STLDI plans banned in Illinois: What advisors must know

I want to reach out with some critical information that just came down from the Illinois Department of Insurance. We all know that staying ahead of regulatory changes isn’t just part of the job—it’s how we protect our clients and ensure they’re getting the best possible guidance.

Here’s the deal: On Aug. 7, the department released Bulletin 2024-15, and it has some big implications for anyone dealing with short-term limited duration insurance and noncoordinated fixed indemnity excepted benefits. If you work with these plans, listen up—this one’s important.

Starting Jan. 1, 2025, STLDI plans will be banned in Illinois. That’s right—these plans are going away, and we have a responsibility to make sure our clients aren’t left in the lurch. The department is clear on this: We need to get the word out to everyone currently enrolled and any new clients considering these plans.

Your clients need to know this coverage isn’t considered “minimum essential coverage” under federal law.

Translation?

Losing this coverage won’t trigger a special enrollment period. If your clients don’t act during the regular open enrollment period, they could end up without any coverage at all.

It’s up to you to make sure your clients understand the risks. STLDI plans don’t offer the same protections as comprehensive major medical coverage. That’s why it’s so important you guide them to make smart decisions now, especially with open enrollment for 2025 right around the corner (Nov. 1, 2024 – Jan. 15, 2025).

What you need to do:

1. Communicate now: Reach out to every client who has or is considering an STLDI plan. They need to know this coverage will be off the table soon, and they won’t have the protections that come with comprehensive major medical coverage.
2. Educate and guide: This is where you step up and do what you do best. Educate your clients. Make sure they understand the risks of sticking with an STLDI plan as the clock ticks down. Encourage them to get ahead of the curve and take advantage of the upcoming open enrollment period for 2025. It starts Nov. 1 and runs through Jan. 15, 2025. This is their window to lock in comprehensive coverage and avoid any gaps.

Your role is crucial. As advisors, you’re on the front lines here. Your clients trust you to guide them through these changes, and it’s up to you to make sure they’re protected. Don’t wait until the last minute.

You can make sure your clients are fully informed and ready to transition smoothly to a plan that keeps them covered without any gaps. You have the knowledge, and it’s your job to use it.

Take a few minutes to review Bulletin 2024-15, get familiar with the details, and start reaching out to your clients. This is about more than compliance—it’s about doing what you do best: putting your clients’ needs first.

Let’s make sure no one is left behind.

Editor's note: Read more about STLDI here

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Lloyd Lofton is the founder of Power Behind the Sales. He is the author of The Saleshero’s Guide To Handling Objections, voted 1 of the 11 Best New Presentation Books To Read in 2020 by BookAuthority. Lloyd may be contacted at lloyd.lofton@innfeedback.com.