University of Connecticut Health Center Disability Insurance Policy

Conversion Presentation

Presented by Shawn Stuart, RHU

President HSA Consulting, Inc.

888-978-8355shawn@hsac.com

Table of Contents

Protecting Your Most Valuable Asset

The Risk of Disability

What to Look For In a Quality Disability Policy

UCHC Group Student Disability PolicyGuarantee Conversion OptionNext Steps

Protecting your most valuable asset – Your Ability to Earn Income

The average income for a general dentist is $161,410 (May 2010 US Dept. of Labor Bureau of Labor and Statistics)

• 30 Year Career @ $161,410 / Year - $4,842,300• 35 Year Career @ $161,410 / Year - $5,649,350• 40 Year Career @ $161,410 / Year - $6,456,400

Disability Insurance – The Need

If you were unable to work due to sickness or injury how would you pay for:

Your mortgage or rent

Buy food

Pay your utilities

Make your car payment

Make Student Loan payments

Dental Student Educational DebtGrad Year All School Public Private

2009 $163,535 $140,831 $194,665

2010 $177,144 $157,564 $207,824

Dentist A Dentist B Dentist C Dentist D

Amount Borrowed $175,000 $175,000 $200,000 $200,000

Length of Loan (years)

10 15 10 15

Interest Rate 6% 6% 6% 6%

Monthly Payment $1943 $1477 $2,220 $1688

Total paid over repayment period

$233,100 $265,860 $266,400 $303,840

Source: http://www.ada.org/sections/educationAndCareers/pdfs/finplanOSA.pdf

THE RISK OF DISABILITY: COULD IT HAPPEN TO YOU?

• A 20 year-old worker has a 3-in-10 chance of becoming disabled before reaching retirement age. (www.socialsecurity.gov/dibplan)

•The number of workers who become disabled has risen by 35% since 2000 as reported by the Social Security Administration. (www.disabilitycanhappen.org/news/survey_summary.asp)

•Disability is the leading cause of personal bankruptcies. It causes nearly 50% of all mortgage foreclosures, compared to 2% caused by death (Health Affairs, The Policy Journal of Health Sphere, 2 February 2005)

•More than 70% of working Americans do not have enough savings to meet short-term emergencies, let alone long-term disability (National Investment Watch Survey, A.G. Edwards Inc., 2004)

EVERY 4 SECONDS AN INJURY OCCURS IN THE HOME-NATIONAL SAFETY COUNCIL, “INJURY FACTS,” 2007 EDITION

92%

8%

Illness InjuryTHE LEADING CAUSES OF DISABILITY

Major Disablers % of new claims

Musculoskeletal/ connective tissue 22.7%Cancer 13.6%Injuries/Accidents 7.8%Mental/psychiatric 6.5%Neurological 5.7%

2006 Long-Term Disability Claims Review, Council for Disability Awareness

WHAT TO LOOK FORIn a High-Quality Disability Income Insurance

Policy

LOOK FOR THESE BASICS

1. Can’t be canceled by the insurer

2. Pays you a monthly benefit if you are disabled in your own occupation

3. Offers a variety of built-in policy provisions

4. Includes or offers a selection of optional benefits

Renewability Provision:KEEPING PROTECTION IN FORCE

KEY DIFFERENCE!

When your policy is both non-cancelable

and guaranteed renewable, only you can request changes be made or the contract be cancelled.

Total Disability:WHEN BENEFITS ARE PAYABLE

KEY DIFFERENCE!

Due to injury or sickness, you are unable to perform the substantial and material duties of your own-occupation even if you are employed in another occupation. If you have limited your occupation to the performance of a single medical or dental specialty, we will deem your specialty your occupation.

Built-In Basics:POLICY PROVISIONS and DEFINITIONS

» Waiting / Elimination Period: the number of days that must elapse before you are eligible for a benefit

» Waiver of Premium Benefit: no premiums are due while you are receiving payments

» Benefit Period: how long benefits are payable

» Unlimited Mental Disorder/Substance Abuse (MDSA) coverage in the base contract for all occupations

Other Vital Benefits in a High-Quality Disability Plan:

• RESIDUAL DISABILITY BENEFIT RIDER

• COST OF LIVING ADJUSTMENT RIDER

• FUTURE PURCHASE OPTION

• LIFETIME BENEFIT PERIOD

DI Insurance Comparison4th Year Dental Student Age 25

Carrier The Standard MetLife GuardianPolicy Series Protector Platinum Non-Can Series 4401 1400 SeriesBase Benefit $2,500 $2,500 $2,500 Elimination Period 90 90 90Benefit Period Age 67 Age 65 w/ GLB Age 65 w/GLBRenewability Provision Non cancelable to 67 Non cancelable to 65 Non-cancelable to 65

Own Occupation Definition Own occupation for the benefit period

Own Occupation rider- Own occupation for the benefit

period

Own occupation including your specialty for the

benefit period

Residual Benefit 20% loss time, duties or income

20% loss of income, time or duties 15% loss of income

COLA 3% tied to CPI compound 3% simple 3% compoundFuture Purchase Options $7,500 $7,500 in units of $1,000 $7,500 Mental or Nervous Disorders Limitation No Limit No Limit No Limit

AM Best Rating as of 8/2011 A A+ A+

Monthly Premium - Level Male $106.31 / Female $181.20

Male $169.31 / Female $273.78

Male $130.99 / Female $189.49

Monthly Premium - Graded N/A N/A Male $76.31 / Female $100.41

Maximum Income Protection $220,000 $220,000 $220,000

UCHC Student Group Disability Plan Elimination Period: 90 Days

Duration of benefits: SSNRA

Monthly Benefit: $2,000

Disability Definition: 2-Year Student/Any Occupation Thereafter

Mental and Nervous Limitation: 24-Month Lifetime Payment Limitation

Loan Payoff: $100,000

Cost of Living Benefit: 3% Fixed With Unlimited Adjustments

Survivor Benefit 3 X the Last Monthly Benefit

Pre-existing Conditions Limitation: 3 Months Prior/12 Months After

Conversion Privilege: Yes, MD Group Trust Then Individual DDS to Individual Non-Can

Own-Occ

Guarantee Conversion Option

This plan includes a conversion option to convert your disability insurance when you begin your residency training or go practice

Dentists entering residency or practice may covert to an individual Non-can Own-Occ policy up to $2,000

Policy is Guarantee issue without medical underwriting

Insurability

Did you know…….

20-25% of you are NOT insurable!! Are you?

Many “minor” medical conditions can prevent you from obtaining an individual disability income policy.

Common “Issues” that cause you to be Uninsurable

Recent Needle SticksAbnormal Blood ChemistryAbnormal Pap Smear ResultsCertain Prescription MedicationsDiabetesRepetitive Use and Carpal Tunnel Issues Latex Allergies and Other Skin DisordersBack or Neck Treatment by Doctors or ChiropractorsDoctors Appointments for Stress, Anxiety, or Depression

What’s the Next Step?

Your enrollment in the UCONN student group disability plan will end June 30th.

For most of you qualifying for an individual disability policy will be easy. However, each year we see 20-25% of dental students denied coverage due to pre-existing health conditions.

In order to discern whether you should take advantage of the UCONN group conversion plan, it is recommended that ALL graduating dental students make application for disability coverage while they are still at UCONN School of Dental Medicine.

To determine your insurability by making a no obligation disability insurance application or to convert your UCONN School of Dental Medicine group disability plan, please contact Matt Graff at………………….

Questions?

Please feel free to contact me if you have additional questions.

Shawn Stuart, RHUPresident

HSA Consulting, Inc.888-978-8355

shawn@hsac.com