1. Voluntary Income Protection Program
ABC Company’s
Voluntary Income Protection Program
Note to producer: This seminar presentation helps you speak with employees about their employer’s Voluntary Income Protection program. Insert the employer’s name and your name on this slide.
Please be sure to add your rep or agency disclosure to the last slide if you have one.
After appropriate welcome and introductions, say:
I’m happy to be with you today to discuss a new benefit offering that is being made available to you by (name of the employer). It is called a Voluntary Income Protection Program.
What is voluntary income protection? Briefly, it is a program under which you can obtain – at a significant discount – disability insurance protection for your income. It is a way to replace a significant portion of your monthly income in the event of a serious sickness or injury.
John Q. Agent
Agency Name

2. Income Makes Your Goals Possible
Building Wealth
Expenses of Daily Living
Earned Income
Surplus
Why is income protection important to you and your family?
Income protection is important because your income is important. Your earned income supports your lifestyle and helps determine your standard of living.
We all have expenses of daily living that must be paid on a month-to-month basis. Other expenses may be “extras”, which add to your quality of life.
Your monthly income goes first, of course, to supporting your standard of living. Your surplus is what you are able to save and put away toward building your wealth. That is what is needed to achieve many of the future goals you have set for yourself and your family – things like paying off your student loan debt, saving for a college education for your children, travel, or financial independence.

3. Without a Paycheck, Wealth Drains
Goals
Draining Wealth
Deficit
Expenses Continue
Income
Stops
But what will happen if you are too sick or injured to work for an extended period of time? Your earned income will stop altogether, but your expenses of daily living will continue. Although you may be able to eliminate some of your family’s expenses, certain ones like the mortgage or rent, utility bills, food and clothing expenses are unavoidable. And total expenses could actually increase because of greater medical and care-related costs.
Instead of a surplus, you will run a deficit month after month. To make up the deficit you will likely be forced into drawing down the wealth you have worked hard to accumulate.
The likelihood of achieving your family’s financial goals gets smaller and smaller.

4. Leading Causes of Disability
Injuries vs. Illnesses
Leading Causes of Disability
Most people have trouble picturing themselves as “disabled” – and we think, “It won’t happen to me.” One reason is that we associate disability with catastrophic injury — car accidents, serious sports injuries, falls, and the like. These are rare, so we don’t feel vulnerable. It’s difficult for us to imagine ourselves in such a condition – and we would rather not do so. We rationalize: “I am in a low risk occupation. I drive carefully, and I don’t have any dangerous hobbies.
The reality is that most serious disabilities are caused not by injuries, but by illness. This chart shows the top causes of long-term disability claims filed in Only about 10% of claims, the red pie section on the chart, were due to injuries or accidents.
The vast majority, the other 90%, of long-term disability claims (all in various shades of blue) from illnesses. Illness happens to those who are young as well as old. You no doubt have seen, even among relatively young people, conditions such as stroke, cancer and multiple sclerosis (which usually strikes between 20 and 40).
FYI: Top causes of disability include musculoskeletal/connective tissue (lower back pain, arthritis), nervous-system related (Multiple sclerosis epilepsy, Lou Gehrig’s disease, Parkinson’s) MS typically strikes between 20 and 40; heart disease, cancers mental health problems . .
SOURCE: Council for Disability Awareness 2012 Disability Claims Survey

5. How long could you go without an income? How long could you rely on:
How Would You Get By?
How long could you go without an income?
How long could you rely on:
Savings/assets?
Borrowing?
Social Security?
Family or friends?
What if a long term illness or injury prevented you from working? How long could you go without your income? What are your options if you are unable to work?
Can you depend on savings or assets to sustain you for the long term? Is borrowing an option?
Are government programs like Social Security the answer? Given the stringent requirements to qualify for benefits, from only 28 percent of the workers who applied for Social Security disability benefits were approved at the initial claims level. After all appeals only about 45% of claims were ultimately approved — leaving 53% denied.*
Can you, or would you want to, depend on the financial support of family or friends?
Think of the emotional impact, as well as the financial impact that a serious disability can bring.
* Source: Annual Statistical Report on the Social Security Disability Insurance Program, 2011 (released 7/2012) — Outcomes of Applications for Disability Benefits

6. Your Group LTD Coverage for ___% percent of base salary
Your group LTD plan…
Coverage for ___% percent of base salary
Monthly benefit cap: $________
Benefits will be taxable
Limited right to take coverage with you
Note: If the employer doesn’t have a group LTD plan, omit this slide.
If the employer does have a group LTD you must know the details of the
plan, and you must customize this slide by inserting the correct
percentage of plan benefits and the correct monthly benefit cap.
Discuss the details of the employer’s group long term disability plan… stress that it is a good plan that provides a basic level of coverage, but by its very nature group insurance does not do the whole job. This is especially true if the employer is paying the premiums; benefits are obviously taxable in this case. You should demonstrate on a flip chart what impact this will have on after-tax “take-home” benefit.
If you are talking to higher income employees you must demonstrate that the group plan will not cover 60% (say) of their income, due to the monthly benefit cap and the fact that the plan will not cover bonuses or commissions (if in fact this is the case!).

7. Voluntary Disability Income Protection
Supplements other sources of income during disability
Individually-owned coverage -- Portable
Tailored to meet your specific needs
Benefits paid are tax-free*
10% permanent discount on coverage with 3 or more participants
Convenient payroll deduction
To help you more fully protect your income your employer has adopted a Voluntary Income Protection program.
Discuss the benefits of a Voluntary Income Protection program:
Supplements your other sources of income during disability
Individually-owned coverage is portable — You can take it with you each time you change employers
You choose the options on your coverage, so it’s tailored to meet your specific needs (you don’t have to have the same coverage as others in the group)
Benefits paid are tax-free if paid for with after-tax income
10% permanent discount on coverage with three or more participants.
Convenient payroll deduction (Note: Omit this bullet if payroll deduction is not a part of the program.)
*Since you are paying for coverage with after-tax dollars

8. Enrollment Opportunity
Easy Enrollment
Personalized enrollment package
Program & benefits description
Application for insurance
Individual enrollment meetings
Insert dates, times
Contact us
(000)
Describe the steps for the employees to enroll in the VIP program.
Note: Insert the dates and times that you will be holding individual enrollment meetings for employees. Fill in the appropriate telephone number or other contact information.
Take any final questions, reiterate what employees can expect to happen next, and thank them for attending.

9. Protect Your Income Any questions?
Thank the employees for their time. Comment that you look forward to meeting with the attendees to discuss further how a Voluntary Income Protection plan can protect them and their families.

10. Disability insurance products underwritten and issued by the Berkshire Life Insurance Company of America, Pittsfield, MA, 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.
This publication is provided for informational purposes only and should not be considered tax or legal advice. Please contact your tax or legal advisor regarding the tax treatment of the policy and policy benefits. You should consult with your own independent tax and legal advisors regarding your particular set of facts and circumstances. The information provided is not intended or written to be used, and cannot be relied upon, to avoid penalties imposed under the Internal Revenue Code or state and local tax law provisions.
(Rep or Agency disclosure if any)
Pub5879BL-PPT (5/13)
(Expires 05/15)
Please be sure to add your rep or agency disclosure to this page if you have one.
The Guardian Life Insurance Company of America New York, NY 10004