MetLife INCOME GUARD CALIFORNIA SM Understanding MetLife’s Individual Disability Insurance For...

MetLife INCOME GUARD CALIFORNIASM

Understanding MetLife’s Individual Disability Insurance

For Producer Use Only – Not For Use With the General Public

MetLife Individual Disability Insurance

MetLife Income Guard California SM





Today’s Agenda

Sales Ideas2

1 Individual Income Products

MetLife Income Guard CaliforniaSM

Specialty Base

Optional Riders




In short…

Most people who rely on their income

Who are the Ideal DI Clients?

• Ages 25-50

• Incomes of $80,000 or more

• Recent Life Insurance clients

• Medical and Dental professionals

• Younger white collar executives

– Those with current coverage & those without

• Don’t let current coverage stop you from asking since it’s usually not enough!




Non-Medical Occupations – Best Risk

Occ Classes 6S

Small Animal Vet

Pharmacist

Executive ($80k+)

Computer Professional

Attorney

Scientist/Engineer

Accountant

Architect




6S – Attorney/Executive – Including the Your Usual Occupation Rider

Industry Premium Comparison

Age MetLife Income Guard

California

GuardianClass 6

Principal 5A-Select

AmeritasClass 6A

35 – Male $1,905 $2,177 $2,197 $2,157

40 - Male $2,517 $2,667 $2,951 $2,704

45 - Male $3,202 $3,407 $3,693 $3,359

35 - Female $2,760 $3,284 $3,268 $3,830

40 - Female $3,490 $3,872 $4,082 $4,297

45 - Female $4,176 $4,639 $4,790 $5,014

Assumptions: 90 Day Elimination Period, To Age 67 Maximum Benefit Period, $5,000 Monthly Benefit Amount, Your Usual Occupation, Partial Plus Extended Rider, GIO

Less or within 5%

5 – 10% higher

More than 10% higher

MetLife Income Guard California rates are:

* The information in this comparison is accurate as of September 8, 2015. Policy provisions, rates and underwriting rules may vary. Refer to actual policies, applications, producer guides, premium rate schedules, and other information from the issuing carrier for their actual policy provisions, rates, and underwriting requirements.




6S – Small Animal Veterinarian



California

GuardianClass 5M

Principal Class 5A

AmeritasClass 5M

35 – Male $1,905 $2,763 $2,471 $3,015

40 - Male $2,517 $3,389 $3,320 $3,912

45 - Male $3,202 $4,332 $4,154 $4,916

35 - Female $2,760 $4,170 $3,677 $5,237

40 - Female $3,490 $4,923 $4,592 $6,132

45 - Female $4,176 $5,901 $5,389 $6,979

Assumptions: 90 Day Elimination Period, To Age 67 Max. Benefit Period, $5,000 Monthly Benefit AmountYour Usual Occupation, Partial Plus Extended Rider, GIO

Less or within 5%

5 – 10% higher


MetLife Income Guard California rates are:





Medical Occupations – Best Class

Occ Classes 6M

Pediatricians

Internal Medicine

Neurologist

Rheumatologist

General/Family Practice

Oncologist

Allergist

Physiatrist




6M – Physician



California

GuardianClass 5M

Principal Class 5A-M

AmeritasClass 6M

35 – Male $2,137 $2,763 $2,471 $2,822

40 - Male $2,816 $3,389 $3,320 $3,659

45 - Male $3,572 $4,332 $4,154 $4,598

35 - Female $3,013 $4,170 $3,677 $4,896

40 - Female $3,804 $4,923 $4,592 $5,734

45 - Female $4,538 $5,901 $5,389 $6,525

Less or within 5%

5 – 10% higher


MetLife Income Guard California rates are:Assumptions: 90 Day EP, To Age 67 Max. Benefit Period, $5,000/mo. benefit, Partial w/Recovery, GIOMetLife Income Guard Includes: Specialty Your Usual Occ language, Extended Partial Plus ,GIO6M Physicians include: Pediatrician, Oncologist, Neurologist, Physiatrist (AAPM & R board certified)





Not all Medical Occupations are classified the same across competitors For a complete list of Medical Occ Classes, please consult the Reference Manual

Specialty MetLife Guardian Principal Standard

Allergist 6M 4M 5A-M 4P

Family Practice 6M 4M 5A-M 4P

Gastroenterologist 6M 5M 5A-M 4P

General Practice 6M 4M 5A-M 4P

Gerontologist 6M - - -

Hematologist 6M 5M 5A-M 4P

Internal medicine 6M 4M 5A-M 4P

Neonatologist 6M 5M 5A-M 4P

Neurologist 6M 4M 5A-M 4P

Nephrologist 6M 5M 5A-M 4P

Oncologist 6M 5M 5A-M 4P

Physiatrist (pain management) 6M 4M 5A-M 4P

Pediatrician 6M 5M 5A-M 4P

Pulmonologist 6M 5M 5A-M 4P

Rheumatologist 6M 5M 5A-M 4P

Medical Occupation Classifications

Faas, Edward





Income Protection Base Policies

Regular Base

Specialty Base




Noncancelable

Guaranteed Renewable to age 67 or 5 policy years if later

Issue Ages 18-70

No Cost riders included – Capital Sum2, Presumptive, Automatic Increase Benefit3

Term Premium option (TPC Rider)

Medical/Business Professionals

Individual

Association / AMA / Business Affinity

Individually Underwritten MultiLife1

MetLife Income Guard CaliforniaSM

Contracts

Max Benefit Periods

=2, 5, 10 Years to Age 65, 67 or 70

Elimination Periods

=90, 180, and 365 Days

Markets

1. MetLife Income Guard California is not available for Guaranteed Standard Issue (GSI) or Excess GSI. Salary Saver will continue to be available in these markets2. Capital Sum rider pays an additional lump sum benefit for the loss of one hand, one foot, or the entire site in one eye if injured.3. Automatic Increase Benefit (AIB) rider allows benefits to increase by 5% of the original monthly total disability benefit on each of the first five policy anniversaries. As benefits

increase your premium will also increase based on the benefit increase at then insured’s attained age.




Key Definitions

*Usual Occupation is not necessarily limited to the specific job you performed prior to disability.

Total Disability means that as a result of Injury or Sickness, You are, during the Usual Occupation Period, unable to perform with reasonable continuity the substantial and material acts necessary to pursue your Usual Occupation in the usual or customary way and you choose not to work in any occupation.

Regular Base Benefit Specialty Base BenefitYour Usual Occupation

Rider (YUO)

Available to All OCC classes Medical only6M, 5M, 5I, 5D, 4M

Non Medical6S and 5A

Usual Occupation Period

Limited:2A, A, BFull: 3A and higher

Full Full

Specialty Language NA Yes NA

Usual Occupation* means any employment, business, trade or profession and the substantial and material acts of the occupation that You were regularly performing when Your Disability began.




Partial Rider Options

A Partial rider is required with all MetLife Income Guard California Policies

Partial Disability Rider Partial Disability Plus Extended Partial Disability Plus

• Pays a benefit if a partial disability causes the insured to lose 20% or more of their prior earnings

• Pays 50% monthly benefit paid for six months

• Not Available with Specialty Base Policies

• Pays a benefit up to 36 months if a partial disability causes the insured to lose 20% or more of their prior earnings

• Minimum 50% monthly benefit paid for 6 months

• Months 7-36 benefit will be a percentage of income loss

• Available with Specialty Base

• Pays a benefit up to maximum benefit period, if a partial disability causes the insured to lose 20% or more earnings

• Includes Recovery for the maximum benefit period

• Minimum 50% monthly benefit paid for six months. Months 7 + benefit will be a percentage of income loss

• Recommended with Specialty Base

If the insured chooses to return to work in their usual occupation, they will not be considered totally disabled, but may qualify for benefits under one of these Partial riders




MetLife Income Guard California Optional Rider Categories

While clients are healthy and working

While clients are disabled




Options to Consider if Your Concern is Riders while Healthy and Working

Automatic Increase Benefit (AIB)

Guaranteed Insurability Option (GIO) Life Event

• Issue Ages: 18-45

• While healthy, benefits automatically increase annually by 5% for five years

• Can be renewed for an additional 5 years


• Allows the purchase of additional benefits without medical underwriting

• Includes an advanced option benefit


• The insured has a one-time option to increase coverage without medical underwriting if they receive a promotion, get married or have children




Options to Consider if Your Concern is Riders while Healthy and Working

Refund of Premium (ROP)

Term Premium Conversion (TPC)


• MetLife will refund 50% of the premiums ever 5 years, less any claims or experience refunds paid


• The insured can elect to pay for all or part of the Total Disability benefit (and select optional benefits) with Term Premium

• Term Premium is premium that changes at the end of the Term Premium period

• If Term portion is not converted prior to end of Term Period, the premium will automatically adjust each year until age 56




Options to Consider if Your Concern is While Clients are Disabled

COBRA Premium Reimbursement Catastrophic (CAT) Social Insurance

Substitute (SIS)


• The insured can be reimbursed for COBRA premiums paid if they lose their job due to total disability.


• Pays an additional monthly benefit on top of the monthly benefit for total disability if the insured meets the criteria for a catastrophic disability.


• Pays an additional benefit during a disability. After the 1st year, this benefit will end if legislated benefits are received

• Mandatory for occupational classes 2A, A, and B if applying for the maximum available benefit.




Options to Consider if Your Concern is While Clients are Disabled

COLA 3% Simple COLA 3% Compound COLA 0-10% CPI-U


• If disabled for more than one year, monthly benefits increase by 3% simple interest


• If disabled for more than one year, monthly benefits increase 3% compounded annually


• If disabled for more than one year, monthly benefits are adjusted between 0 and 10% annually based on the CPI-U




MetLife Income Guard California

Premium Discount

Opportunities

Note:Discounts subject to Home Office approval.Discount percentages and stackable options only apply to MetLife Income Guard




Discount Type Discount How to Qualify

Association Discount1 10%2

Discounts available to individuals who are members of a qualifying association, or affiliated with an approved alumni, fraternal, trade group. Discount varies based on type of association.

Business Affinity Discount1 10%3

Discounts available to individuals who work at a common worksite if they apply together as a group. The group may include 1099 contractors as well as business owners and W2 employees.

Employer Sponsored MultiLife1

Discount-Voluntary Benefit (Employee Pay) 15%Discount available when the employer makes coverage available to eligible employees on a voluntary basis. The employee pays the premiums.

Employer Sponsored MultiLife 1

Discount-Employer Funded (Employer Pay) 20% Discount available when the employer makes coverage available to eligible employees and the premiums are paid by the employer.

Multi-Policy Discount 5%Discounts available to individuals who purchase a qualifying life insurance policy from MetLife less than 12 months before applying for a disability policy.

MIGCA’s Available Discounts

1. Group discounts require 3 or more applications 2. 5% discount available to medical/physician associations. Not available to dental associations 3. 5% discount for dental affinity groups




How to Qualify for a Discount

*5% discounts for dental affinity and medical/physician associations

Gina Rutledge

add California to MIG name




Maximize potential premium savings with these stackable combinations

15%

Association 10%

Multi-Policy 5%

Notes: 1. Discounts require Home Office preapproval or validation. 2. 5% Multi-Policy discount available to client with an issued qualified MetLife Life insurance policy.

Sex Distinct Rates Unisex Rates




Transition RulesAugust 31 look back – December 31 look ahead

• Applications in house for Salary Saver can be transferred to a MetLife Income Guard California (MIGCA) policy. A new IDIP12-10-CA application will be needed. We cannot backdate prior to August 31.

• Look back – Any Salary Saver policy issued August 31 forward can be reissued as a MIGCA policy. A new IDIP12-10-CA application will be needed.

• Salary Saver will be sunset for individual and MultiLife business as of December 31, 2015. Applications should be in house (in good order) on December 31, 2015




New Product/New Application

As MetLife Income Guard California is a new policy form with a corresponding New Business application (Forms IDIAPP12-01-CA and IDIAPP12-02-CA).

Exchanging a pending or recently issued Salary Saver for a MetLife Income Guard California policy will require a fully completed and signed MetLife Income Guard California application.

To ensure the accuracy of the policy being issued, an updated illustration and new application should be submitted with any request to exchange or reissue from Salary Saver to MetLife Income Guard California.




For cases pending in Underwriting

• If you want to change to a MetLife Income Guard California, please advise your case manager and please submit an updated illustration along with a completed and signed MetLife Income Guard California application.

• If we do not receive the new updated illustration and application by the time the case is ready to issue, then underwriting will issue the case as Salary Saver.

• If you want to continue your case as a Salary Saver, then no further action is required.




For a Recently Issued Policy:

• You may request a reissue of a recently issued Salary Saver to a MetLife Income Guard California policy. This will generally be done with no additional underwriting.

• You will need to submit an updated illustration for MetLife Income Guard California as well as a fully completed and signed MetLife Income Guard application.

• Please submit these requests to our reissues mailbox at IDI [email protected], or to your case manager.

– if the original policy was issued and placed after August 31, 2015: • Can exchange as a reissue without any additional underwriting. Will

reissue at the original effective date of the policy• We will require that the original policy be returned to the home office• If the original policy was issued without advance premium, the placing

premium must be paid before the reissue will be complete.• Any compensation paid to the producer on the Salary Saver will be

reversed and new compensation on the MetLife Income Guard California policy will be paid.

– Salary Saver policies issued and placed before August 31, 2015 are not be eligible for an exchange or reissue to a MetLife Income Guard California policy.




For cases that have been quoted as Salary Saver but not yet submitted to underwriting:

We will continue to accept Salary Saver applications until December 31, 2015– During this transition period we can continue to accept applications for Salary

Saver and continue to issue Salary Saver policies.– If you want to proceed with Salary Saver, simply submit the application in good

order as you normally would and let your case manager know that you want to issue as Salary Saver. Good order means a fully completed application with all questions answered and signatures provided.

Any Application for Salary Saver must be received in good order in Underwriting on or before December 31, 2015. Any application for Salary Saver received after this date will be returned.




Specifics Appendix




Total Disability – Regular Base

*Usual Occupation is not necessarily limited to the specific job you performed prior to disability.

Total Disability or Totally Disabled means that as a result of Injury or Sickness, You are, during the Usual Occupation Period,

• Unable to perform with reasonable continuity the substantial and material acts necessary to pursue Your Usual Occupation* in the usual or customary way, and

• You choose not to work in any occupation

If you choose to work in your usual occupation, you will not be considered Totally Disabled under the policy, but you may qualify for Partial Disability benefits under a rider included with your policy.

MIGCA Definitions




Total Disability – Regular Base

After the Usual Occupation Period Unable to engage with reasonable continuity in any occupation in which You could reasonably be expected to perform satisfactorily in light of Your age, education, training, experience, station in life, and physical and mental capacity, and You choose not to work in any occupation that exists within any of the following locations

• A reasonable distance or travel time from Your residence in light of the commuting practices of Your community; or

• A distance travel time equivalent to the distance or travel time You traveled to work before becoming Disabled; or

• The regional labor market, if You reside or resided prior to becoming Disabled in a metropolitan area.

MIGCA Definitions




Usual Occupation – Regular Base

Usual Occupation means any employment, business, trade or profession and the substantial and material acts of the occupation that You were regularly performing when Your Disability began. Usual Occupation is not necessarily limited to the specific job You performed.

To determine the substantial and material acts that are necessary to pursue Your Usual Occupation,

• We will first look at the specific duties required by Your job.

• If You are unable to perform one or more of these duties with reasonable continuity, We will then determine whether those duties are customarily required of other individuals engaged in Your Usual Occupation.

• If any specific, material duties required of You by Your job differ from the material duties customarily required of other individuals engaged in Your Usual Occupation, then We will not consider those duties in determining the substantial and material acts that are necessary to pursue Your Usual Occupation.

MIGCA Definitions




Total Disability – Specialty Base

Total Disability or Totally Disabled means that as a result of Injury or Sickness, You are unable to perform with reasonable continuity the substantial and material acts necessary to pursue Your Usual Occupation and You are not working in your Usual Occupation.

If you choose to work in your usual occupation, you will not be considered Totally Disabled under the policy, but you may qualify for Partial Disability benefits under a rider included with your policy.

MIGCA Definitions




Usual Occupation – Specialty Base

Usual Occupation means any employment, business, trade or profession and the substantial and material acts of the occupation that You were regularly performing when Your Disability began. Usual Occupation is not necessarily limited to the specific job You performing. If the duties You were performing when Your Disability began are those of a professionally recognized specialty (or specialties if more than one) in medicine or dentistry. We will consider such duties when determining You Usual Occupation.

To determine the substantial and material acts that are necessary to pursue Your Usual Occupation,

• We will first look at the specific duties required by Your job.

• If You are unable to perform one or more of these duties with reasonable continuity, We will then determine whether those duties are customarily required of other individuals engaged in Your Usual Occupation.

• If any specific, material duties required of You by Your job differ from the material duties customarily required of other individuals engaged in Your Usual Occupation, then We will not consider those duties in determining the substantial and material acts that are necessary to pursue Your Usual Occupation.

MIGCA Definitions




Metropolitan Life Insurance CompanyNew York, NY 10166metlife.com

1505-101216 CS BDDI98609© 2015 METLIFE, INC. L0915437753[0916][CA] PEANUTS 2015 © Peanuts Worldwide

Disability insurance is issued by Metropolitan Life Insurance Company, New York, NY 10166. All policies, riders and provisions may not be available at all issue ages and to all occupational classes.

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