Life, AD&D, and LTD Case Study

The incumbent carrier had the Life, employer paid AD&D, and LTD. The Life had received a 7% decrease for plan year 2005, while the LTD had had the same rate for the last five years. In addition, the university was experiencing service issues with the incumbent. 

Havens & Company’s review of the experience indicated that both the Life and the LTD were significantly overpriced. After Havens & Company asked only ten clarifying questions about the experience presented by the incumbent, the incumbent offered an off-cycle rate decrease and lowered the Life rate by 14.3% and the LTD by 26.1%. 

No further rate reductions were pursued with the incumbent since the university decided to have Havens & Company put their inforce coverages out to bid so that they could: 

  • achieve greater financial savings; 
  • improve the level of service they were receiving; 
  • add an Employee Assistance Program that could be measured with utilization reporting; and, 
  • expand the voluntary coverage options available to their employees. 

As a result of the RFP process, the university was able to achieve all 4 goals. From the financial perspective alone, they lowered their benefits spend for the Life, AD&D, and LTD by an additional 20.8% - in other words, with Havens & Company’s assistance, they achieved overall employer savings of 34%. 

Savings Chart



Annual Premium $1,230,000 $1,023,000


Renewal Annual rate review Annual rate review 3 year rate guarantee
Employer Savings Annually/Over Rate Guarantee Period ------------------ $207,000/$621,000 $419,000/$1,257,000


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