Most Everyone Would Agree That Price Is Important, However…

In a high limit disability contract, terms and definitions are critical. Here are a few of the important ones that you should be familiar with:

• Own Occupation – does it recognize Specialties and Subspecialties?
• What is the definition of Total Disability?
• Does it use the words “first manifest” as opposed to “first diagnosed”?
• Is it an aggregate policy as opposed a non-aggregate policy?
• What is the recovery period?
• What is the recurrent disability definition?
• Do the underwriters provide a buy-back of mental and nervous conditions exclusions?
• Do the underwriters provide a buy-back of drug and alcohol related exclusions?
• Does the policy provide an automatic increase feature?
• Does the policy allow for portability?
• Does the policy waive doctor’s care if deemed to be of no further value?
• Does the policy have a Waiver of Premium and Grace Period?

 

Cost of Living Adjustment Option (COLA) –

• Is the increase based on an index or is it fixed?
• What is the maximum adjustment in a given year?

 

Residual Disability –

• Does it require a loss of time or duties?
• Can you satisfy the elimination period with residual disability?

 

Other Consideration – (Experience and Service)

• What is the experience of the coverholder and do they have the ability to properly service an account your size?
• How long have they been in business?
• What is their claims experience ?
• Is the coverholder an innovator with new product and service ideas? (leaders not followers)
• Fast proposal service and fast underwriting