2. Fortify Insurance Group
presents
Will The True Own Occ Please Stand Up!
A rap about the top definition of
disability available in the market

3. Who Is Fortify
Specialists in Income Protection and Disability Insurance for Business Continuation
Founded in 2008
Licensed in all US states
100% Brokerage General Agency
We are Underwriters & Advocates

4. What Carriers Do We Represent?

5. Ways A Disability Policy Pays
A Disability Income Insurance policy pays 3 different ways …
Total Disability
Partial or Residual Disability
Catastrophic or Presumptive Disability

6. Three most common Definitions of Total Disability
24 Month Own Occ followed by Reasonable Occ
Modified Own Occ (Own Occ Not Working)
True Own Occ

7. What does True Own Occ provide?
It’s like having a backup car parked in your garage
It’s a sense of security that you will have income if you are totally disabled and not able to work.

8. What does True Own Occ provide?
Confidence
No offsets or reductions of benefits for Total Disability
No crazy hoops to jump through
No additional financial due diligence
Take the power aware from the carrier to force you back to work

9. What does True Own Occ provide?
It’s not just for surgeons.
Educated
Motivated
Affluent

10. Example #1 – Corporate Executive
You are a Corporate Executive making 250k per year before suffering a heart attack. After having surgery your doctor decides that you should not return to work due to the high stress levels and your personal risk of having another heart attack. You own a 10k per month IDI policy and though you begin teaching at a local Business School your policy continues to pay 10k per month.

11. Example #1(a) – Corporate Executive
A Corporate Executive making 250k per year before suffering a heart attack with a 10k per month IDI policy. Though still disabled from his prior job he begins teaching at a local Business School where he is now making 100k per year. Because he has a Modified Own Occ defintion of disability the benefits are paid under the Residual Disability Rider as follows… 100k / 250k = 40% (60% loss of income) Monthly benefits paid = $6,000/mth Total Annual Income during Disability=$172k

12. Example #2 – Engineer
You have been a successful Structural Engineer making 250k per year for the last 10 years when you decide to realize your life-long dream of becoming the next Evil Knievel. After training for months you finally have your first show scheduled in Las Vegas to jump 15 Greyhound buses to best your childhood idol. Unfortunately you panic at the beginning of the jump, slam your motorcycle into the side of the first school bus crushing your collarbone, breaking several ribs and shattering your hip. This is the end of your career as a Motorcycle DareDevil but luckily you kept the disability policy you purchased when you were an Engineer and you receive $11,450 per month.

13. Example #3 – Surgeon
You are a successful surgeon making 250k per year and you develop a tremor in your right hand and are no longer able to perform surgery. You continue to work as a Physician join a practice specializing in Internal Medicine making 125k per year. In addition you own several apartment buildings netting you 125k per year in rental income. You have an individual Disability Insurance policy for 10k per month but you have been advised by the insurance carrier that your claim has been denied.

14. Example #4 – NeuroSurgeon

15. Protecting Income Is Part of the Plan

16. People are living longer.
Why Now Is the Time for IDI
People are living longer.
80% 40
-27%
-29%
-32%
-40
-48%
-73%
-80
Cardiovascular
Hypertension
All Four
Heart Disease
Diabetes
Source: National Underwriter, May 2002; The JHA Disability Fact Book – 2003/2004 Edition – Need for Disability Insurance 16

17. But we are also disabled longer.
Why Now Is the Time for IDI
But we are also disabled longer.
80%
+70% 40
+55%
+44%
+36%
+36%
-27%
-29%
-32%
-40
-48%
-73%
-80
Cardiovascular
Hypertension
All Four
Heart Disease
Diabetes
Source: National Underwriter, May 2002; The JHA Disability Fact Book – 2003/2004 Edition – Need for Disability Insurance 17

18. Average Length of Long-Term Disability Carrier Claim
Condition
Length of Claim
Fibromyalgia
100 months
Mental Disorders
99 months
Aids/HIV
98 months
Cancer
81 months
Circulatory Disease
76 months
Nervous System Disease
69 months
Injury
64 months
Respiratory Disease
45 months
JHA 2004 Disability Rate Study & Risk Management Survey (74% Market Share)

19. I’m all set … I have coverage through work
How would you and your family be affected if you became injured or sick and could no longer work?
I’m all set … I have coverage through work
That’s great … do you know what the definition of Total Disability is?
That’s great … do you know how much of your income is covered?

20. Can you live on 42% of your income?
Is employer-provided group disability insurance enough?
Chart based on $5,000 gross monthly income ($60,000 annually), with 60% Group Long Term Disability program, assuming a 30% tax bracket for Federal, State and FICA.

26. Perspective from Court about MetLife’s Announcement that they are Exiting the Individual Disability Market

27. Thank You!