Page 139 - Group Insurance and Retirement Benefit IC 83 E- Book

Remember, however, that pre-existing conditions for certain individuals must be covered
when a group plan replaces another group plan under which the requirements for pre-

existing conditions had already been met.

Opportunities in the Group Market

The group disability income insurance market is a large, potentially lucrative source of

new business for you. Although many businesses already have group health and life
insurance plans, fewer plans include group DI insurance. The less stringent underwriting

and lower individual cost that characterize group disability plans are just two features that
make this coverage attractive to both employers and employees. The trade-offs in benefit

restrictions as compared to individual policies are often worth the difference in price and
availability to more people.

Because only a small percentage of people have individua1 disability income policies,
group DI coverage fulfills a genuine societal need. Group DI is the only income

protection that some people have, barring catastrophic disabilities that qualify them for

government DI benefits. And, people whose incomes fall in the lower range and who are
therefore not good candidates for individual policies are usually eligible for group DI.

Finally, group DI can be incorporated into an employer's benefit package at very little

cost to the employer since there are tax advantages to having premiums paid by the
employees themselves rather than by the employer. These are some of the advantages you

are in a position to promote with employers and other groups as you work in this market.