IDI Supplement group disability insurance offers differentiated value
Regional Sales Vice President
Once in a while an insurance product comes along that allows agents to significantly increase the expert consulting value they offer clients and escape “the lowest possible price” treadmill. Protecting the incomes of physicians and dentists with specialized group disability products offers this scenario for many producers who understand the power of IDI supplement style group disability coverage.
Protecting the Ability to Contribute to Retirement
Offering disability coverage to your Physician group clients helps to protect their most valuable asset – their ability to earn an income. While the emphasis for income protection tends to be the here and now, “What would my lifestyle look like if I had an income loss due to a disabling event?” there is another, equally important question: “What will my future income look like if I am disabled?”
Disability benefits tend to end at our normal retirement age, but life may go on well beyond this date. Retirement plans are designed to help provide the income needed to continue a retiree’s lifestyle. But what if a disabling event prior to retirement suddenly ends the contributions needed for a physician’s retirement?
Pension Contribution Benefit – A Potential Life Changer
The Pension Contribution Benefit available with the IncomeProtect long-term disability insurance contract is designed to continue a claimant’s qualified retirement plan contributions, providing a critically important, but often neglected solution to the need for income during retirement. This benefit begins as soon as a claimant is eligible for LTD benefits, is payable in full whether the claimant is totally or partially disabled, and continues for as long as LTD benefits are paid to the claimant. Contributions up to $4,000 a month are available.
Example: A $1 Million + Difference at Retirement*
Here’s an example of the value of the Pension Contribution Benefit: A Physician is earning $400,000 annually, and contributes 10% of income to his or her Employer-sponsored qualified retirement plan ($3,333 a month). If this Physician is disabled at age 49, and receives an LTD benefit until age 67 (the claimant’s Social Security Normal Retirement Age), then the cumulative effect of 17 years of Pension Contribution Benefit payments (assuming a 5% rate of return) would be OVER $1,000,000!
As a true disability consultant, don’t neglect your client’s need for income both NOW and LATER. Click the button to download a Pension Contribution Benefit calculator that you can use in your next MGIS/Sun Life IncomeProtect presentation!
*Hypothetical example for illustrative purposes only. Actual results may vary.
Note: The IRS has qualified retirement plan requirements that may apply to this rider. Thus, we advise that employers consult with their plan advisor about any plan qualification tax issues related to plan contributions being made from this rider and whether the plan must be amended to accept payments under this rider.
Optional benefits are available at an additional cost.
Group life and disability insurance policies are underwritten by Sun Life Assurance Company of Canada (Wellesley Hills, MA) in all states, except New York, under Policy Form Series 93P-LH, 07P-LH-PT/07C-LH-PT, 12-STDPort-C- 01, 12-GP-01, and 12-DI-C-01. In New York, group life and disability insurance policies are underwritten by Sun Life and Health Insurance Company (U.S.) (Lansing, MI) under Policy Form Series 13-GP-LH-01, 13-LTD-C-01-MGIS, 13-STD-C-01-MGIS, 13-ADD-C-01-MGIS, 13-GP-LF-01, 13-LF-C-01-MGIS, 12-GPPort-01, 13-LFPort-C-01, 13- ADDPort-C-01 and 12-STDPort-C-01.
The disability policies provide disability income insurance only. They do NOT provide basic hospital, basic medical, or major medical insurance as defined by the New York State Insurance Department.
This coverage does not constitute comprehensive health insurance (often referred to as “major medical coverage”) and does not satisfy the requirement for Minimum Essential Coverage under the Affordable Care Act.
Administration for physician products is provided by Medical Group Insurance Services, Inc. (MGIS), in all states, except as follows: in CA by MGIS Insurance Agency, Inc.; in NY by MGIS Insurance Agency. Product offerings may not be available in all states and may vary depending on state laws and regulations.
© 2016 Sun Life Assurance Company of Canada, Wellesley Hills, MA 02481. All rights reserved. Sun Life Financial and the globe symbol are registered trademarks of Sun Life Assurance Company of Canada. Visit us at www.sunlife.com/us.
SLPC 27667 8/16 (exp. 8/17)