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Fortify Insurance Group

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Presentation on theme: "Fortify Insurance Group"— Presentation transcript:

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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.

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

27 Thank You!


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