MassMutual wanted to make assessing occupation classes easier, so they enhanced their business owner and executive disability income (DI) insurance underwriting programs. Additionally, they have enhanced their W-2 to 1099 contractor program so you are able to use income from your previous employer.*
Business Owner Enhancements
Business owners, whether or not they are listed in the Occupational Underwriting section of the MassMutual DI Reference Manual (DI1075), will be eligible for the program provided they work full-time, year-round and meet the following criteria:
- 5+ years of ownership
- <10% manual labor
- <20% sales duties
- 20%+ ownership
Business Owner occ class enhancement
- Income of $50,000+ with 5 or more employees = 3A
- Income of $100,000+ with 5 or more employees = 4A
- Income of $150,000 with 10 or more employees = 5A
- Income of $250,000 with 10 or more employees = 5A/3
Occupations not eligible for this program:
- Medical professions
- Dental professions
- Individuals working from home
- Individuals engaged in a profession or occupation deemed uninsurable.
Business Executive Enhancements
Business executives (except practicing medical/dental professionals or those in a new business or profession) may qualify for enhanced occupational classification and coverage at a lower cost:
Employees of a business that has been in existence for at least 5 years and is financially sound, and meet the following criteria are eligible for the program.
- 5+ years of experience
- <10% manual labor
- <20% sales duties
Employee Enhancements (income needed for two years)
- $150,000+ = 4A
- $175,000+ = 5A
- $250,000+ = 5A/3
Occupations not eligible for this program:
- Practicing medical professions
- Practicing dental professions
- Individuals engaged in a profession or occupation deemed uninsurable.
Newly Self -Employed Contractors
New self-employed 1099 contractors experienced in the same occupation may qualify for individual DI in accordance to their historical W-2 earnings.
- Must be self-employed within the past 12 months in similar occupation
- Must be actively at work a minimum of 30 hours a week.
- Must submit the most recent W-2 or paystub with year to date figure.
For these instances, MassMutual will use a percentage of the most recent W-2 earnings to determine the eligible monthly benefit amount for new 1099 contractors.
- Physicians and Dentists: 80% of the prior W-2 earnings
- All Other Occupations: 75% of the prior W-2 earnings
