Choosing a DI Product Strong company Flexible plan Competitive price
Three Occupation Definitions OWN OCCUPATION – Unable to engage in own occupation. (True own occ) OWN OCCUPATION & NOT ENGAGED – Unable to engage in own occupation and not engaged in any occupation for wage or profit. (Modified definition of disability) REASONABLE OCCUPATION – Unable to engage in any occupation based on education, training or experience.
Non-can and Guaranteed Renewable Guaranteed Renewable Conditionally Renewable for Life Basic Policy Provisions
Premiums waived after 90 days 180-day break in waiting period Surgical transplant Rehabilitation benefits in addition to monthly DI benefit Specific or Presumptive Loss Basic Policy Provisions
Reasonable Occupation 24 Months Own Occ & Own Occ & Not Engaged Not Engaged 24 Months Own Occ Reasonable Occupation Plan Flexibility 60 Months Own Occ & Not Engaged Reasonable Occupation 60 Months Own Occ Reasonable Occupation To Age 65 Own Occ (Pure or True) To Age 65 Own Occ & Not Engaged (Modified)
DI Jeopardy How long does the average disability last? What is the most economical elimination period for professional occupations? Which definition of disability enables the policyholder to collect disability benefits while he/she is engaged in another gainful occupation?
Long-Term & 24-Month Residual Riders 20% loss of prior monthly earnings Unable to perform one or more of the material and substantial duties of your occupation; or Unable to engage in your occupation for 80% of the time, as was usual prior to the start of your disability.
GPIR or FPO No medical evidence required when exercising increases Must provide financial verification for increased benefit such as W-2, pay stub or tax return
DI Jeopardy In what instances will a person be eligible for Social Security disability benefits? Which rider increases the monthly benefit if the policyholder is working? What is the window of time a disability can reoccur without requiring the claimant to satisfy a second elimination period?
Incarceration War or act of war Undisclosed pre-existing conditions Intentional self-inflicted injury or sickness 24-Month Drug, Alcohol, Mental and Nervous Endorsement, unless hospital confined Exclusions/LimitationsExclusions/Limitations
25% Tobacco Differential 15% - 20% Multi-Life Discount 15% Association Discount Unisex and Sex-Distinct Rates
DI Jeopardy Are DI premiums more expensive for men or women? What affect does the SSI rider have on the DI premium? What is the most common reason people give for not purchasing a disability income policy?
Business Protection Plans Business Overhead Expense- covers Business Overhead Expense- covers overhead expenses while owner is disabled, if there is a loss of income. Buy/Sell- if one owner becomes disabled, Buy/Sell- if one owner becomes disabled, buys out the partnership for the other owner/owners
Business Overhead Expense Expenses Covered: Employees salaries Utilities Rent Salary for business owners temporary replacement (usually 6 months) Interest payments on business debt
Business Overhead Expense Expenses not covered: Policy-owners salary Renovations to office or expansions of the business during disability
DI Jeopardy What is a good rule of thumb to determine if an expense is covered under Business Overhead Expense (BOE) policy? What is the longest benefit period available in a Business Overhead Expense (BOE) policy?
Multi-Life DI Plans Guaranteed Standard Issue (No Medical Underwriting) with premium discounts for employer-paid and voluntary benefit programs.
Benefits for Client Supplements LTD benefits with individual plan to insure 90% of the net income. Unisex rates No medical underwriting
Benefits for Producer Build upon existing LTD programs Simplified underwriting and application process. –Census –No medical underwriting
Maximum Issue Limits Varies based on the number of participants. Some carriers will offer plans on GSI basis for as few as 5 executives and up.
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