Guardian's New ProVider Plus Disability Insurance Policy
The Next Generation
by Steven L. Crawford

As of April 28th, 2008 Guardian will have a brand new individual disability insurance policy. When a company releases a new disability insurance contract, most of the time it is to increase the rates for new consumers. This product however, is not about a rate increase. In fact, there are significant rate reductions for many occupations and age segments.

The ProVider Plus disability insurance policy has been well known for many years as an industry leader. ProVider Plus is the premier choice for individual non-cancellable disability insurance amongst consumers. Consumers will be happy to know that the new policy has retained its quality and value. ProVider Plus still has a pure own-occupation definition of total disability for the entire benefit period. It still offers a recovery benefit for the entire benefit period utilizing the residual disability rider, and for many occupations it is even less expensive now.

When this product was designed, it was important to Guardian that the new contract does not reduce benefits to consumers. With that in mind, the insurance company set about to build a next generation policy that would maintain its lead in the disability insurance market. All of the core benefits of the old policy were maintained, or improved upon. It is still Non-Cancellable and Guaranteed Renewable to age 65 or 67. Guardian now offers a true own-occupation definition of total disability for the entire benefit period for all occupation classes. Most importantly, it still is one of few carriers to offer a recovery benefit for up to the entire benefit period following a residual disability so long as the insured remains gainfully employed in his or her own occupation.

With the core of the disability insurance policy remaining virtually unchanged, Guardian built in some brand new riders and features. The goal was to make this contract more consumer-friendly, easier to understand, and overall better. You will see new riders like the 4-year delayed COLA option for people who were previously on the fence about whether or not to buy a COLA rider. There are two new benefit period choices: “to age 67” and “10 Year”. There is an additional premium schedule choice in the step-rate premium option, which allows younger professionals to buy disability insurance at an initial lower premium when cash flow is more of an issue. They made paying premiums on their monthly Guard-O-Matic schedule the same price as an annual premium payment saving consumers who pay monthly an additional 3%. Basically the new contract has a lot more options to help consumers really tailor their disability insurance policy to their unique needs.

Rates for the new ProVider Plus disability insurance policy are lower for many occupations and age segments. Attorneys, accountants, small business owners, executives, optometrists, physicians, and dentists are just some occupations that will see rate decreases.* Females will see much better rates than before, and employers who have qualified sick pay programs will see a big improvement in rates. This product is designed to keep Guardian the number one choice for individual disability insurance in the market. The toughest thing to do in any business is to remain number one. I think the next generation ProVider Plus disability insurance policy will help to keep Guardian competitive for many years to come.

*Premium reductions are not universal for all individuals when comparing ProVider Plus Policy forms 1400 and 1500 with prior policy forms. Accordingly, not all applicants will experience a decrease in premiums.