1. Group LTD with Conversion Program
Getting Off on the Right Foot
Group LTD with Conversion Program
Note to Presenter:
This short presentation is intended for use with an institution director with influence on having a Group Conversion Program. It should take about 20 minutes to deliver – no more than 30 minutes.
If you have a rep or agency disclosure, please add it to the last slide.
After introductions, say:
Thanks for letting me come today. I want to talk today about a program that I think will be of great interest and benefit to the students, residents, and fellows in your program.
John Q. Agent
Agency Name

2. Unique Benefit Program
A Unique Disability
Benefit Program for
Your Students, Residents
and Fellows
High quality Group Long Term
Disability (LTD) benefits
during residency/student
years
Opportunity to convert to an
individual disability insurance
policy upon completion
without medical underwriting
We all know just how much your students, residents and fellows have invested to get to where they are now. They’ve got a bright future ahead. However, it’s important for them to protect their income both now and as it grows should they suffer an illness or injury that would prevent them from being able to work.
I want to talk about ensuring that your program participants have high-quality protection during their time as students, residents, or fellows ……
As well as the opportunity that this coverage presents for them to convert it to an individual policy when they leave your program. And, there’s no medical exam required to convert the policy.

3. Advantages Residency Program Lower initial cost during residency
Quality benefit provisions to meet
disability needs
No medical exam necessary
(Choose from this slide, or the next one, depending on what type of program you’re targeting.)
There are a number of advantages to getting disability insurance at this point in their lives.
First, cost is lower while young: Age is an important factor in determining the amount the insurance will cost — And buying at a younger age lets them lock in a lower premium.
Second, our coverage is excellent, including the features and options that today’s young medical professionals want and need.
Another advantage is that there’s no need for a medical exam.

4. Advantages Student Program Lower initial cost during student years
Quality benefit provisions to
meet disability needs
No medical exam necessary
There are a number of advantages to getting disability insurance at this point in their lives.
First, cost is lower while young: Age is an important factor in determining the amount the insurance will cost — And buying at a younger age lets them lock in a lower premium.
Second, our coverage is excellent, including the features and options that today’s young medical professionals want and need.
Another advantage is that there’s no need for a medical exam.

5. Group LTD Plan Features
Definition of disability
Covered disabilities
Elimination period: 90 or 180 days
Benefit duration: up to Social Security’s normal retirement age
Partial disability: 50% offset with earnings
Work incentive benefit
Definition of Disability: For the first 2 years of benefits, covered as a medical resident – thereafter, as a doctor of medicine.
Covered Disabilities:
Accidents and Sickness
24 hour coverage
Maternity
Mental and emotional disorders/alcohol and drug abuse (limitations apply)
Benefit Duration: The benefit duration is how long claimants will continue to receive these payments while they are disabled; benefits may continue for up to Social Security’s normal retirement age.
Partial Disability: 50% offset with earnings. The resident does not have to be totally disabled throughout the elimination period to qualify for benefits. The partially disabled claimant’s benefit payments are then reduced by 50% of his or her current monthly earnings.
Work Incentive for Partial Disability: A partially disabled claimant may receive up to 100% of his or her prior income from all sources for the first 12 months; Guardian will not reduce the benefit by the emloyee’s part-time earnings. If the total exceeds 100%, Guardian will deduct only the excess from the benefit. .

6. Group LTD Plan Design Options
60% or 70% of salary, or
flat $3,000 monthly benefit
(before benefit offsets)
Delayed cost of living
adjustment
Survivor benefit
Benefit Percentage: 60% or 70% of a resident’s basic monthly earnings, or flat $3,000 per month (before benefit offsets). For dental and veterinary students, a flat $2,000 per month.
Delayed Cost of Living Adjustment (COLA) Benefit: Flat 3%, unlimited adjustments, COLA payments beginning on July 1, after 48 monthly payments and every 12 months thereafter.
Survivor Benefits: Payable to a survivor when an insured dies while eligible for benefit payments and after having been disabled for at least 6 months. Benefit is 3 times the amount of the last net monthly payment received (Paid in a lump sum).

7. Group LTD Plan Design Options (cont’d)
Student loan payout benefit*
Additional benefit for severe functional
disabilities, either:
Lump sum benefit** or
Additional monthly benefits
Loan Payout Benefit: Guardian will make regularly scheduled monthly benefits for the repayment of student loans, while the insured remains functionally disabled*, up to a maximum of $100,000. (Higher amounts are available.)
Lump Sum Benefits: Benefit amount payable when we accept proof that an insured individual is functionally disabled*. Benefit payable is $5,000.
Critical disability supplement options
Additional 20% of monthly earning up to $1,000 (available with flat $2,000 option, 60% or 70% salary plan)
Additional 30% of monthly earnings up to $3,000 (available only with 60% or 70% salary plan)
Additional 40% of monthly earnings up to $3,000 (available only with 60% salary plan)
* Functional Disability Definition Applies: Functional disability means that, due to a sickness or injury, an eligible program participant: (a) is unable to perform two or more activities of daily living without continuous assistance; or (b) cognitively impaired and requires verbal cuing to protect him/herself or others.
*Not available in all states.
**Functional Disability Definition applies.

8. Group LTD Advantages Ease of administration –
single long term disability policy issued to
plan holder
Disability claim management services
Option to convert to individual disability
insurance without medical underwriting upon completion of program
We make the administration of the plan simple and easy with a single policy issued to the plan holder. We have excellent claim management services.
And particularly important is the fact that when your (students, residents, or fellows) complete their program, they can convert the coverage to an individual policy that they can take with them wherever they go. No medical exam will be required.

9. Advantages Individual Disability Income Insurance
Simplified underwriting
for individual disability
insurance with no
medical or financial
questions
Guaranteed premiums:
Level
Graded
Coverage is portable
As your program participants complete their program, their busy schedules become even more hectic as they prepare for the next phase. Being able to convert their group LTD to individual coverage that they can take with them is very convenient. Not having to hassle with medical and financial questionnaires and so forth makes it easy and simple.
There are several choices for how the coverage can be paid for. We find that some choose level premiums, that remain the same for that particular amount of protection. Graded premiums permit an individual to begin coverage paying a lower premium and then have the premiums rise later, when their income has grown.
The portability of the coverage is important because your graduates may be heading in so many different directions. And because the policyholder “owns” the policy with individual coverage, they can take the coverage with them even if they change jobs multiple times in the years ahead.

10. Advantages Individual Disability Income Insurance (cont’d)
Coverage cannot be terminated before age 65 and is renewable for life if working full time.
Policy features guaranteed not to change
Includes coverage for total disability
Optional coverage for residual disability
Two other important elements of our coverage are that it is non-cancellable and guaranteed renewable. This means that your policy can’t be terminated, and the coverage is renewable for life if you’re working full-time. You can rest assured that your premium rates will not be changed as long as the premiums are paid on a timely basis.
And the provisions of the policy cannot be changed as long as premiums are paid on a timely basis.
The policy includes coverage for total disability — This is when you’re completely unable to work.
Now sometimes, an illness or injury doesn’t cause a total disability but does limit your ability to work, which results in decreased income. Or you might have suffered a total disability and now you’ve returned to work, but you’re not back at your pre-disability earnings. For situations like these we offer an option for what’s called residual disability.

11. Individual Income Insurance Features
True own occupation definition of total disability
Covered disabilities
Injury or sickness
Incurred on or off
the job
Covered Disabilities:
Injury and Sickness
Disabilities incurred on and off the job
Benefits for disabilities caused by mental and/or substance-related disorders are limited to 2 years during the life of the policy, unless the insured is permanently confined to a hospital for treatment.
Definition of Disability: The policy offers true own occupation coverage to MDs, dentists and veterinarians.

12. Individual Income Insurance Features (cont’d)
Elimination period:
3 months*
6 months, or
One year
Competitive monthly
maximums
Combination of base plus,
SIS, Student Loan Protection and/or FIO
Benefit duration:
2 years
5 years, or
To age 65 (but not longer than the group LTD period) period
Elimination Period Choices: Three months, six months or one year.
The elimination cannot be shorter than the Group LTD contract.
Monthly Maximums:
Maximum monthly indemnity is $4,000 for medical residents (and it can be $5,000 with prior Group approval.) And it’s $2,000 for dental and veterinary students. Monthly indemnity may be a combination of base (at least $200) plus Social Insurance Substitute (SIS), Student Loan Protection, and/or Future Increase Option (FIO).
Benefit Duration:
Read slide.
*But not shorter than the group LTD period

13. Individual Income Insurance Features (cont’d)
Optional riders available:
Partial Disability Benefit
Future Increase Option
Social Insurance Substitute
Option for Student Loan Protection
For more detailed information, as well as exclusions and limitations that may apply to the individual disability income policies, please carefully review the material in your information package.
Due to periodic policy changes, note that the individual conversion policy features and costs discussed today may vary at the actual time of conversion.

14. Thank you for letting me come today for this discussion
Thank you for letting me come today for this discussion. Do you have any questions?
IMPORTANT NOTE TO PRESENTER
This presentation is for the solicitation of the following Group Conversion Programs only:
Medical Residency Programs
Dental Student Programs
Veterinary Student Programs
The presentation may be used when you present the program to the directors of the these programs who are considering the installation of Guardian Group LTD AbilityGuard with the “conversion feature” for their institutions.

15. If you have a rep or agency disclosure, please add it to this slide.
Individual disability insurance products underwritten and issued by the Berkshire Life Insurance Company of America (BLICOA), Pittsfield, MA. BLICOA is a wholly owned stock subsidiary of The Guardian Life Insurance Company of America (Guardian), New York, NY or provided by Guardian. Product provisions and availability may vary by state. Optional riders are available for an additional premium.
The Guardian Group LTD Plan limits the duration of payments for long-term disabilities caused by mental or emotional conditions, or alcohol, or drug abuse. We do not pay benefits for charges relating to a covered person: taking part in any war or act of war (including service in the armed forces); committing a felony or taking part in any riot or other civil disorder; or intentionally injuring themselves or attempting suicide while sane or insane. We do not pay benefits during any period in which a covered person is confined to a correctional facility, an employee is not under the care of a doctor and the employee’s loss of earnings is not solely due to a disability.
This policy provides disability insurance only. It does not provide basic hospital, basic medical or major medical insurance as defined by the New York State Insurance Department. Policy features may vary by state. If the plan is new (not transferred): This LTD plan does not pay charges relating to a pre-existing condition, unless the disability begins after the employee has been insurance for the specified number of months. Please refer to the plan documents for specific time periods. A pre-existing condition includes pregnancy and any condition for which an employee, in the specified period prior to coverage under this plan, consults with a physician, receives treatment, or takes prescribed drugs. GP-I-TD2K-1.0, et al.
Rep or agency disclosure (if any)
Pub4465BL-PPT (06/16)
(Exp. 06/18)
If you have a rep or agency disclosure, please add it to this slide.
The Guardian Life Insurance Company of America New York, NY 10004