1. Disability Income Insurance
Catastrophic Disability Benefit Rider (CAT)
(Available at an Additional Cost)
For Producer Use Only. Not For Use with The Public.
C:57865

2. Why the Catastrophic Benefit Disability Rider?
MassMutual typically replaces, or participates in replacing, between 60% and 75% of a person’s income depending on tax status.
The Catastrophic Disability Benefit Rider is designed to replace the remaining 25% to 40% of income, subject to a rider maximum of $8,000.
For Producer Information Only. Not For Use With Clients.

3. For Producer Information Only. Not For Use With Clients.
What Does It Cover?
Presumptive Disability - covered by both the base contract and the rider
Severe Cognitive Impairment (Alzheimer’s, dementia, etc.) plus the definition of Total Disability on the base contract
Cannot perform 2 out of 6 Activities of Daily Living (ADLs – bathing, continence, dressing, eating, toileting, transferring ) plus the definition of Total Disability on the base contract.
For Producer Information Only. Not For Use With Clients.

4. Plan Design & Underwriting
Insures up to 100% of income (at time of original policy issue), subject to a maximum of $8,000
Available under all base benefit periods (base can be less than, greater than or equal to the CAT benefit period subject to underwriting approval)
Waiting period must match base
Can increase CAT rider with full underwriting
can use Right to Apply
cannot use FIO/AABI
For Producer Information Only. Not For Use With Clients.

5. Plan Design & Underwriting
Cannot be added to a RetireGuard Stand Alone policy
Is available with the following new policies:
Radius® 04 Series
MaxElect
FlexElect Multi-Life
FlexElect Individual
Can be added to the following in force policies:
Radius 01Series
Radius 98 Series
FlexElect Multi-life
For Producer Information Only. Not For Use With Clients.

6. Plan Design & Underwriting
The CAT rider will not be offered to those clients who are currently over insured based on income.
We will, however, issue the CAT rider to those clients who are over our maximum I&P limits, not to exceed $8,000 per month.
Let’s look at a few examples!
For Producer Information Only. Not For Use With Clients.

7. Issuing CAT As New Business - Example 1
Employee with annual salary $125,000 ($10,417 a month), 4A occupation class
Replacement Ratio 60% (client has group coverage and is paying for base policy and CAT coverage)
$125,000 x .60 = $75,000 or $6,250 month
Maximum I&P is $20,000, choose the lesser of $20,000 or $6,250
Monthly income $10,417 - $6,250=$4,167
$4,167 is less than $8,000
CAT Rider = $4,167
For Producer Information Only. Not For Use With Clients.

8. Issuing CAT As New Business – Example 2
Business owner annual earned income of $80,000 or $6,667 month, 3A occupation
No group LTD and client is paying for base and CAT so we will use “Non-Taxable Issue Limit Chart-No Group”
Table Issue Limit is $4,000
Maximum Issue Limit is $10,000, choose lesser so we will use $4,000
$6,667 - $4,000 = $2,667
$2,667 is less than $8,000
CAT Rider = $2,667
For Producer Information Only. Not For Use With Clients.

9. Adding CAT to In Force Business
Determine client’s monthly earned income
Determine total in force coverage from all sources (MM and non-MM)
Is client over insured based on income?
If Yes – CAT is not available
If No – Continue
Determine if client’s total in force coverage exceeds our Maximum I&P limits
If No – Continue to Step 6
If Yes – new CAT maximum established (step 5)
New CAT Maximum = $8,000 minus amount over Maximum I&P
CAT = Monthly Income minus greater of:
Maximum coverage available based Maximum I&P, or
Total in force coverage subject to CAT maximum (lesser of $8,000 or new CAT maximum)
For Producer Information Only. Not For Use With Clients.

10. Adding CAT to In Force Business-Example 1
Earned income annual salary $360,000, $30,000 a month, 3P occupation class
Total in force coverage is $12,000
Client is NOT over insured based on income (60% Replacement Ratio = $18,000)
Client IS over Maximum I&P of $10,000 ($2,000 over insured)
New CAT Maximum ($8,000-$2,000)=$6,000
$30,000 -$12,000 = $18,000, subject to $6,000 new CAT maximum
CAT Rider = $6,000
For Producer Information Only. Not For Use With Clients.

11. Adding CAT to In Force Business – Example 2
Insured’s earned annual income is $120,000, $10,000 a month, 4A occupation class
Total in force coverage is $5,000
Client is NOT over insured based on income ($5,640 available - No Group, Non-Taxable Table)
Client is NOT over Maximum I&P Limit ($15,000 limit)
$10,000 - $5,640 = $4,360
CAT Rider = $4,360
For Producer Information Only. Not For Use With Clients.

12. Adding Cat to In Force Business – Example 3
Insured has earned annual income of $120,000, $10,000 a month
Total in force coverage is $8,000
Insured is over insured based on income ($5,640 available – No Group, Non-Taxable table)
CAT is not available
For Producer Information Only. Not For Use With Clients.

13. Positioning CAT in the Market
Aligns with consumer perception of being irreversibly incapacitated and in need of catastrophic coverage
For certain critical disabilities, enables a higher income replacement when most needed
Catastrophic Rider costs, on average, about 8-10% of the base “total disability only” premium.
Presumptive disability covered through both base and CAT rider.
This rider should be quoted on all new business!!!!
For Producer Information Only. Not For Use With Clients.