Why DI? why now? DI1286 1-14 For Producer use only. Not for use with clients

why DI? why now?

DI1286 1-14 For Producer use only. Not for use with clients.

disclosures

• In approved states, DInamic Foundation (forms 4501NC, 4502GR and 4503BOE) is issued by Ameritas Life Insurance Corp. located at 5900 O Street, Lincoln, NE 68510. In New York, DInamic Foundation (forms 5501-NC, 5502-GR and 5503-BOE) is issued by Ameritas Life Insurance Corp. of New York located at 1350 Broadway, Suite 2201, New York, NY 10018. Policy and riders may vary and may not be available in all states.

• This information is provided by Ameritas®, which is a marketing name for subsidiaries of Ameritas Mutual Holding Company, including, but not limited to, Ameritas Life Insurance Corp., Ameritas Life Insurance Corp. of New York and Ameritas Investment Corp., member FINRA/SIPC. Ameritas Life Insurance Corp. is not licensed in New York. Each company is solely responsible for its own financial condition and contractual obligations. For more information about Ameritas®, visit ameritas.com.

Ameritas® and the bison design are registered service marks of Ameritas Life Insurance Corp. Fulfilling life® is a registered service mark of affiliate Ameritas Holding Company. © 2014 Ameritas Mutual Holding Company


For Producer use only. Not for use with clients.

everything rests on income

DI1286 1-14


income potential at risk

Average Income to Age 67*

Current Age

$50,000/yr

$75,000/yr $100,000/yr $150,000/yr $200,000/yr $250,000/yr $300,000/yr

30 $1,850,000 $2,775,000 $3,700,000 $5,550,000 $7,400,000 $9,250,000 $11,100,000

35 $1,600,000 $2,400,000 $3,200,000 $4,800,000 $6,400,000 $8,000,000 $9,600,000

40 $1,350,000 $2,025,000 $2,700,000 $4,050,000 $5,400,000 $6,750,000 $8,100,000

45 $1,100,000 $1,650,000 $2,200,000 $3,300,000 $4,400,000 $5,500,000 $6,600,000

50 $850,000 $1,275,000 $1,700,000 $2,550,000 $3,400,000 $4,250,000 $5,100,000

55 $600,000 $900,000 $1,200,000 $1,800,000 $2,400,000 $3,000,000 $3,600,000

60 $350,000 $525,000 $700,000 $1,050,000 $1,400,000 $1,750,000 $2,100,000

*This does not take into account any raises, bonuses or other salary increases that may occur.

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potential lost earnings due to disability

Loss of Lifetime Earnings

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

Age 35 Age 45 Age 55

$25,000 $50,000 $100,000

Income

Age at DisabilityDI1286 1-14


disability would disrupt retirement savings

0

200000

400000

600000

800000

1000000

Age 35 $25,000

Age 35 $50,000

Age 35 $100,000

Employee FundedEmployer Funded

Source: U.S. Census Bureau, 2009

Retirement Savings

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average savings by age of head of household

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

Savings Value

Lessthan35

35-44 45-54 55-64 65-74 75 ormore

Age

Average Savings By Age

Mean

Median

Survey of Consumer Finances, Federal Reserve System, 2009

DI1286 1-14


workers’ savings only last a limited period of time

Average # ofMonth’sIn Pre-DisabilityIncome Saved

0

1

2

3

4

5

6

7

Age 35 Age 45 Age 55

$100,000 $50,000 $25,000

Source: U.S. Census Bureau Survey of Income Program and Participation, 2009.

Income

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most Americans are ignorant on social security DI requirements*

• Five full months of total disability required before benefits are payable.

• Expectation of total disability for life, or expectation of death within 12 months.

• Definition of disability is the inability to engage in any ‘substantial gainful activity.’

• Administrative process can last months or years.

* Online Social Security Handbook

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SSDI benefits do not replace enough pre-disability income

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$25,000 $50,000 $100,000

Annual Lost IncomeAnnual SSDI Benefits

Poverty Level – Family of 4 for 2011 ($22,350)

Source: Federal Register, Vol. 76, No. 13, January 20, 2011, pp. 3637-3638

SS Avg for 2011 ($22,704/yr)

DI1286 1-14


what is the ‘average’ duration for long-term disability?

0

10

20

30

40

50

60

70

80

Odds

25 35 45 55

Age

Odds of Being Disabled for an Extended Period

Percentage Still Disabled at the End of 2 years and 90 Days

Percentage Still Disabled at the End of 5 years and 90 Days

Source: 2010 Guide to Estate, Employee & Business Planning, by Donald Cady

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which odds are greater? death or disability?

0

1

2

3

4

5

6

7

8

Number of Times More Likely to

Become Disabled vs Dying

30 40 50

Age

Male

Female


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the need has never been greater

• At no working age (30-50) are the odds of death greater than disability.

• The younger the individual, the greater the odds of a disability occurring during their working career.

Source: 2010 Field Guide to Estate, Employee & Business Planning, by Donald F. Cady, Copyright 2010, The National Underwriter Company.

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odds of becoming disabled during a working career


0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

Odds

30 35 40 45 50

Age of Each Person

Chances out of 1,000 That at Least One Long-Term (90 day) Disability Will Occur Before Age 65

To Any 1 Person

To Any 1 out of 2 People

To Any 1 out of 3 People

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source of disabilities

Source: Gen Re, U.S. Group Disability Rate & Risk Management Survey, 2010

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

2009

2007

2005

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why now?

• Cost of Disability Insurance is low compared to other insurance needs.

• Need may be greater than life insurance and other “traditionally” purchased insurance programs.

• Workers are at risk of losing their ability to clothe, feed, or house themselves.

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who is buying disability income insurance?

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

2002 2003 2004 2005 2006 2007 2008 2009

Doctors Dentists Law yers Executives Accountants

4th Annual Survey of U.S. Individual Income Insurance Market, Milliman, Oct 2010

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Number of Employees

% o

f C

om

pan

ies

Pro

vid

ing

E

mp

loye

e D

isab

ility

C

ove

rag

e

Source: Response Analysis Corporation,1994

marketing opportunity

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many employees think the majority of disability claims are work-related

• Three times as many disabling injuries occur off-the-job versus on-the-job (2.9-1).1

• Nearly three-fourths of the disabling injuries suffered by workers in 2008 occurred off-the-job.1

• Less than 5% of disabling accidents and illnesses are work related.2

1. National Safety Council, Injury Facts, 2010 Edition2. 2011 CDA Long-Term Claims Review

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employees access to group short and long-term disability coverage

24%

18%

36%

27%

47%

36%

62%

60%

0%

10%

20%

30%

40%

50%

60%

70%

1-49 ee 50-99 ee 100-499 ee 500+ ee

# of Employees in Firm

Where Your Client Works May Determine If They Have Access To Disability Coverage

STD LTD

Source: July 2009, U.S. Department of Labor Statistics (full-time employees only)

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most smaller employers do not offer LTD benefits

25%

45%

76%87% 90%

95%

0102030405060708090

100

10-99 20-99 100-499 500-999 1,000-4,999

5000+

Percent (%)

Size of Company – Number of Employees

Source: LIMRA, “The Changing Group Insurance and Healthcare Marketplace,” 2003

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what is the actual access to disability benefits?

Source: U.S. Department of Labor, Bureau of Labor Statistics, 2009.

39%

33%

52%

58%

23%

13%

37%

32%

37%

23%

48%

28%

0%

10%

20%

30%

40%

50%

60%

All Workers Management,professionaland related

Service Sales andoffice

Naturalresources,

constructionand

maintenance

Production,transportionand material

moving

STD LTD

DI1286 1-14


how to join the cause

• Ask your personal clients or employer clients about their disability plans

• If personal clients, ask “how would you pay your bills if your paycheck stopped?”

• If they say they “have it at work,” ask them to get you a copy of their plan.

• If employer clients, ask them if they have a plan.

• If they say they don’t, ask them “how they have dealt or will deal with the disability of an employee.”

• If they have paid a disabled employee, ask them if they at least have a Salary Continuation Plan. If not, they could have established a precedent they are uncomfortable with for all future claims.

DI1286 1-14


types of disability coverage

• Employer-funded short-term

• Usually self-funded and short in duration.

• Short-Term Disability

• Typically provided by an insurance carrier.

• Plans typically have short elimination periods and relatively short benefit periods.

• 0/7-day or 1/8-day elimination periods

• 13- or 26-week duration

• Sold as a benefit per week, i.e.., 60% to $500

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types of disability coverage (cont.)

• Long-Term Disability

• Typically provided by an insurance carrier

• Plans should coordinate with underlying STD

• 90- or 180-day elimination period

• RBD, age 65, five years or two years

• Sold as a benefit per month, i.e.., 60% to $5,000

• Individuals with higher incomes, income outside of base salary, etc., could find themselves “underinsured.”

• DInamic FundamentalSM (offered in U.S. only by Ameritas®)

• Single, lump sum benefit (based on annual earnings) payable upon claim approval. Policy then terminates.

• Simple, affordable and attainable DI coverage targeting middle income Americans

DI1286 1-14


reverse discrimination

$0$1,000$2,000$3,000$4,000$5,000$6,000$7,000$8,000$9,000

$10,000$11,000$12,000

$24,000 $48,000 $120,000 $240,000

60% of Income

LTD CoverageMonthly Benefit

Monthly Income

$5,000/m maximum

LTD Plan of 60% of Salary, 90 E.P., $5,000 maximum

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how to learn more?

• FA 211 “Essentials of Disability Insurance” through The American College and the International Disability Society (IDS)

• Disability Income Advisor (DIA) thru AHIP

• Jeff Sadler’s “How to Sell Disability Insurance”

• Allan Checkoway and Harry Lew’s “Disability Income Insurance”

• Ongoing Ameritas® sales and marketing presentations

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upcoming DI teleuniversities


key contacts

• Your agency or brokerage manager

• Your Ameritas® sales development team

• Your GSI regional director

• The DI product management team

For Producer use only. Not for use with clients.DI1286 1-14

Documents

Why DI? why now? DI1286 1-14 For Producer use only. Not for use with clients