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Policy Matters



There’s a common misconception that small- to medium-size businesses can't or shouldn’t offer group life and disability insurance to their team members. But that’s far from the truth. Here are some real-life LLIS client examples to show you how it’s being done.

Let’s start with the types of group insurance LLIS can help your clients with and that form the basis for this article:

Once we start working with you and/or your client, there is some basic information we need to know to help us determine which insurance company(ies) to recommend and to provide initial quotes:

  • Type of business
  • How many years the business has been operating (must be at least one year)
  • The business’s location (states have different offerings and rates)
  • List of owners/employees: age, gender, income, and occupation

Here are the stories of some clients LLIS has worked with recently. (Note: all are non-voluntary (paid by the employer); the clients realized value in offering this as an employee benefit and in savings by doing so.) 

More about Multi-life

You’ve seen how group coverage can be a terrific benefit for employees and owners of small- to medium-size businesses. And we introduced you to multi-life coverage with its accompanying discounts. Here’s more about this solution that’s ideal when group coverage isn’t a viable option or isn't the best option:

  • Key industries: manufacturing, banking, pharmaceuticals, IT, engineering, consulting, and telecommunications.
  • Recommended over group DI when your clients don’t need life, STD, vision, or dental. Simply put, multi-life disability insurance is for individuals with a common employer or association who purchase individual DI policies that can cover:
    • Regular IDI
    • Buy-sell
    • Key person
    • Business loans
    • Business overhead
  • Can be voluntary or non-voluntary
  • Policies are portable
  • Up to 30% discount on premiums
  • Requirements:
    • 3+ full-time employees (FTEs)
    • Policy premium for each policy must be at least $200 per year
    • Each employee must earn $15,000+

Here is an example of how one client used the multi-life program in her practice:

A female dentist purchased an individual LTD policy for herself. Soon after, she decided to offer an employer-paid basic DI policy as a benefit to her two hygienists (also female), and the coverage then became multi-life. How did this dentist benefit?

  1. Her employees now had an important benefit that protected their income and were appreciative to their employer for the coverage.
  2. If one of the hygienists leaves the practice, she can take her policy with her, assuming the premiums herself.
  3. Because it’s now a multi-life policy, the dentist was able to get unisex rates, plus a 30% discount because there are now three policies (20% came from having 3+ policies; an additional 10% came from the mental/nervous exclusion elected).
  4. The insurance company applied that 30% discount retroactively to past premiums paid.

And there’s one more way we can help your clients with small- to medium-size businesses save money on DI: 

The 10% Affiliation Discount*, applicable in the following scenarios (either voluntary or non-voluntary since all policies are IDI):

  • 1099 contractors within the same business/entity. For example:
    • A consulting company provides skilled engineers to telecommunications, cable/TV, and power companies. The client companies pay the consulting group, and the consulting group pays the contractors so they are, effectively, affiliated. The owners of the consulting company offer individual disability policies (with the 10% affiliation discount) to the contractors, who are grateful because, without this affiliation, their IDI policies may be financially out of reach.
  • Franchise owners. For example:
    • Let’s say you own a franchise that sells chicken and uses cows in its advertising. Your franchise is in Atlanta. Joe owns a franchise of that same company in Kennesaw. And Sue owns one in Alpharetta. Because you have this franchise in common, you can get together to purchase individual DI policies (for owners only; not employees). If you decide to offer coverage to employees, you would then consider multi-life. 
  • Spouses. For example:
    • The female dentist who purchased multi-life above: Her husband is eligible for this 10% affiliation discount.

*not available to medical professionals

Your business owner clients are probably not familiar with these plans. We’re here to help. With simple explanations or intricate ones. For hypotheticals or actual client needs. And because income protection is critical to your clients, LLIS has two subject matter experts to assist. You can reach us at (877) 254-4429 or Kathy Bilodeau or Brian Ciccarelli.


Term Life Insurance | Low-Load Universal Life (Individual & Survivorship) | No Lapse Guaranteed Univeral Life (Individual & Survivorship) | Long Term Care Insurance | Disability Insurance | Critical Care Insurance | Low-Load Variable Annuity | Immediate and Fixed Annuities | Low-Load Variable Universal Life | Hybrid Life/LTCi | Hybrid Annuity/LTCi

(We recommend low-load permanent life insurance and annuities when possible)

(Not all policy types available in all states)

For a list of current providers, visit the Advisor Tools section of our website and click on "Insurance Companies We Work With".

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