IDI Standard

© 2010 Standard Insurance Company11399PPT (Rev 11/10)

Individual Disability Income Insurance at The StandardFor producers only. Not for use with consumers

11/10


1. Why IDI is such valuable protection for your customers2. Protector PlatinumSM individual disability income insurance

Base policy provisionsOptional Riders

3. Protector+SM individual disability income insurance Base policy provisionsOptional riders

4. The three kinds of disability5. Disability claims at The Standard6. About The Standard7. More resources for you

Table of Contents


Almost three in ten of today’s 20 year olds will become disabled before reaching age 67.*

Why IDI is such valuable insurance for your customers

*Social Security Administration Fact Sheet 2009.


Why IDI is such valuable insurance for your customers

Average Duration of Disability Lasting More Than 90 Days beginning Prior to Age 65.

Duration of disability is measured from the start of disability to (at most) age 65.

Individual Disability Experience Committee, Society of Actuaries, 2005.

Age Duration

Under 40 5.1 years

40 - 44 6.6 years

45 - 49 6.6 years

50 - 54 5.6 years

55 - 59 3.8 years

60 - 64 1.7 years

The length of disabilities


Why IDI is such valuable insurance for your customersWhen they already have LTD at work, many consumers do not realize that because LTD benefits are usually taxable, benefits from a typical LTD policy covering 60% of income, will only equal about 45% of gross earnings after taxes.

Assumes a 25% tax bracket.


Why IDI is such valuable insurance for your customersWhen they already have LTD at work, and add individual disability income insurance, the same consumers’ coverage could look like this.

Assumes a 25% tax bracket.


Protector PlatinumSM Individual Disability Income Insurance


Included in every policy:

• Guaranteed Renewable Policy• Unlimited Coverage for Mental

Disorder/Substance Abuse• Own Occupation Definition of

Disability• Total Disability Benefit• Presumptive Total Disability

Benefit• Partial Disability BenefitOptional Riders:• Future Purchase Option• Noncancelable Policy

Protector Platinum individual disability income insurance is comprehensive

• Recovery Benefit• Rehabilitation Benefit• Compassionate Disability BenefitSM

• Automatic Increase Benefit• Survivor Benefit• Cosmetic or Transplant Surgery Benefit• Premium Waiver Benefit• Choice of Benefit Periods

• Indexed Cost of Living• Catastrophic

Return to PresentationTable of Contents


• Coverage is guaranteed renewable to the termination date (the policy anniversary next following your age 67) as long as the premium is paid on time.

• The premium can be changed only after the policy is three years old and then, only if the change applies to all policies with similar benefits insuring the same risk class.

Guaranteed Renewable Policy

Return to Protector Platinum Index


The Renewal Option• The Protector Platinum policy ends on the termination date.• Insureds may ask to continue coverage beyond the

termination date under the Renewal Option if they are working at least 30 hours per week and are not disabled at the time of their request.

• Some provisions of the policy will change, and coverage will terminate after the insured recovers from any disability covered under this option.

Guaranteed Renewable Policy (cont’d)



Protector Platinum’s definition of total disability provides for payment of the full monthly benefit in the event the insured is disabled in his or her own occupation. Own occupation means the occupation(s) in which the insuredsare regularly engaged at the time their disability begins. If they have limited their practice to a professionally recognized specialty in medicine or law, then that specialty is their own occupation.

Own Occupation Definition of Disability



Insureds are considered totally disabled if due to their injury or sickness, they are unable to perform the primary duties of their own occupation and they are under the regular care of a physician appropriate for their injury or sickness. This definition of total disability allows the insured to earn an income in another occupation and still receive the full monthly benefit if he or she is are disabled in his or her own occupation.

Total Disability Benefit



Insureds are presumed totally disabled if they suffer an injury or sickness, while the policy is in force, that results in total and permanent loss of any of the following: speech, hearing in both ears not restorable by hearing aids, sight in both eyes after reasonable efforts are made to correct their vision using the most advanced, medically acceptable procedures and devices available, or the use of two limbs.

Presumptive Disability Benefit



Benefits are payable for the lifetime of the insureds, if they chose the To-Age-67 Benefit Period and become presumptively disabled.

Presumptive Disability Benefit (cont’d)



Insureds are considered partially disabled under Protector Platinum when they are not totally disabled and meet one of the definitions of partial disability. There are two periods of partial disability, each with a distinct benefit and definition of partial disability: 1. Initial Period2. Extended Period

Partial Disability Benefit



The Initial Period of partial disability refers to the waiting period and the first six months during which disability benefits are payable for partial disability.During this period insureds are partially disabled if:• They are working in their own occupation or any other

occupation, and• Due to their injury or sickness, they have a

• loss of duties, or

• loss of time, or

• loss of income,

and they are under the regular care of a physician appropriate for their injury or sickness.

Partial Disability Benefit: Initial Period



During the Initial Period, while benefits are payable, insureds are eligible for 100 percent of the policy’s basic monthly benefit.

Partial Disability Benefit: Initial Period (cont’d)


After the Initial Period, during the Extended Partial Disability of Partial Disability, insureds are considered partially disabled if:• They are working in their own occupation or any other

occupation, and• Due to their injury or sickness, they have a loss of income,

and• They are under the regular care of a physician appropriate

for their injury or sickness. During the Extended Period of partial disability, the monthly benefit will be proportional to the insureds’ loss of income.

Partial Disability Benefit: Extended Partial Disabilty


Immediately after insureds have recovered from their disability under the provisions of Protector Platinum, The Standard will pay them a recovery benefit if they have a loss of income and that loss is solely the result of the injury or sickness that caused their disability. The monthly benefit amount is proportional to their loss of earnings for that month.

Recovery Benefit



If insureds participate in a voluntary rehabilitation program to help prepare for their return to full-time work, The Standard will pay the reasonable costs of the program under the following circumstances:•They have accepted the terms and objectives of the program, and

•The Standard has approved the program and determined it meets the mutually agreed-upon objectives.

Rehabilitation Benefit



The Standard’s Compassionate Disability Benefit pays insureds a monthly benefit if they lose income while taking time away from work to care for a Loved One* who has a serious health condition.

*A parent, spouse, domestic partner, child, including an adopted child, stepchild and child of domestic partner.

Compassionate Disability BenefitSM



The maximum amount of Compassionate Disability Benefit The Standard will pay under any one policy for all claims and all Loved Ones, is an amount equal to six times the basic monthly benefit.

Compassionate Disability Benefit (cont’d)



• Insureds are eligible for this benefit if they are under age 60 on the policy’s effective date.

• This benefit raises their policy’s basic monthly benefit by 4% each year during the increase period, compounded during the increase period, without evidence of insurability.

• Benefit increases occur on their policy’s anniversary.

• Insureds have the right to refuse Automatic Increase Benefits.

Automatic Increase Benefit



• The increase period lasts for up to five consecutive years.

• Insureds may be eligible to apply for additional increase periods to begin immediately after the end of the prior increase period.

• Premiums for each increase are based on age and risk class at time of the increase.

• Automatic increases do not take effect when insureds are receiving disability benefits or recovery benefits.

Automatic Increase Benefit (cont’d)


The Standard pays a Survivor Benefit for three months beyond the date of an insured’s death, if he or she dies while disability or recovery benefits are payable under the Protector Platinum policy.

Survivor Benefit



The Standard pays a monthly benefit to insureds if, more than six months after their Protector Platinum policy effective date, they are disabled due to sickness as a result of surgery to improve their appearance, prevent disfigurement or transplant part of their body to someone else.

Cosmetic or Transplant Surgery Benefit



The Standard will waive all premiums due under this policy while disability benefits or recovery benefitsare payable.

Premium Waiver Benefit



The maximum benefit period is the maximum period of time The Standard will pay disability benefits for any one continuous disability and any recovery benefits related to that disability. Insureds may choose from the following maximum benefit periods: two years, five years, ten years, or to age 67. For any maximum benefit period The Standard will not pay benefits beyond the later of the policy termination date or the date on which 24 months of benefits have been paid..

Choice of Maximum Benefit Periods



Protector Platinum individual disability income insurance Optional Riders



Under the Future Purchase Option, insureds may be eligible to increase their policy’s monthly benefit once a year, on the policy’s anniversary date. Under special circumstances, they may be able to purchase increases at times other than the policy’s anniversary.

Future Purchase Option



When insureds wish to ensure their premium rates cannot be changed before their policy termination date, the Noncancelable Policy Rider will allow them to do so as long as they pay their premiums by the end of each grace period.

NoncancelablePolicy Rider



When insureds choose to add the Indexed Cost of Living Benefit Rider to their Protector Platinum policy, the monthly benefit payment will increase annually based on changes in the Consumer Price Index, up to a limit of 3% or 6% per year, as chosen by the insured.

Indexed Cost of Living Rider



Catastrophic disability means insureds are unable to perform two or more activities of daily living without assistance, have a severe cognitive impairment, or have a Presumptive Total Disability. Activities of daily living include: bathing, continence, dressing, eating, toileting and transferring. Transferring is moving into or out of a bed, chair, or wheelchair, with or without adaptive devices. The Catastrophic Disability Benefit Rider pays the insured a monthly benefit in addition to the total disability benefit with Protector Platinum.

Catastrophic Disability Benefit Rider



Exclusions from coverage

• The Standard will not pay benefits for the first 90 days of disability due to pregnancy or childbirth, disability due to war, disability caused by committing a felony or participation in a riot, or disability caused by intentionally self-inflicted injury.

• The Standard will not pay benefits for a pre-existing condition unless it is disclosed on the application and it is not specifically excluded from coverage.




A preexisting condition is any mental or physical condition for which:• The insured has consulted a physician, and received

medical treatment, services or diagnostic procedures, and• The insured has taken prescription drugs or medications,and• A reasonably prudent person would have sought medical

advice, care or treatment, during the 365 day period preceding the policy’s effective date.



The Protector+SM and Protector+CAIndividual Disability Income Insurance



• Definition of Total Disability• Definition of Presumptive Total Disability• Definition of Continuous Disability• Guaranteed Renewable• Renewable for Life• Rehabilitation Benefit• Survivor Benefit• Waiver of Premium Benefit• Cosmetic or Transplant Surgery Benefit• Exclusions from Coverage• Optional Riders

Protector+ and Protector+ CA



Because of the insured’s injury or sickness:

Definition of total disability

• the insured is unable to perform the substantial and material duties of his regular occupation; and

• the insured is not engaged in any other gainful occupation; and

• the insured is under the regular care of a physician appropriate for the injury or sickness. This physician’s care requirement is waived when The Standard receives written proof, satisfactory to The Standard, that further care would be of no benefit to the insured.

• the insured is unable to perform with reasonable continuity the substantial and material acts necessary to perform his or her regular occupation in the usual and customary way and

• chooses not to work in any other gainful occupation.

If the insured chooses to work at any job, he will not be considered totally disabled, however he may qualify for partial disability, found in the Partial Disability Rider automatically included with the policy.

In California

Return to Protector+ Index


The insured’s total and permanent loss, because of injury or sickness, of one of the following:

• speech;• hearing in both ears, not restorable by hearing aids;• use of both hands;• use of both feet, or use of one hand and one foot;or• total and permanent loss of sight in both eyes. Both eyes

must measure at or below 20/200, after reasonable efforts are made to correct vision, using the most advanced medically acceptable procedures and devices available.

Definition of presumptive total disability



Recurrent periods of disability from the same cause(s) if separated by the insured’s recovery of less than twelve* months.Waiting period must be satisfied within the total number of consecutive days equal to: twice the waiting period, if 180 days or less,or

1½ times the waiting period, if more than180 days

Definition of continuous disability

*Six months in some states

In CaliforniaRecurrent periods of disability from the same cause(s) if separated by the insured’s recovery of six months or less.



Guaranteed renewable to age 66/67. The Standard cannot change any part of the policy, except premiums, after the policy is three years old, so long as the premium is paid by the end of each grace period.

Guaranteed Renewable



• Insureds may ask to continue the policy beyond the termination date if they are working at least 30 hours per week and not disabled at the time of the request.

• Only the benefit for total disability may be available and the premium may change. The maximum benefit period is limited to 24 months before age 75, and to 12 months after age 75.

Renewable for Life



• If while receiving disability benefits, the insured participates in a rehabilitation program approved by The Standard, we will pay the difference between the benefit the insured would have been eligible for if totally disabled, and the benefit for which the insured is eligible.

• If the insured qualifies for the rehabilitation benefit, The Standard will pay the total disability benefit, even if the insured is residually disabled.




• The Standard will also pay • reasonable costs of the

rehabilitation program not covered by other plans or policies,

• the difference, if any, between 1. the benefit you would have been

eligible for if you were totally disabled

and

2. the disability for which you are disabled.

rehabilitation for up to the lesser of 36 months according to the program.




If the insured dies while receiving total disability benefits, The Standard will pay the policy’s basic monthly benefit to the owner or the owner’s estate for the lesser of three months or the number of months left in the Maximum Benefit Period.

* Not available in all states.

Survivor Benefit*



While the insured is disabled: • after the earlier of the date benefits

start or the 90th day of disability, The Standard will waive premiums currently due;

• after completion of the waiting period The Standard will refund any premium due and paid after the date disability began.

Waiver of Premium Benefit



The Standard will consider the insured disabled if, more than six months after the policy is effective, the insured becomes disabled due to cosmetic or transplant surgery.

Cosmetic or Transplant Surgery Benefit




•war, declared or undeclared, whether civil or international;

•act of war;•act incident to war;• insurrection; and•substantial armed conflict with organized forces of a military nature.

In California•war, declared or undeclared, whether civil or international;

• involving nations and/or sovereign territories.

Acts of war or acts incident to war do not include acts of terrorism, so long as such acts are isolated in nature and unrelated to and not arising from war, as defined above.

The Standard will not pay benefits for disability due to war. War means any



The Standard will not pay benefits

•during the first 90 days of the insured’s disability due to pregnancy or childbirth.

•for disability caused or contributed to by the insured:• committing or attempting to commit an assault or felony; or • actively participating in a violent disorder or riot. Actively participating does not include the insured being at the scene of a violent disorder or* riot while performing his or her official duties;*Language not present in Protector+CA policy




The Standard will not pay benefits for:• disability while the insured is confined for

any reason to a penal or correctional institution*

or• Disability resulting from an intentionally

self-inflicted injury.

* Language not present in Protector+CA policy.




Protector+SM

Individual Disability Income Insurance

Optional Riders



Protector+ Riders• Residual Disability Rider • Indexed Cost of Living Rider• Supplemental Social Insurance

Rider• Future Purchase Option Rider• Noncancelable Rider• Own Occupation Rider• Mental Disorder/Substance

Abuse Limitation Endorsement• Catastrophic Disability Benefit

Rider

In California• The Residual Disability Rider is

the Partial Disability Rider. It is mandatory and included in the base policy.

• The Catastrophic Disability Benefit Rider is not available.

• Own Occupation Rider language



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1. The Partial Disability Rider in California, where it is mandatory.2. Not available in California or Connecticut.3. The Own Occupation Rider is available for all 3A, 3P, 4A and 4P occupations except podiatrists

and self-employed stockbrokers.

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Protector+ Riders

Return to Protector+ Index Return to Protector+ Riders Index


Residual disability means the insured is not totally disabled, but because of his injury or sickness:

• his monthly earnings are reduced by 20% or more of his indexed prior monthly earnings; and

• he is under the regular care of a physician appropriate for his injury or sickness; and

• he is able:– to do some, but not all, of the substantial and material duties

of his regular occupation;or– to do all of the substantial and material duties of his regular

occupation, but not for as long a time or as effectively as he did immediately prior to his injury or sickness.

Residual Disability Rider In CA this is the Partial Disability Rider. See next slide.



Partial disability means the insured is not totally disabled, but because of his injury or sickness:

• he is not totally disabled • while actually working in his regular

occupation, as a result of his injury or sickness, he is unable to earn 80% or more of his indexed prior monthly earnings.

Partial Disability Rider CA only, this rider is mandatory and part of the base Protector+ policy.



• The ICOL Rider helps provide a cushion against inflation during a lengthy disability.

• For each year of disability after the first, the rider pays an amount in addition to the policy benefit based on the average annual change in the Consumer Price Index for All Urban Consumers (CPI-U), subject to a cap of either 3% or 6%, whichever is chosen on the application.

• Payment is subject to the policy’s benefit period and other requirements. The amount payable under the rider will not decrease even if the CPI-U decreases.

Indexed Cost of Living Rider



•This rider pays a benefit if the policy’s total disability benefit is payable and no legislated benefits are payable for the disability.

•The insured must apply for legislated benefits for which she may be eligible and meet other requirements in the rider.

•A reduced benefit is available if legislated benefits are payable that are less than the rider benefit amount.

Supplemental Social Insurance Rider



•This rider allows for the purchaseof benefit increases on each policy anniversary subject only to financial underwriting.

•Evidence of the insured’s good health is not required to purchase an increase.

Future Purchase Option Rider



Noncancelable Policy Rider

• This rider changes the policy and all riders made part of the policy from guaranteed renewable to noncancelable and guaranteed renewable.

• The Standard cannot change the policy terms or premiums until the termination date.

• This rider also changes the policy to provide that, if the maximum benefit period is longer than five years and the insured becomes eligible for the benefit for presumptive total disability, the total disability payments will be payable for his lifetime as long as the presumptive disability continues.



Own Occupation RiderDifferent in CA. See next slide.

This rider liberalizes the definition of total disability and is issued with a two-year mental disorder and substance abuse limitation.

Removesthis sentence from the definition of total disability

Because of your injury or sickness:

1. You are unable to perform the substantial and material duties of your regular occupation; and

2. You are not engaged in any other gainful occupation; and

3. You are under the regular care of a physician appropriate for your injury or sickness. This physician’s care requirement will be waived when we receive written proof, satisfactory to us, that further care would be of no benefit to you.



Own Occupation RiderCA language

This rider liberalizes the definition of total disability and is issued with a two-year mental disorder and substance abuse limitation

Removesthis sentence from the definition of total disability

Because of your Injury or Sickness:

1. You are unable to perform with reasonable continuity the substantial and material acts of your regular occupation in the usual and customary way; and

2. You choose not to work in another occupation



• Two-year benefit period limitation for disability caused by mental disorder or substance abuse.

• This limitation endorsement is added to each policy that has the Own Occupation Rider.

• This endorsement may also be used at underwriter discretion.

Mental Disorder/ Substance Abuse Limitation Endorsement



• This rider pays an additional benefit if the insured is receiving the benefit for total disability and is unable to perform at least two activities of daily living (ADLs), has a severe cognitive impairment, or is presumptively totally disabled.

• ADLs include bathing, continence, dressing, eating, toileting and transferring (moving in and out of a bed, chair or wheelchair).

Catastrophic Disability Benefit RiderNot available in CA or CT



There are three kinds of disabilityReturn to Presentation Table of Contents


• Many people, when asked to visualize a disabling event, will picture an event like a car accident.

• Even though it is the type of disabling event most likely to be imagined, it is the kind of event least likely to occur.


There are three kinds of disability


Disability claims at The StandardReturn to Presentation Table of Contents


• The Standard’s claims management approach is responsive, ethical and fair.

• We understand that claimants need both financial and emotional support.

• The Standard teams medical and rehabilitation experts with claims specialists to help customers during their recovery.

We take good care of your customers


About The StandardReturn to Presentation Table of Contents


The Standard has been keeping promises to its customers since 1906 and is one of the leading disability insurance companies in the nation.

If you would like to find out more about The Standard, please visit standard.com

• Financial Strength, Portfolio and Financial Ratings• History• Company Leadership• Corporate Philanthropy

About The Standard

http://www3.standard.com/net/public/Professionals

http://www3.standard.com/net/public/!ut/p/c1/04_SB8K8xLLM9MSSzPy8xBz9CP0os3jvgGBzN29zY0MDLyNTAyM_YyMXF1c3A9dQI_2CbEdFAE1XK1E!/

http://www3.standard.com/net/public/!ut/p/c1/04_SB8K8xLLM9MSSzPy8xBz9CP0os3jvgGBzN29zY0MDLyNTAyM_YyMXF1c3A9cAA_2CbEdFAOHZ204!/

http://www3.standard.com/net/public/!ut/p/c1/04_SB8K8xLLM9MSSzPy8xBz9CP0os3jvgGBzN29zY0MDLyNTAyM_YyMXF1c3A9cgI_2CbEdFAMNpjJQ!/

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ResourcesReturn to Presentation Table of Contents


• The Standard’s IDI insurance professional website at www.standard.com/di

• The Protector Series Product Guide• Protector Platinum sample policy• Protector Platinum policy summary• Protector+ sample policy• Protector+ CA sample policy• Protector+ policy summary• Protector+CA policy summary• It’s easy to find IDI sales, marketing and reference

materials

Resources

Return to Presentation Table of Contents

http://www.standard.com/di

http://www.standard.com/di/forms/di/mkt/9251.pdf




http://www.standard.com/di/forms/di/mkt/12637ca.pdf


http://www.standard.com/di/forms/di/mkt/12638ca.pdf

http://www.standard.com/di/forms/di/mkt/pwrpt/14508ppt.pps

http://www.standard.com/di/forms/di/mkt/pwrpt/14508ppt.pps

IDI Standard

Economy & Finance

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