IDI Enhancements May Qualify Your Clients for Additional Coverage

Omni Series Issue & Participation (I&P) Enhancements Effective Immediately

*Please note that these new participation limits apply to Omni Series policies only.

Higher Issue and Participation Limits for Individuals Based on Income

The disability income I&P limit charts have been updated.  Applicants may now qualify for a higher monthly benefit based on their income.

I&P Restrictions Removed for Financial Professionals

IDI underwriting has returned to normal published Issue and Participation limits for these financial services occupations:

• Bond and stock traders
• Investment analysts
• Investment bankers
• Hedge fund managers
• Commodity brokers
• Venture capitalists

Our underwriters will be looking for a consistent employment pattern and a stable financial situation documented by submission of current and historical
financial documentation, including:

• Tax returns for the past two years
• A year-to-date pay stub

Applicants in real estate and related industries will continue to be limited to a maximum issue and participation with other IDI of $10,000 per month and a maximum participation limit with LTD of $15,0000 per month.  Applicants working in these industries will not be eligible for occupational class upgrades.

Our underwriters will require current and historical financial documentation from applicants working in these occupations:

• Attorneys specializing in real estate
• Mortgage brokers
• Mortgage originators
• Real estate agents and brokers

NOTE: Real estate developers are not eligible for coverage

Transition Rules

Cases in Underwriting and Policies Issued in Past 90 Days

• Cases pending in underwriting will be reviewed automatically based on the new limits.
• Policies issued within the last 90 days can be reissued based on the new issue limits with a note from the producer to the underwriter requesting that the policy be reissued with the higher benefit amount. This request is subject to underwriting review and approval.

MetWINS

MetWINS will be available to run illustrations based on the higher benefit amounts beginning in February 2011. In the meantime, you can manually calculate the higher eligible benefit by following the instructions below:

To manually run an illustration:

1. Manually calculate the eligible monthly benefit using the new I&P limits charts.
2. In MetWINS, you will need to artificially increase the annual income and enter it into the "Annual Earned Income" field.
3. You will then have to enter the eligible monthly benefit into the "Level Monthly Benefit" field. See example below.

Example

• According to the new I&P limits chart, an applicant with an annual earned income of $100,000 and no group LTD or other IDI would qualify for a monthly nontaxable benefit of $5,050
• In MetWins, you will need to enter an income in the "Annual Earned Income" field that is greater than the actual annual earned income (e.g., enter $200,000, which is 2 x the annual earned income of $100,000)
• Lastly, you will have to enter the eligible monthly benefit amount from the new I&P limits chart in the "Level Monthly Benefit" field

For further assistance with running a manual illustration or with questions regarding information in this release, please contact Madison Brokerage,
1-888-539-3232.