Long-Term Disability Riders Can Help Make The Sale
Selling group long-term disability plans on price alone is tough–especially when virtually every LTD plan has the same basic features.
Its the special features that help differentiate a plan from competing proposals. And it is those unique additions, combined with a competitive price, which will help a producer make the sale.
Special features can take the form of product enhancements or options that limit benefits but help manage the cost of a plan.
Some insurers choose to add new features directly into their standard contracts. Others prefer to provide a basic offering, and then allow a policyholder to elect the features they find desirable.
The additions are usually handled in the form of a policy rider–a document that fully describes the features of the plan adjustments and becomes part of the policyholders contract.
LTD insurers use a number of variations to make their offerings more enticing to the market. Weve selected some of the most popular below.
Special Conditions Limitation Rider: In disability policies, it is common to find 12- or 24-month limits on benefit payments for disabilities caused by mental illness, alcoholism and drug abuse. But insurers trying to market unique plans offer a rider that limits other “special conditions” to the same 12- to 24-month time period.
Special conditions might include the mental illness, alcoholism and drug abuse conditions mentioned above as well as chronic fatigue syndrome, fibromyalgia, carpal tunnel syndrome and others.
The result? A lower premium for the employer, and adequate coverage for employees.