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The Standard Insurance Company Review
July 20, 2018
Towards the beginning of the twentieth century, opportunities for life insurance were still very much localized. Therefore, the majority of companies who started at this time spotted a need in the local market for a trusted insurance provider and this applies to many including The Standard.
First known as the Oregon Life Insurance Company, we now know the company as The Standard. Founded in 1906 by Leo Samuel who recognized that insurance companies in the Northwest were sparse and the options were limited. He changed this in a very short amount of time by initially focusing on the timber industry. With more and more people being injured or even killed in the timber industry, most loggers, etc., didn’t have insurance and those who did had their provider located on the east coast which meant a slow claims process.
The Standard Financial Ratings
A.M. Best – With A.M. Best, we have a financial agency who assess the full financial picture for life insurance companies and a reliable ratings system by which we can compare with other companies. Generally speaking, anything within the ‘A’ range is considered acceptable and a strong position for any insurance policies. With an ‘A’ rating, the third-highest out of a possible 13 ratings, The Standard is in a great position.
This means they’re secure from a financial standpoint and, as consumers, it means we can have confidence in their position within the market. What about the company's ability to meet long-term financial obligations? From A.M. Best, The Standard has a rating of ‘bbb+’ which officially falls into the ‘Good’ category. By definition, they have a ‘good ability to meet all ongoing senior financial obligations’. Once again, this is great news since life insurance is a long-term investment.
Standard and Poor’s – After an assessment of the overall financial position, we also need to know the credit rating of the company and this is where Standard and Poor’s comes in handy. Considered ‘Strong’, The Standard has a rating of A+ which is the fifth-strongest from a list of 20 different ratings. Although not in the top three or even four ratings, A+ is a fantastic score and allows us to be confident once again.
Moody’s – Finally, Moody’s Investor Service is another agency who investigates the credit rating of companies and The Standard has earned an A1 rating from Moody's. From a list of 21 ratings, this is the fifth-highest and it rounds off a strong set of scores. Although we’re yet to look into the policies on offer, we can certainly look at them while knowing the company has a strong financial backing.
Better Business Bureau (BBB) – Moving away from the financials, the BBB has awarded The Standard with an A+ rating for their customer service, actions within the market, and complaints (or lack of, as the case is with The Standard).
The Standard Financial Ratings snapshot:
- A.M. Best rating: A
- S&P rating: A+
- Moody's rating: A1
- Fitch rating: A
- Comdex ranking: 82
- BBB rating: A+
Financials
Owned by StanCorp Financial Group, The Standard is a subsidiary. StanCorp Financial Group has assets of nearly $29 billion and a portfolio worth $6 billion (across 6,300 loans). In the 2016 annual statement, StanCorp Financial Group and The Standard noted a life insurance in-force figure of over $260 million so this perhaps suggests the size of the company more than any other statistic we could offer.
Products offered by The Standard
The Standard is a marketing name for StanCorp Financial Group, INC. and its subsidiaries. Insurance products are issued by Standard Insurance Company in all states except New York, where insurance products are issued by The Standard Life Insurance Company of New York.
For the most part, The Standard has focused on group insurance with a variety of different group options available. However, they also have individual disability insurance policies along with individual annuities so we’re going to dig a little deeper into all three sections starting with the disability insurance.
Disability Insurance
The Standard is one of the best disability insurance companies in the marketplace. The Standard has three policies to provide income replacement. In addition to disability income insurance, the company also offers business protection and guaranteed standard issue.
The Standard really sets the standard when it comes to the different disability income options it provides. If you are looking for private disability insurance, whether you are self employed or just trying to supplement existing coverage, Standard Insurance Company should always be considered for individual long-term disability insurance.
Disability Income Protection – With three different levels of coverage, the income protection option provides long-term disability insurance and covers a percentage of your salary should you experience an injury or illness that keeps you from being able to perform a substantial or material duty of your own occupation.
Elimination Periods: Available waiting periods include 30 days, 60, 90, 180, 365, 540 or 730 days, depending on product and state.
Indexed Cost of Living Benefit Rider: Availability based on state and product, this disability insurance rider will provide 3% or 6% income benefit growth to protect your income benefit from inflation.
Platinum Advantage – (Available to all occupation classes)
Benefit Periods: 2, 5, 10 years, to age 65 or to age 67.
Family Care Benefit: If a family member develops a serious health condition, this disability insurance benefit allows you to take time off of work to care for a sick family member, providing a monthly benefit for an income loss of 20 percent or more.
Automatic Increase Benefit Rider: included in the Platinum Advantage policy, it provides monthly benefit increases of 4 percent each year, for 6 consecutive years, without requiring evidence of insurability.
Benefit Increase Rider: Also included at no extra charge, this disability insurance rider allows you the option to purchase additional coverage once every 3 years without having to go through medical underwriting.
Optional riders also include own occupation rider and residual disability rider.
Protector Platinum – (Available to all occupation classes)
Benefit Periods: 2, 5, 10 years, to age 65 or to age 67.
Riders included in the Protector Platinum Policy
- Total Disability Benefit
- Own Occupation Definition of Disability
- Compassionate Care Benefit
- Automatic Increase Benefit
- Presumptive Total Disability Benefit
- Partial Disability Benefit
- Choice of Maximum Benefit Amount and Commencement Date
- Rehabilitation Benefit
- Recovery Benefit
- Unlimited Coverage for Mental Disorder and/or Substance Abuse
- Survivor Benefit
- Cosmetic or Transplant Surgery Benefit
- Waiver of Premium Benefit
- Guaranteed Renewable
Optional Riders
- Future Purchase Option Rider
- Noncancelable Rider
- Indexed Cost of Living Rider
- Catastrophic Disability Rider
Protector Essential – Guaranteed Renewable for all occupation classes
Benefit Periods: 2, 5, to age 66/67.
Included in the Protector Essential Policy
- Policy Renewability and Premiums
- Renewable for Life (Renewal Option)
- Total Disability Benefit
- Presumptive Total Disability Benefit
- Rehabilitation Benefit
- Residual Disability Benefit
- Survivor Benefit
- Waiver of Premium Benefit
- Cosmetic or Transplant Surgery Benefit
Optional Riders
- Future Purchase Option
- Indexed Cost of Living Rider
- Catastrophic Disability Rider
Business Protection – What if you were to experience a disabling illness which keeps you from running your business? Whether you run the business alone or have partners, the Business Overhead Protector reimburses your business expenses while you’re unable to work and this allows it to continue operating as before. While covering utilities, mortgage interest (or lease payments), insurance premiums, and wages, your business doesn’t have to suffer.
Business Overhead Protector
The Standard offers business overhead expense disability insurance. Coverage to protect you as a business owner by reimbursing you for business overhead expenses, allowing your business to continue if you suffer a disabling illness or injury. 12, 18 or 24 multiplier, available for occupation classes 5A, 4A, 3A, 2A, A, B.
Business Equity Protector
Disability Insurance Buy/Sell – Available for occupation classes 5A, 4A, 3A, 2A, A, B
Annuities
The Standard offers both immediate annuities and deferred annuities.
Immediate Annuity – With this first option, you start by investing a lump sum into the policy so it’s designed for those who have already spent numerous years saving for retirement (or for those who’ve come into some money recently. As soon as the money has been invested, The Standard will convert this into a steady income stream while enjoying certain tax advantages. Depending on your needs, you may also have a chance to adjust how you receive the money so this flexibility can be important.
Deferred Annuity – Just as the name suggests, deferred annuities allow you to save money on a tax-deferred basis. Whether you’re saving for retirement or to distribute the value in the future, no tax will be paid until the amount is eventually withdrawn in the shape of a lump sum or installments. Since you earn interest on the principle amount, unpaid taxes, and interest itself, this policy allows for what’s called ‘triple compounding’.
Group Insurance
In the third and final category we have a number of group policies which have been designed for employers and employees alike. If you’d like any of the following policies through your employer, talk with the benefits representative at your place of work and you can talk through the options available with The Standard. These options include the following;
Group Life – First, we have a simple life insurance policy that provides your loved ones with a death benefit if you were to pass away. In order to carry on paying bills and such after your death (while also coping with losing your income), this sum of money can be of great help and The Standard allows extended coverage for spouses and dependents.
Group Accidental Death and Dismemberment – If you die as a result of an accident of some kind, this policy jumps in to provide a death benefit to your chosen beneficiary. In addition to death, certain other outcomes are covered if you’re unable to work.
Group Long-Term Disability – According to a recent survey, 25% of 20-year-olds will suffer some form of disability before the age of 67 and this highlights the importance of disability coverage from The Standard. In group form once again, income replacement is available after injury, illness, or sometimes even pregnancy.
Group Short-Term Disability – a short-term disability insurance policy has been designed for those who experience injuries and illnesses but are only expected to be unable to work for a shorter period of time. For this reason, many mental illnesses are covered and a percentage of your weekly income will be provided.
Group Dental and Vision – Although two separate policies, they’re often selected together as they keep us in a position to perform in our role. With the dental coverage, you pay fewer out-of-pocket expenses and you can even choose your own provider. Elsewhere, the story is similar with group vision policies offering regular check-ups.
Group Accident – Whether a car incident or a broken wrist just going about your normal life, these types of accidents can lead to injuries that take us away from work for a period of time. Essentially, the group accident plans shine after medical insurance stops to help with the actual cost of treatment and lost income.
Group Critical Illness – critical illness insurance covers you if you are diagnosed with specific critical illnesses, such as heart attack, stroke or cancer. Typically, many serious illnesses are covered with this policy and it provides a safety net of financial provision if you are critically ill.
Group Hospital Indemnity – Finally, what if you’re restricted to a hospital bed for a period of time? Planned or otherwise, hospital stays can be expensive not only for the cost itself but also the lost income so the Group Hospital Indemnity policy is ideal. With The Standard, the money is yours which means you can spend it wherever it’s needed. In addition to this, rates are locked in from the day you buy the policy and the coverage can also move across as you change jobs (or even careers!).
