| equal. The following is a summary of some of the | | | | New funding options provide even greater |
| most significant features that make today's long | | | | flexibility. Voluntary plans, in which employees pay for |
| term disability products so effective. | | | | the total cost of benefits (with guaranteed issue and |
| Total risk management Two pieces of legislation - | | | | group rates), and supplemental buy-up plans, in which |
| the Drug-Free Workplace Act and the Americans | | | | employers provide a basic level of benefits and |
| with Disabilities Act (ADA) - have affected the way | | | | employees have the option of buying enhanced |
| we view the role of disability protection. With their | | | | benefits (again with guaranteed issue and group |
| focus on employee well being and equal opportunity, | | | | rates), are two cost-sensitive options. |
| the acts foster a total risk management approach | | | | Plans combining individual DI with group LTD |
| that encompasses disability protection and | | | | offer perhaps the ultimate in flexibility. Many of these |
| return-to-work services. | | | | plans provide basic LTD coverage to all employees, |
| The better carriers offer rehabilitation services | | | | with highly compensated employees receiving a |
| designed to help disabled claimants return to work. | | | | customized layer of disability insurance on top. |
| Transferable skills assessment, work site modification, | | | | Because these individual policies are sold in multiples, |
| and ADA compliance counseling are among the | | | | they often receive a premium discount and |
| important services a skilled rehabilitation unit provides. | | | | somewhat liberalized underwriting. |
| Employee assistance programs (EAPs) are | | | | No matter what kind of disability income |
| another component of today's quality long term | | | | protection plan you design for your clients - whether |
| disability plans. While the Drug-Free Workplace Act | | | | it's straight LTD or a combination of LTD and |
| highlights the need to help workers with personal or | | | | individual - the key to getting the most out of |
| behavioral problems, many EAPs also offer | | | | today's long term disability products is to clearly |
| management assistance programs that help managers | | | | identify what your clients want. The wide range of |
| confront employees who are causing productivity or | | | | benefits, funding options and product combinations |
| morale issues at work. | | | | enable you to tailor a plan to each client's needs. |
| The growing incidence of "lifestyle claims" has led | | | | By listening carefully and identifying the needs, you |
| some carriers to develop return-to-work incentive | | | | can design a disability plan that delivers just what the |
| benefits. Built-in features, such as zero-day residual | | | | client orders. |
| benefits and allowing claimants to collect up to 100 | | | | |