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© 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options. 14507PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers.

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Presentation on theme: "© 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options. 14507PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers."— Presentation transcript:

1 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. How To Exercise Future Purchase Options x For producer training. Not for use with consumers. v Standard Insurance Company | The Standard Life Insurance Company of New York Standard Insurance Company is licensed to issue insurance in all states except New York. The Standard Life Insurance Company of New York is only licensed to issue insurance in the state of New York.

2 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. Table of Contents Future Purchase Options (FPOs) How To View Your Customers’ Available FPOs Notifications To Your Customers Before You Contact Your Customers About Existing FPOs Working With Your Customers To Exercise Their FPOs The FPO Application Paperwork Income Documentation Underwriting Decision And Policy Issue Summary Checklist

3 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. The Future Purchase Option (FPO) Rider allows for the purchase of benefit increases on scheduled individual disability insurance (IDI) policy anniversary dates, known as option dates, subject only to financial underwriting and policy change requirements. Future Purchase Options

4 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. You may also know FPOs as Future Increase Options Benefit Increase Options Future Buy-Out Expense Options Future Increase Protection Agreements Additional Monthly Income Option Agreements Guaranteed Future Insurability Agreements Future Purchase Options

5 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. Depending on the rider version and IDI product, the option date could be on each policy anniversary every two years after the policy effective date or every three years Future Purchase Options

6 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. The rider is a valuable benefit that may be exercised at different times during the life of a policy and allows policyowners to increase their benefit amounts to keep pace with income and disability insurance needs. No medical underwriting is necessary to exercise an FPO. Future Purchase Option Rider

7 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. The FPO Rider is available with these products in The Protector Series SM : Protector Platinum SM, Protector+ SM and Protector Essential SM individual disability income insurance Business Overhead Protector SM individual disability business overhead expense insurance Business Equity Protector SM individual disability buy/sell funding insurance. Not all products are available in all states. Please see The Protector Series States Availability Chart to determine which products are available.The Protector Series States Availability Chart Which products have the FPO Rider?

8 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. How To View Your Customers’ Available Future Purchase Options

9 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. Log in to Policy Inquiry to find out the details of your customers’ coverage. If they have an FPO on in force policies, the information will be recorded here. Access Policy Inquiry at The Standard’s Financial Professionals’ IDI webpage at the Log In link How To View Your Customers’ In Force FPOs

10 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. How To View Your Customers’ Available FPOs FPO Rider information is located under Benefit and Rider Detail. Select this link to see the details of the FPO.

11 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. A popup window displays the rider description How To View Your Customers’ Available FPOs

12 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. Notifications To Your Customers

13 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. Notifications to your customers The Standard mails a letter to the policy owner 60 days before the policy anniversary date. The letter may include estimated available benefit amounts and premiums. The Standard also sends a copy of the letter to the Master General Agent (MGA) or Securian Managing Partner (SMP) who can assist the insurance representative.* We recommend you keep a tickler file to notify you when customers’ FPOs come due. * The Standard also provides a monthly FPO report to MGAs and SMPs.

14 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. Mailings From Your Office The Standard offers a preprinted FPO card, form SI/SNY you can use to remind your customers. It is formatted to fit into a standard business envelope. You can order it at from Find Marketing Materials.form SI/SNY

15 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. Before You Contact Your Customers About Existing FPOs 15

16 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. Contact your Master General Agent, Securian Managing Partner or The Standard to confirm that the policies are paid to a current date and that your customers have not missed the due dates for exercising their FPOs. Before You Contact Your Customers About Exercising Their FPOs

17 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. Obtain an illustration. An essential part of the FPO exercise process is an illustration for your customer so it is clear what potential additional monthly benefit amount and new premium might be. Contact your Master General Agent or Securian Managing Partner to obtain an illustration. If you need additional assistance, please call ( in New York). A member of The Standard’s In force Policy Service team will assist you. You may also request an illustration by ing Before You Contact Your Customers About Exercising Their FPOs

18 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. Working With Your Customers To Exercise Their FPOs If you are not the original writing agent, Master General Agent or Securian Managing Partner, please obtain a signed Servicing Agent Change Letter from the policyowner so The Standard can update the policy with the new information. Or your customer may complete Policy Change Request, Form SI 2240 or Form SNY 2240 from Find Applications & Forms.Form SI 2240Form SNY 2240

19 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. Information You Need For FPO Illustrations 1.Policy number and name of the insured. 2.Annual earned income. If the customer is a business owner, please provide net income (personal annual earned income after business expenses). 3.Amount of in force individual disability insurance with The Standard and with other carriers. 4.Amount of group LTD in force. Include income replacement percentage (e.g., 60%) and the group cap amount. 5.Who is paying for the existing in force coverage? Is it employer-paid or employee-paid. 6.Will the additional coverage being applied for be employer-paid or employee-paid?

20 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. A member of The Standard’s In force Policy Service team will you: A cover letter addressed to the policy owner The illustration Summary page with benefit amounts and riders The illustration Policy Provisions pages What You Will Receive From The Standard’s In Force Team

21 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. Sample FPO Illustration

22 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. The FPO Illustration Policy provision information is also part of the illustration.

23 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. FPO Application Paperwork

24 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. FPO Application Paperwork After you have reviewed the IDI illustration with your customer, the next step is to complete a state- specific increase option application with your customer. You can find and print the application by selecting Find Applications & Forms at

25 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. The FPO Application Paperwork Select the Increase Option Application Packet, form 11357, to view or download to your computer. This packet is used for FPO exercises for all products in The Protector Series.

26 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. The FPO Application Paperwork for Business Overhead Protector In addition to printing the Increase Option Application Packet, form 11357, the Business Overhead Protector Application Supplement, form 2967, must be completed for Business Overhead Protector.

27 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. Income Documentation

28 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. Income documentation The type of underwriting used for the FPO exercise process is financial underwriting only. This means that Income Documentation is another requirement of the future increase option exercise process and must be submitted with the application. The flyer Understanding Income Documentation, form SI/SNY will assist you in determining which financial documentation you need to obtain from your customers.Understanding Income Documentation The FPO application will be processed only if it contains complete and appropriate income documentation.

29 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. Underwriting Decision And Policy Issue

30 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. Underwriting Decision And Policy Issue A member of the In Force Team will communicate the decision to the Master General Agent, Securian Managing Partner, producer or Advisor. Issuance of the additional monthly benefit amount under the FPO Rider is completed through either of the following actions: A new policy is issued with the approved monthly benefit amount. The policy is mailed to the MGA or SMP. The In Force Team will include instructions for you regarding the outstanding items that need to be obtained when you meet with your customer to deliver the policy. The approved monthly benefit amount is added to the original policy. A policy endorsement letter is mailed to the policy owner with a copy mailed to the Master General Agent or Securian Managing Partner.

31 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. Summary Checklist

32 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. Summary Checklist Here is a summary checklist of what to keep in mind as you assist your customers with their FPO exercise: Confirm your customer is eligible for the increase based on financials. Confirm the policy premium is paid and up-to-date Contact your Master General Agent/Securian Managing Partner or The Standard’s home office to obtain an illustration Confirm the due date for the FPO requirements with The Standard’s home office Confirm you are licensed in the same state as the state in which the application will be taken. continued

33 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. Download and print the Increase Option Application Packet for the appropriate state Download and print supplemental forms if the FPO is for one of the business products (Business Overhead Protector or Business Equity Protector) Answer all questions on the application Obtain all required signatures and accurate dates Changes or corrections are initialed by the applicant You have not used correction tapes or fluids on any form Direct FPO status inquiries to your Master General Agent (MGA) or Securian Managing Partner (SMP) Submit Increase Option Packet to The Standard or to your MGA or SMP together with the appropriate income documentation. Summary Checklist (cont’d)

34 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. We are looking forward to working with you. If you have any questions, about exercising a FPO, please contact your Master General Agent, Securian Managing Partner or The Standard at or call ( in New Questions?

35 © 2010 Standard Insur SI/SNYe Company How To Exercise Future Purchase Options PPT (Rev 10/14) SI/SNY For Producer Training. Not for use with consumers. The Standard is a marketing name for StanCorp Financial Group, Inc. and its subsidiaries. Insurance products are offered by Standard Insurance Company of Portland, Ore. in all states except New York, where insurance products are offered by The Standard Life Insurance Company of New York of White Plains, N.Y. Product features and availability vary by state and company and are solely the responsibility of each subsidiary. Each company is solely responsible for its own financial condition.


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