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Disability

How does my policy pay?

The maximum monthly Disability Benefit will be issued based on your current earned income. Total disability is never required. If you are unable to perform the substantial and material duties of your regular occupation or your ability to work is restricted, you have a loss of earnings of at least 20%, and are under appropriate doctor’s care, you are eligible to a benefit proportionate to your percentage of loss of earnings. Once you qualify for disability benefits, you’re guaranteed a minimum benefit of at least 50% of your Maximum Monthly Benefit for the first six months. Even after you recover from a disability and return to work full time, you’ll continue to receive benefits for up to four months if your income loss is at least 20%

Cannot Work In Regular Occupation

The key to the strength of the base policy is regular occupation: as long as the insured is unable to perform the substantial and material duties of his/her regular occupation, and is not working in a new occupation, he/she is considered disabled. Unlike some carriers, there is no time limit after which a different definition applies (e.g., after 2 years “unable to perform any job”).
Assume the insured is unable to return to his/her regular occupation and is not working in a new occupation. He/she will receive the full monthly benefit of $3,000 until the end of the benefit period (i.e., age 65). This is included in the base policy!

Restricted Ability to Work in Regular Occupation

If the insured has a restricted ability to work, or the insured is unable to perform the substantial and material duties of his/her regular occupation, and has a 20% or more loss of income due to the disability, Most companies will consider the insured to be disabled. This definition covers both total and residual disability. Assume the insured is able to work part time and earns 50% of his/her pre-disability income. The insured would receive 50% of his/her benefit, or $1,500, to supplement his/her part-time monthly income of $2,500 for a total income of $4,000.

Insured Working in a New Occupation by Choice

If the insured is unable to work in his/her regular occupation, but chooses to work in a new occupation and has a loss of earnings greater than 20%, we will view this as a “residual” claim situation under the base policy, and pay a residual benefit. The key is that the client entered the new job by his/her own choice – the policy cannot force the insured into a new job.Assume the insured can work in a new job and chooses to do so. If the insured earns 65% of his/her pre-disability income ($3,250), we will pay 35% (the income loss he/she has) of the monthly benefit, or $1,050. This will bring his/her total income to $4,300.

When will I start to receive benefits?

You choose the elimination period. Once you are determined to be disabled under the terms of the policy, you’ll receive benefits one month after the elimination period is satisfied. The elimination period is the “waiting period.” No benefits are paid for this period.

How long will I receive my benfits?

You choose the benefit period. The benefit period is the length of time you’ll receive benefits if you are disabled under the terms of the policy and have satisfied the elimination period.

Will my policy be cancelled or my premiums changed?

No. Your policy is non-cancelable and has guaranteed premium rates to age 65. This means we cannot change or cancel your policy, except for non-payment of premiums, or increase the premiums before you reach age 65, regardless of changes in your income, occupation or health. After age 65, you may conditionally renew your policy annually for the rest of your life as long as you are working full-time and meet the requirements. After age 65, if the policy is renewed, your premium will change based on your age at renewal.