for producer use only. not for public distribution. supplemental income protection

For Producer Use Only. Not for Public Distribution.

Supplemental Income Protection


Why talk to prospects who have group disability insurance

• Clients with group coverage understand the need for protection, giving you an open door to start a conversation

• Set yourself apart by meeting different needs

• Show your clients that you truly understand their needs and concerns

• Establish yourself as an advisor for current and future financial decisions


Group coverage may not be enough

Do your clients know about the common limitations of group DI coverage?

• Incentive compensation (bonus, commission, etc.) may not be covered, so benefits may be calculated from base salary only

• Employer-paid benefits are generally taxable

• Limited plan options with little customization

• Maximum benefit amounts which can cap the amount of income your client would receive

• Policies are owned by the employer

• Employer could decide to terminate the plan at anytime

• Clients could lose their coverage if they leave their job


Compare group coverage with individually owned policies

Group disability insurance is a valuable benefit. But make sure your clients know what their plan really covers and if it is enough.

Group DI Plans Individual Policies

Incentives covered

Incentive compensation may not be covered.

Incentive compensation typically covered.

Taxable benefits

Employer-paid benefits are generally taxed.

Benefits are generally not taxed if premiums are employee-paid with after-tax dollars.

Customizable coverage

Most employers provide very limited plan options.

Clients can choose the policy provisions that meet their needs.*

Ownership The employer can terminate the plan at any time. Plus, clients could lose their coverage if they leave their job.

Policy belongs to the client, regardless of where they work.

*Subject to Underwriting guidelines. In addition, under MultiLife or GSI arrangements the employer typically determines program terms.


What’s your client’s story?

Initial Income Protection A Basic Approach to DIIntroduce clients to the importance of DI to provide for their loved ones now and have a solid foundation for future financial growth.

Balanced Income ProtectionImportance of Both Life Insurance and DIHelp clients bring their income protection plan into balance with both life and DI so they will be protected in case of premature death or disability.

Supplemental Income ProtectionBridging the Gap Between Group DI and Working IncomeHelp clients recognize the limitations of group DI and make sure their DI coverage will be enough by adding an individual DI policy.


• High income earners who may reach their employer’s coverage maximums or whose incentives would not be covered

• Clients with families who rely on their income

• Clients who may not realize that their protection is inadequate for their needs

When to focus on supplemental income protection


Target market

• Generally 35-50

• Often white collar workers who have access to employer-provided group disability insurance

• Higher income earners


Concerns about their disability coverage

Help clients discuss their concerns

Could you and your family maintain your lifestyle on a fraction of your income? For how long could you get by?

Would your coverage through work cover your bonuses and commissions?

After taxes and maximums, what benefit could you reasonably expect each month? Is it enough for your needs?

Do you think you might change jobs in the future? Do you have any concerns that your employer might decide to stop providing coverage?

• Uncertain whether their group DI policy will be enough to provide for themselves and their loved ones now and for years to come

• Their group DI generally has limitations that might result in much less income protection than they believe they have

• Want to reduce the need to withdraw from other funds in order to keep their plans for future goals intact


Solution

Supplement their Group DI Plan with a personally owned DI policySupplementing their group coverage with individual disability insurance can help clients continue to provide for themselves and their loved ones in case of a disability.


Strategy

Bridge the income gap

Salary Group Benefit

After Taxes

Bonus

PLUS

Regular Income Income While Disabled

After-tax income (salary and bonus) while working

Group benefits typically based on salary only – not bonus

For the following scenarios, regular income means after-tax monthly income (including salary and bonus) while not disabled


Strategy

Bridge the Income Gap

Salary Group Benefit

After Taxes

Bonus

Individual DI can bring

your client’s benefit much

closer to their regular

income.

PLUS

Regular Income

Individual DI Benefit

Income While Disabled

After-tax income (salary and bonus) while working

Group benefits typically based on salary only – not bonus


Let’s see the supplemental income protection story at work

• Married with two young kids

• Successful web designer with steady income and regular bonus ($80,000 salary, plus $40,000 bonus for the past several years)

• Company provides group coverage for 60% of his base salary

Meet Joe


Concern

Make sure his disability coverage would be enough

• Continue to provide for his family, maintain their lifestyle and keep their future goals on track

• Avoid losing a large percentage of his income because his bonus would not be covered

• Protection could not be canceled by his employer or lost if he changes jobs

Joe


Solution

Supplement group coverage with an individually owned policy

• Avoid the risk of having to get by on only a fraction of his income

• More plan options to help truly meet his needs

• Bring his monthly benefit while disabled closer to his regular income while working

Joe


Strategy

With MetLife Income GuardSM

Monthly Benefits

Premiums

Monthly Annual

Joe $3,400 $86 $999

Ask your client to consider:How does budgeting only $86a month compare to possibly receiving only 40% of his current income for an unknown length of time?

What would it cost Joe to purchase an individual disability policy?

Elaine example

This example is hypothetical and for illustrative purposes only. Actual results will vary.

ASSUMPTIONS:MetLife Income Guard

SM. Male, age 35, non-smoker, 5A occupational class. 90-day elimination period (length of time an individual

must be disabled before benefits begin to accrue). Maximum benefit period to age 67. 25% tax bracket.

In this case, premiums are paid in monthly bank draft mode, while the annual premium assumes one payment per year. Paying premiums more than once a year (i.e., monthly or semi-annually) results in annualized premiums greater than the annual premium shown above. Premiums will be level through age 67. MetLife income Guard is not available in all states.

Joe


Benefits to the clients

ConfidenceClients will know they have protected a larger portion of their income

IndependenceIndividual policies are not dependent on their employer’s generosity or their current work situation

CustomizationAn individual policy gives them more options to meet their specific needs

RecoveryAllow them to focus on getting better and back to work


Benefits to you

Relationship builderDeepen the relationship by adding DI to the product mix, demonstrating a desire to help your clients protect themselves and their loved ones

Future salesTo meet changing needs - for example, if employer-paid coverage is canceled, your client changes jobs or the focus shifts to retirement

ReferralsClients could refer you to friends or family members


Reach out to clients and prospects

Tips on messaging & handling objections

Ads for local publications

Grab attention through mail

PostcardLetter

Phone Script


Meet with clients & prospects

Client Brochure

In-depth story with hypothetical example


If this isn’t your client’s story

Profiling Tool

Handy guide to help you match your clients’ concerns with the right story for their needs.


Want to learn more?

Contact your Regional Sales Vice President or call the DI Resource Line at 800-929-1492.


Important information

The information contained in this document is not intended to (and cannot) be used by anyone to avoid IRS penalties. This document supports the promotion and marketing of insurance or other financial products and services. Clients should seek advice based on their particular circumstances from an independent tax advisor since any discussion of taxes is for general informational purposes only and does not purport to be complete or cover every situation.

MetLife, its agents, and representatives may not give legal, tax or accounting advice and this document should not be construed as such. Clients should confer with their qualified legal, tax and accounting advisors as appropriate.

Disability insurance is issued by Metropolitan Life Insurance Company, New York, NY 10166. All policies, riders and provisions may not be available in all states, at all issue ages and to all occupational classes. May 2014

BDDI24005 L0514374137[0515][All States][DC,PR] © 2014 METLIFE, Inc. Peanuts © 2014 Peanuts Worldwide

for producer use only. not for public distribution. supplemental income protection

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