The graph below represents the results of over 400 human resource professionals
when asked how many lost work days their employees have on an annual
basis. 43% of employers with +500 employees “Do Not Know” how many days
their employees are absent.
Average
Number of Unscheduled
Absences by Employee Size |
| |
| |
2-99
Employees |
100-499
Employees |
500+
Employees |
| < 3 days |
14% |
8% |
3% |
| 3-5 days |
34% |
32% |
19% |
| 6-7 days |
14% |
16% |
17% |
| 8-10 days |
7% |
9% |
12% |
| > 10 days |
4% |
4% |
5% |
| Do Not Know |
27% |
32% |
43% |
| Source: 2005
JHA/EBN Absence Management Survey |
|
Paycheck Plus, a new combination worksite product offered by Jefferson Pilot
Financial Life Insurance Company, is a well researched attempt at finding the
first-time buyer of disability insurance from both an employer and employee
perspective. Paycheck Plus combines STD, LTD, Life and AD&D into one
payroll deducted product. The program was developed for first-time buyers
of ancillary benefits in the under 200 employee market.
The plan designs are straightforward. There is only 1 option for each line
of coverage making it easier for employees to understand what they are
purchasing. The choice becomes a simple yes or no, rather than getting
bogged down in the details of how much coverage to choose. The STD
benefit is 60% to $250 of weekly income for 13 weeks following a 15 day
elimination period. The LTD benefit is 60% to a $1,000 monthly income
maximum for up to 5 years with a 90 day elimination period. And a $20,000
Term Life and AD&D benefit rounds out the package. The plan designs
cannot be altered; therefore, a first-time buyer is the most likely candidate
to purchase this product versus one that is looking to replace voluntary
coverage they may already have.
more...
|
Most people in the disability industry are aware that UnumProvident entered
into a settlement agreement with insurance departments of 48 states in November
2004. California and Montana did not participate in the settlement at that
time. Recently, the company reached an agreement with California.
The California Insurance Commissioner is implementing provisions from the
UnumProvident agreement across the disability insurance industry in his state.
If he succeeds, the industry will be significantly impacted.
The attached article discusses the settlement and the potential bearing it could
have on carriers offering group long-term and short-term disability and
individual disability insurance products.
more...
|
Given the amount of business that is renewed or written with a January 1st
effective date, we thought it would be timely to revisit the importance of BME
in the sales process.
Basic Monthly Earnings Definition (BME) – There is nothing basic about this
provision!
The very name Basic Monthly Earnings makes you think the provision is
unimportant and easy to understand. If you are involved in the underwriting or
claims management area, you know nothing could be farther from the truth. Ask
someone what their BME is and you are likely to get a variety of answers that
may or may not include commissions, bonuses, deferred compensation, or other
extraordinary income items. Rest assured at claim time, claimants assume that
everything should be included.
more...
|