Long Term Care and Disability Insurance
Long Term Care and Disability Insurance
Long Term Care and Disability Insurance
Long Term Care and Disability Insurance
Emphasizing Disability Income Awareness is more than just One…
Presented by Leonard Berthelsen May is designated as Disability Income Awareness month and much of the focus is given to presenting, selling and educating clients during the month. Let’s take that sharp focus from May and extend it throughout the year. Your client’s need for protection is there throughout the year, not just in a one month ad campaign. Sickness and accidents aren’t just confined to one month but are present all year long. Disability Income protection should be at the forefront of every discussion with our clients to talk about their exposure and how you can reduce the risk. Why, because all the other “stuff” that we talk about, sell or convince a client to buy becomes secondary if they can’t afford to continue paying the premiums when they become disabled. We write many times in these blogs about theory and process but rarely about how the personal side of things affects our loved ones. Let me share a quick story with you about one of those personal issues. A 37 year old man was having lunch with his 3 year old daughter at her daycare when he became flushed and dizzy. Making it through the lunch he returned to his car with the air conditioner on to cool off. A passer-by tapped on his car window to see if he was okay, he had passed out. This 37 year old man had just suffered a stroke. The quick and smart thinking of a passer-by probably saved his life. In intensive care, he was informed that most likely he had a small clot that entered his brain. With medication and some intense physical and occupational therapy, he will gain full control of his arm once again. Who would be concerned of this happening at this age? We never know when, where or why, but disabilities happen all the time to all kinds of people. Having the right protection can and will make all the difference in the world. Just make sure that your clients are protected. Oh, by the way, this 37 year old man is my son. Yes, he did have Disability Income Protection!
Long Term Care and Disability Insurance
UNDERSTANDING WHAT GOES INTO A DISABILITY UNDERWRITING DECISION
Presented by Donna Ries The purpose of disability income is to protect your client’s income in the event they should become disabled from an accident or sickness and unable to work. The following are common areas every disability carrier considers. Age: Disability income insurance is designed to protect your client’s income during their working years. The issue age has a direct impact on the premium paid for coverage. Generally the issue ages are between the ages of 18 – 60 (the higher the age, the higher the premium) and since no one has found a way to reverse the aging process yet, we have to go with their current age. Income: The benefit amount your client considers has a direct correlation with your client’s income. The entire amount of income is typically not covered; otherwise, the client would not typically have an incentive to try and return to work. If your client is paying for their own disability insurance with after-tax dollars, the monthly benefit amount averages between 50% to 60% of their income and it would be paid tax free. However, if your client’s employer is paying for coverage, or if the employee is paying the premium with pre-tax dollars, a larger monthly benefit is typically allowed because the benefits are taxable to the employee. It is also important to specify if your client is self employed. If the client’s income is derived from 1099 reportable income, then the amount of income needs to be stated in terms of net income instead of gross income because of the business deductions allowed. Occupation: Disability protection deals with the type of work your client participates in. The more hands-on or risky the occupation, the higher the premium could be. It is important to find out your client’s day-to-day duties and not just a job title to determine their occupational class. For instance, if your client states that they are a manager, that description is too vague to determine a quote. A little bit more information will help in determining what occupation class to quote from. Managing a clerical staff is certainly different from managing a tree trimming crew. The risk between these two types of managers is significantly different. Health: Your client’s overall health is taken into consideration. Height and weight certainly play a role in determining eligibility and each carrier has a slightly different approach with this issue. Your client’s health history is taken into consideration when determining eligibility and it may necessitate an exclusion if the health condition is significant. These considerations for disability insurance are common factors no matter what carrier you choose for your client. Having a better understanding of what goes into the underwriting of disability protection will certainly help you better explain the process for your client. Feel free to call your Financial Brokerage DI marketing specialist at 800-397-9999 to help you pre-qualify your client. We are here to help you quote and place your next disability case!
Long Term Care and Disability Insurance
DISABILITY INSURANCE SOLUTIONS FOR DIFFICULT OCCUPATION CLASSES
Presented by Donna Ries All occupations have a need for income protection, but some occupations may be more difficult to insure with certain carriers for disability insurance than others. Two occupations in particular, which have a wide interpretation of DI coverage, are Chiropractors and Paramedics or Emergency Medical Technicians (EMT). Chiropractors are viewed differently by DI carriers; some are willing to insure them, others are not and even others offer limited benefits. The nature of their occupation is considered risky by both claim experience as well as the physical demands of the job. Having to adjust their clients by lifting, bending and physical contact with their clients is considered a manual profession. In a worst case scenario, some DI carriers would not even consider insuring a Chiropractor. There are other DI carriers that would insure up to a two year benefit period and still others that would offer a Chiropractor a five year benefit period. So when we think this profession might be one to avoid when considering DI protection, take another look and you might just be surprised. There is even more diversity in coverage choices available for a paramedic or EMT. At worst, one DI carrier would not consider this profession for coverage, yet another DI carrier would consider for short term disability only. There are also DI carriers that would offer a two year benefit and another carrier all the way out to age 67. With physical exertion and initial patient contact, yes there is increased risk but still insurable. The point is that Financial Brokerage offers multiple DI carriers and solutions for both of these occupations and many more. With the diversity between multiple DI carriers, you can count on Financial Brokerage to find which carrier would best meet your client’s needs. Give these occupations some consideration and give your DI Sales Manager at Financial Brokerage a call at 800-397-9999. I think you will be pleased by the outcome.
Long Term Care and Disability Insurance