A Distinctively Different Way to Enhance Your Benefits Portfolio
8545-03-102008-4653
Disability insurance policy form 1200 is underwritten and issued by Berkshire Life Insurance Company of America, Pittsfield, MA, a wholly owned stock subsidiary of The Guardian Life Insurance Company of America, New York, NY. Product provisions and features may vary by state.
How can you build a better benefits offering?
Offer more options to key executives?
All this and more with the help of DI@Work!
Extend more benefits to all employees?
Control costs for your organization?
More about this distinctively different benefit
What does the DI@Work program offer?
• More disability insurance that can complement your Group Long-Term Disability plan or stand alone
• More coverage for individuals—available at discounted rates for groups
• More flexibility in how the program is designed and how it is funded
• More comprehensive support for promoting the benefit, enrolling your employees, and servicing your participants
More about this distinctively different benefit
Let’s talk more about who can benefit—and how:
Top executives who need higher income protection
All employees who need access to additional, affordable coverage
Employers who want to enhance their benefits—while controlling their costs
What “more” can you provide for your top talent?
More disability insurance coverage?
All this and morewith DI@Work!
More protection for all sources of income?
More flexibility in structuring their benefits plan?
More ways to attract and keep top talent
Benefit Caps
Limited Definition of “Income”
Monthly benefit limits, e.g., 60% of salary, up to $10,000 per month
Incentive compensation or bonuses aren't typically included
Taxation Employees pay taxes on Group LTD* benefits when they receive them, reducing the net benefit
* When employer-paid
This publication is offered for the purpose of education and information only and is not intended to constitute tax or legal advice. For information on your specific situation, please consult your personal tax or legal advisor.
Why Group Long-Term Disability Insurance may not be enough
More ways to attract and keep top talent
60% of Base Salary, up to $10,000 a monthAnnual Gross Salary
$120K
What Group LTD may cover: Replaces only 48% of total income!
Could be as much as 100% of total income
What Group LTD Plus Individual Disability Insurance may cover:
Individual Disability InsuranceAnnual Gross Salary Bonus 401(k) Deferral/Match
Let’s look at an example:
$250K + 401(k) Deferral/Match
401(k) Deferral/MatchAnnual Gross Salary
$200KBonus
$50K
Total Current Compensation
More ways to attract and keep top talent
Benefits of buying Individual Disability coverage through the DI@Work program
X
Special coverage for key personnel
Portable
Guaranteed renewable to age 65/67
XFlexible design options on individual basis
Not TypicallyTax-free benefits
Not TypicallyProtects retirement contributions
Not TypicallyProtects incentive income
Not TypicallyEmployee-paid
Group LTD
Group Long-Term Disability vs. DI@Work
1If employee-paid.
X
X
Optional
IDI through DI@Work
1
What “more” could you provide your all employees?
Would employees really value more disability insurance? What % of employees are concerned about having enough income if they become disabled?
27%
48%
62%
83%
Will employees value supplemental disability insurance?
Would employees really value more disability insurance? What % of employees are concerned about having enough income if they become disabled?
Navigating the Workplace Benefits Landscape, LIMRA, 2006 Report.
27%
48%
62%
83%
83%
More ways to meet the needs of all employees
Three out of every 10 workers will become disabled before they retire.
U.S. Census Bureau, Table 198 Surveys, 1997.
Not just for highly compensated employees…
That makes adequate disability insurance no longer a luxury, but a key benefit.
Many employees live paycheck to paycheck
More ways to meet the needs of all employees
More ways to meet the needs of all employees
Navigating the Workplace Benefits Landscape, LIMRA, 2006 Report.
Many may be willing to pay for this benefit themselves
60%
% of Employees Who Find Voluntary Benefits Appealing
61%
More ways to meet the needs of all employees
Personal Disability Insurance vs. Individual Disability Insurance through DI@Work
Personal DI@Work
Guaranteed standard issue X
Premium discounts off typical rates X
Detailed medical/financial underwriting X
Simplified application process X
Online application X
Portable if you leave your employer N/A
Why coverage through the DI@Work program is more accessible and affordable
More ways to meet the needs of all employees
Total disability definition options:
can help tailor when benefits are paid
How individual disability insurance expands protection options
Partial disability option:
can be added to expand covered situations
Catastrophic* disability benefit option:
may replace up to 100% of income
Product provisions and features may vary by state.
*Catastrophic Disability Benefit Rider is not available in CA, CT or TX.
More ways to meet the needs of all employees
Flexible benefit levelsTo meet the varying needs of diverse groups
How individual disability insurance expands protection options
Guaranteed access to additional coverage:
Option to buy more each year
at discounted rate
Annual cost-of-living adjustment option*
Retirement protection coverage option:
replaces up to 100% of employee contributions and employer match
*Not necessarily protection against increases in the cost of living.
What “more” is your organization looking for?
More control over your benefits costs?
More ways to streamline benefits administration?
More flexibility to tailor your benefits portfolio?
More support educating employees on their benefits?
Now you can have it all…with DI@Work from Berkshire Life Insurance Company of America!
What “more” is your organization looking for?
More advantages for your organization
Your choice of funding arrangements:
• Voluntary: paid for by employees; benefits paid to them would be tax-free
• Employer-Paid: may be for just a select group of employees; deductible as a corporate expense
• Cost-Sharing: costs can be shared by both the employer and the employee
• Combination: any mix of the arrangements listed above for different groups
More control over benefits costs
This publication is offered for the purpose of education and information only and is not intended to constitute tax or legal advice. For information on your specific situation, please consult your personal tax or legal advisor.
More advantages for your organization
% of BusinessesAlready Offering
Voluntary Benefits
53%
Why consider adding as a voluntary benefit
29%
% of BusinessesConsidering Adding Voluntary Benefits
Analyzing the Size and Potential of Voluntary Worksite Benefits, LIMRA, 2007.
More control over benefits costs
More advantages for your organization
• As a complement to an existing Group LTD plan
• As a stand-alone option for all or some of your employees
• As a seamless program combining both Group Long-Term Disability from Guardian and Individual Disability Insurance from Berkshire Life, one of the few providers that can offer both
Different ways you can structure your individualdisability insurance through the DI@Work program:
More flexibility to tailor your program
More advantages for your organization
• Expert hands-on management of the program announcement and enrollment process
• Flexible billing arrangements, including direct billing your employees if you choose
• Award-winning customer service team
How we can minimize your workload:
More ways to streamline your benefits administration
More advantages for your organization
- Customized letters/brochures
- HTML emails- Flyers/posters- Intranet/
newsletter text- Postcards- Automated voicemails
Initial enrollment period:- Online enrollment site- Personalized emails- Group meeting/recorded
presentations- Education-based enrollment - True e-signature—no paper
applications
Ongoing enrollment promotion- Reminder emails/follow-up calls- Automated voicemails- Personalized proposals- Choice of product packages
Enrollment tracking- Monitoring of enrollment activities- Demographic reporting
ENGAGE ENROLL SERVICE RE-ENGAGE
- Customized letters/brochures
- HTML emails- Flyers/posters- Intranet/
newsletter text- Postcards- Automated voicemails
Initial enrollment period:- Online enrollment site- Personalized emails- Group meeting/recorded
presentations- Education-based enrollment - True e-signature—no paper
applications
Ongoing enrollment promotion- Reminder emails/follow-up calls- Automated voicemails- Personalized proposals- Choice of product packages
Enrollment tracking- Monitoring of enrollment activities- Demographic reporting
More ways to streamline your benefits administration
- Ongoing campaignfor newly eligible, previous declines, and those eligible forcoverage increases
- Payroll deduction reminders
- Billing options- Welcome kit/policy- Toll-free claim service- Ongoing communication
- Ongoing campaignfor newly eligible, previous declines, and those eligible forcoverage increases
- Payroll deduction reminders
- Billing options- Welcome kit/policy- Toll-free claim service- Ongoing communication
More advantages for your organization
Berkshire Life Insurance Company of America: 2007 Dalbar Award for outstanding service
More ways to streamline your benefits administration
More advantages for your organization
• Not a “generic” process, but customized to address your organization’s specific needs
• Can accommodate unique messaging for different groups within the same plan
• Flexible billing arrangements, including direct billing your employees if you choose
• State-of-the-art online enrollment Web site (or traditional paper options if you prefer)
More support educating your employees
More advantages for your organization
State-of-the-art online experience
More support educating your employees
More Streamlined
Ability to apply online by answering a few simple questions
More Educational
Personalized education/ income scenarios with actionable navigation
More Customized
A customized experience that provides enrollment information for employees and various coverage options to choose
More advantages for your organization
Your organization’s branding
Your plan design: coverage limits and available options
Each group’s unique arrangements: e.g., employees versus executives
Each individual’s specific situation: ability to choose less coverage or even apply for more coverage beyond guaranteed offer
Enrollment site can be customized to reflect:
More support educating your employees
More advantages for your organization
A distinctively different option to helpbuild your benefits plan:
More insights into the benefits people truly value
More flexible solutions tailored for each organization
More customized communications
More streamlined processes
More expertise every step of the way