2008 Voluntary Short-Term Disability
Plans
Today, voluntary short-term disability accounts for the largest percentage of voluntary sales, totaling an estimated $820 million. But these strong sales don’t come without some challenges and pressures. Carriers who are serious about this market must have up-to-date product features, competitive pricing and underwriting, and some type of “differentiator” that makes their product stand out from others in the market.
The objective of the 2008 Voluntary Short-Term Disability Plans Spotlight Report is to help carriers stay current on the ever-changing voluntary STD market. With this data, carriers can compare their company’s product features and benefits, underwriting guidelines, and administrative practices against those of other carriers in the marketplace.
The report is divided into three sections. The first section provides an overview of the report’s structure, along with key findings and recommendations. The second section (Carrier Marketing and Results) provides general information on each carrier’s results, competitors, persistency, penetration, competitive challenges, etc. The third section (Product Details by Carrier) takes a close look at the practices of 24 voluntary short-term disability providers, including:
- Product structure
- Underwriting parameters
- Costs
- Distribution and commissions
[Note: In order to protect the confidentiality of the carriers profiled, all data is reported anonymously by assigning each carrier a random number.]
Order Info: The report is available for purchase for $4,000. To order your copy, simply email us at info@eastbridge.com or call (860) 676-9633. Published 2008
Table of Contents
1. Executive Summary
A. Introduction
B. Report Objectives
C. Report Structure
D. Methodology
E. Recommendations
F. Key Findings
2. Carrier Marketing and Results
A. Major Competitors
B. Sales for 2007
C. Profitability
D. Penetration
E. Persistency and Retention
F. Claims Process
G. Role of Disability in Portfolio
H. VSTD Product Life Cycle
I. Future Trends in VSTD Market
J. Current Competitive Challenges
3. Product Details by Carrier
A. General Information
1. Definition of Voluntary
2. Standalone vs. Core/Buy-up Option
3. Employer-Paid STD Plan
4. Voluntary LTD Plan
B. Product Features and Benefits
1. Minimum/Maximum Benefit Amounts
2. Flat Benefit/Percent of Salary
3. Maximum Percent of Salary Replacement
4. On- and/or Off-the-Job Benefits
5. Benefit Period Options
6. Definition of Disability
7. Covered Earnings Definition
8. Elimination Periods
9. Pre-Existing Exclusions
10. Limited Benefits for Pre-Existing Conditions
11. Waiver of Pre-Existing for Takeovers
12. Coverage for Mental/Nervous Disorders
13. Coverage for Pregnancy
14. Coverage for Elective or Cosmetic Surgery
15. Exclusions
16. Coverage for Partial Disabilities
17. Coordination of Benefits
18. Waiver of Premium
19. Waiver/Continuation of Coverage for Layoffs
20. Rehabilitation Benefits
21. Other Benefits/Features
22. Optional Benefits or Riders
23. Modifications for Statutory Disability States
24. Renewability
25. Conversion/Portability Provision
26. Employee Choices
27. Multiple Plan Designs within Same Group
28. Differentiating Product Features
C. Underwriting
1. Account-Level Underwriting
2. Unacceptable Accounts
3. Employee Eligibility Guidelines
4. Guaranteed Issue
5. Gatekeeper Questions
6. Other Restrictions or Rules/Guidelines
7. Simplified Issue
8. Health Questions
9. Full Medical Underwriting
10. Open Enrollment Options
11. Increasing Coverage
D. Costs
1. Published Rates vs. Census Rates
2. Quotes on Virgin Cases
3. Age Bands vs. Composite Rate
4. Rate Classes
5. Policy Fees
6. Rate Guarantees
7. Rate Comparison
8. Buy-up Rates
E. Distribution and Commissions
1. Base Commission Rates
2. Takeover Rates
3. Incentives
F. Enrollment
1. Method Used
2. Personalized Enrollment Forms
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