Voluntary Short-Term Disability Products
Cost: $3,000; published 2020
Voluntary short-term disability is a mainstay product for any carrier’s voluntary product portfolio, generating more than $1 billion in new sales in 2019 according to the most recent Eastbridge U.S. Voluntary/Worksite Sales Report. Voluntary STD products continue to fill gaps as fewer employers offer traditional employer-paid disability plans to their employees, but new pressure from emerging state disability and paid family medical leave plans on participation and demand presents both a key concern for carriers to monitor and new opportunities for innovation. Some of the topics covered include:
- A market overview for voluntary short-term disability products
- Product structure and benefit specifics
- Scope of coverage and portability options
- Underwriting guidelines and practices
- Costs and commissions
- Product results for 2019
- Product challenges and future trends
This Voluntary Short-Term Disability Products Spotlight™ Report is designed to help carriers stay abreast of current VSTD products available as well as the emerging trends in the marketplace overall. With this data, carriers can better understand how their product compares to the competition.
View Table of Contents
1. Executive Summary
A. Report Objectives
B. Methodology
C. Key Findings
2. Market Overview
A. The Overall Voluntary Short-Term Disability Market
B. Employer Perspective
C. Employee Perspective
D. Broker Perspective
E. Key Competitors
3. Product Details by Carrier
A. Product Structure and Specifics
1. Product Platform
2. Definition of Voluntary for Short-Term Disability
3. Types of VSTD Sold
4. Employer-Paid STD Plan
5. VSTD Plan Changes
6. Minimum/Maximum Benefits
7. Benefit Type
8. Maximum Percent Salary Replacement
9. Off-Job Only or On- and Off-Job Benefits
10.Benefit Period Options
11.Definition of Disability
12.Covered Earnings
13.Elimination Periods
14.Pre-Existing Exclusions
15.Limited Benefits for Pre-Existing Conditions
16.Waiver of Pre-Existing for Takeovers
17.Coverage for Mental and Nervous Disorders
18.Limits on Pregnancy Coverage
19.Coverage for Elective or Cosmetic Surgery
20.Other Exclusions
21.Coverage for Partial Disabilities
22.Coordination with Other Plans/Offsets
23.Non-Integrated Plans
24.Changes due to STAT/PFML
25.Waiver of Premium
26.Waiver of Premium/Continuation of Coverage for Lay-Offs
27.Rehabilitation Benefits
28.Additional/Optional Benefits or Riders
29.Additional No-Cost or Value-Add Services
B. Scope of Coverage and Portability
1. Employee Options at Purchase
2. Renewability
3. Portability and Conversion Options for Group Products
4. Multiple Plan Options Allowed
5. Unique Designs by Industry
6. Product Differentiators
C. Underwriting
1. Account Eligibility Guidelines
2. Ineligible Accounts/Industries
3. Employee Eligibility Guidelines
4. Types of Underwriting Used
5. Guaranteed Issue Guidelines
6. Action if Participation Not Met
7. Simplified Issue Guidelines
8. Simplified Issue Underwriting Questions
9. MIB/APS/Pharmacy Checks
10.Full Underwriting Guidelines
11.Open Enrollment Options
12.Undewriting Requirements for Adding Coverage
13.Renewal Process
D. Costs and Commissions
1. Published or Census Rates
2. Issue-Age or Attained-Age Pricing and Age Bands
3. Composite Rates
4. Rate Classes
5. Rate Differences
6. Rate Guarantees
7. Premium Rate Comparisons
8. Writing-Level Commissions
9. Heaped Commissions Requirements
10.Takeover Commissions Reduction
4. Results and Future Trends
A. 2019 Product Results
1. 2019 VSTD Sales
2. Product Profitability
3. Average Participation Percentage
4. Typical Policyholder and Account Demographics
5. Average Annual Premium Per Employee
6. Persistency/Lapse Rate
7. Takeovers vs. New/Virgin Cases
8. Loss Ratio Results
9. Product Challenges
10. Future Product Trends
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