Voluntary Long-Term Disability Insurance
Carriers agree that demand for voluntary long-term disability plans is increasing. More and more employers are moving away from funding long-term disability plans. In a 2006 study published by Eastbridge, 74 percent of employers that offered LTD plans paid all or part of the premiums. In our 2009 study, however, the number decreased to 61 percent. The carriers surveyed said they expect this trend to continue.
Eastbridge’s spotlight report, Voluntary Long-Term Disability Insurance, is designed to help carriers better understand the VLTD insurance market, how their product “fits” relative to the competition, and whether any changes are needed. It gives an overview of the market, including top players, and takes a close look at the voluntary long-term disability products of 13 carriers.
Order Info:The cost of the report is $3,000. To purchase the report, call us at (860) 676-9633 or email info@eastbridge.com. Published 2011.
Table
of Contents
1. Executive Summary
A. Introduction
B. Report Objectives
C. Key Findings
D. Methodology
2. VLTD Market and Carrier Overview
A. Employer Perspective
1. Prevalence of Long-Term Disability Insurance
B. Employee Perspective
1. VLTD Product Ownership
C. Competitors
D. VLTD Plan Types
E. Length of Time Offered
F. Sales
G. Profitability
H. Unique Challenges
I. Trends
3. Detailed Carrier Findings
A. Product Features
1. Minimum/Maximum Benefit Amounts
2. Flat Benefit Amount/Percent of Salary
3. Maximum Percent of Salary Replacement
4. Employee Choice
5. Off-the-Job vs. On- and Off-the-Job Benefits
6. Benefit Period Options
7. Definition of Disability
8. Typical Earnings Covered
9. Elimination Periods
10. Pre-Existing Exclusions
11. Other Exclusions
12. Coverage for Mental/Nervous Disorders
13. Coverage for Partial Disabilities
14. Benefit Coordination/Offsets
15. Waiver of Premium
16. Rehabilitation Benefits
17. Other Benefit Provisions or Services/Features
18. Optional Riders/Coverage
19. Coverage Continuation
20. Conversion/Portability Provision
B. Underwriting
1. Unacceptable Accounts
2. Employee Eligibility Guidelines
3. Guaranteed Issue Guidelines
4. Simplified Issue Guidelines
5. Full Underwriting Guidelines
6. Open Enrollment Options
C. Costs and Commissions
1. Census Rated
2. Age Bands
3. Rate Guarantees
4. Composite Rates
5. Rate Comparison
6. Commissions
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