MassMutual Expands Needs-based Disability Income Insurance Solution Portfolio

Expanded Possibilities Offer
More Choice to Policyowners 

SPRINGFIELD, MA (April 28, 2003) – Massachusetts Mutual Life Insurance Company (MassMutual) has introduced several individual disability income (DI) insurance products and enhancements for professionals and executives in the middle-to-upper income bracket.  Aligned with current and anticipated market conditions, MassMutual’s enhanced product portfolio is designed to provide increased flexibility through various cost-savings options and choices for comprehensive coverage based on a consumer’s personal situation and unique and changing needs.  Based on state availability, income-earning individuals, small business owners and partners and employees in the worksite can take advantage of new products, rider options, discounts, and benefit and waiting periods to help protect a portion of their earned income, and/or retirement contribution ability, while addressing their personal needs and budget situations.

“As we closely monitor our clients’ personal situations and market conditions, we are hearing a lot of buzz about health insurance costs continuing to rise (and therefore eroding net income levels), and costs of benefits shifting to employees, and employers looking for solutions for all of their employees,” according to Paul Gribbons, vice president, DI product development at MassMutual.  “We are also finding that voluntary worksite sales are increasing, with dual-income households at record levels, and families increasingly focusing on preservation of assets.  In a time when protecting what one has is of the ultimate concern, MassMutual is responding by continuing to add to our comprehensive product portfolio with more options for our clients to choose from based on their needs today, and changing needs tomorrow.”

New Retirement Contribution Protection Option

MassMutual introduces another option for retirement contribution protection.  RetireGuard^R – still available as a stand-alone policy or now as a rider option – provides policyowner benefits to help protect the ability to make retirement contributions (including the amount equal to the employer’s match) in the event of total disability.  Available as a rider (at an additional cost) on Radius^R, FlexElect Individual or FlexElect Multi-life (purchased in the worksite) policies, this new option provides base coverage equivalent to a stand-alone RetireGuard policy, but streamlines and simplifies the application process, and offers Future Insurability Option (FIO) and three-percent Cost of Living Adjustment (COLA) electives (also at an additional cost).  With both the stand-alone and rider option, RetireGuard is not a substitute for a pension or retirement plan, but rather a DI insurance policy or rider that pays benefits to a trust for distribution at age 65 or 67 (if available).  

New Spousal Discount 

A 10 percent spousal discount is now available to spouses of Radius (individual) and FlexElect Individual policyowners who purchase these policies on their own outside of the worksite.  (A spousal discount on a Radius [individual] or FlexElect Individual policy is also available to spouses of Business Overhead Expense and DI Buy-Sell policyowners.)  What’s more, a 10 percent discount will be applied to the original applicant if his/her spouse applies for Radius (individual) or FlexElect Individual coverage within two weeks of the original spouse’s application submission, and if the original spouse applicant holds no other discounts.

New Individual Disability Income Insurance Solution for Middle Income Earners

Designed to be purchased outside the worksite, MassMutual’s FlexElect^SM Individual solution targets a variety of occupations in the $30,000-$70,000 income range.  In addition to its intrinsic flexibility to address evolving needs and budgets of policyowners, attractive features include cost sensitivity and non-cancelability, with the base product guaranteed continuable to age 65 and conditionally renewable to 75.  

Available at additional cost, FlexElect Individual policyowners can assess and prioritize their coverage needs by adding a variety of rider options to their base policy:

• RetireGuard rider provides benefits to help protect the ability to make retirement contributions in the event of total disability;       
• Automatic Additional Benefit Increase rider provides the opportunity for automatic annual purchase of benefits without proof of medical or financial insurability;      
• COLA rider increases benefits while a policyowner is disabled and on claim to keep pace with inflation;      
• Future Insurability Option (FIO) increases a policyowner’s monthly benefit as income increases, without evidence of medical insurability; and      
• Recovery Incentive Benefit Rider offers a policyowner partial and/or return to work benefits.

Additionally, policyowners may benefit from a variety of discounts such as a 5 percent first year cross-sell discount (not available in New Jersey); 10 percent association discount; and a 10 percent spousal discount.  (Only one discount allowed per policy.)

Further Information

MassMutual’s DI Service Center [(800) 272-2216, “3” for DI] can provide producers and policyowners with answers to inquiries regarding DI insurance application guidelines, qualification criteria, reference and marketing materials, underwriting information, terms and conditions, exclusions and limitations, and costs.  Or, Internet users may visit halfapaycheck.com for more information. 

About MassMutual

A disability income insurance leader, MassMutual supports people during the financial and emotional stress of a disability as the result of an accident or illness and helps them transition back to the work environment.  MassMutual Financial Group – comprised of member companies with over $240 billion in assets under management as of year-end 2002 – is a global, growth-oriented, diversified financial services organization providing life insurance, annuities, disability income insurance, long term care insurance, retirement planning products, structured settlement annuities, trust services, money management, and other financial products and services.

The MassMutual Financial Group is a marketing designation (or fleet name) for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliates, which include: OppenheimerFunds, Inc.; David L. Babson & Company Inc.; Cornerstone Real Estate Advisers, Inc.; MML Investors Services, Inc.; The MassMutual Trust Company, FSB; Antares Capital Corporation; MML Bay State Life Insurance Company; C.M. Life Insurance Company, and MassMutual International, Inc.  MassMutual International also has operations in Taiwan, Hong Kong, Japan, Bermuda, Chile, Luxembourg, Macao, Argentina and a representative office in Shanghai.  MassMutual is on the Internet at www.massmutual.com.

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