2011 Voluntary Short-Term Disability Plans
VSTD remains a “core” component of voluntary sales. In 2010, total VSTD sales were $776 million and accounted for 15 percent of all voluntary sales. In another 2010 survey of carriers in the voluntary market, almost all (97 percent) said they have a voluntary short-term disability plan in their portfolio. In addition, 45 percent of the companies responding said they expect VSTD to be a growth product for their company over the next two to three years.
While all of this is good news, carriers that are serious about this market and that want to see continued growth must have short-term disability products with up-to-date features, competitive pricing, and underwriting. What’s more, they must have some type of “differentiator” that makes their product stand out from others in the market.
The objective of the 2011 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.
This year’s report includes data from 19 different carriers and 25 different plans. The report includes:
- General market information and results from respondents
- Detailed product features and benefits
- Underwriting guidelines
- Rates and premium structure
- Distribution and commission information
[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 $3,000. To order your copy, simply email us at info@eastbridge.com or call (860) 676-9633. Published 2011
Table of Contents
1. Executive Summary
A. Report Objectives
B. Key Findings
C. Recommendations
D. Methodology
2. The VSTD Market and Carrier Results
A. The VSTD Market
B. VSTD Sales
C. Major Competitors
D. Participation Rates
3. Product Details by Carrier
A. General Information
1. Definition of Voluntary
2. Standalone vs. Core/Buy-up Option
3. Employer-Paid STD Plan
B. Product
1. Platform
2. Minimum/Maximum Benefit Amounts
3. Flat Benefit/Percent of Salary
4. Maximum Percent of Salary Replacement
5. On- and/or Off-the-Job Benefits
6. Benefit Period Options
7. Definition of Disability
8. Covered Earnings Definition
9. Elimination Periods
10. Pre-Existing Exclusions
11. Limited Benefits for Pre-Existing Conditions
12. Waiver of Pre-Existing for Takeovers
13. Coverage for Mental/Nervous Disorders
14. Coverage for Pregnancy
15. Coverage for Elective or Cosmetic Surgery
16. Exclusions
17. Coverage for Partial Disabilities
18. Coordination of Benefits
19. Waiver of Premium
20. Waiver/Continuation of Coverage for Layoffs
21. Rehabilitation Benefits
22. Other Benefits/Features
23. Optional Benefits or Riders
C. Employee Choices
1. Renewability
2. Conversion/Portability Provision
3. Multiple Plan Designs within Same Group
4. Differentiating Product Features
D. Underwriting
1. Account-Level Underwriting
2. Unacceptable Accounts
3. Employee Eligibility Rules
4. Guaranteed Issue
5. Simplified Issue
6. Full Medical Underwriting
7. Open Enrollment Options
8. Increasing Coverage
9. Renewal Underwriting
E. Costs
1. Published Rates vs. Census Rates
2. Quotes on Virgin Cases
3. Age Bands vs. Composite Rate
4. Rate Classes
5. Rate Variations
6. Rate Guarantees
7. Policy Fee
8. Rate Comparisons
9. Buy-up Rates
F. Distribution and Commissions
1. Base Commission Rates
2. Reduction in Commissions for Takeovers
3. Incentives for VSTD Sales
G. Enrollment
1. Method Used
2. Personalized Enrollment Forms
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