DI carriers are adjusting underwriting and guidelines to address the impact of COVID-19 on new business and DI existing policies.

Here’s how:

• Extended grace periods for late premium payments. While most DI carriers are offering extended grace periods, they are not all the same. If your client is unable to make premium payments on time, contact your DI specialist at Source Brokerage.   We can help you determine the grace period for late payments for your client’s policy.
• No labs or exams for individual disability applicants applying for up to a $10,000 monthly benefit and business overhead applicants applying for up to a $25,000 monthly benefit.
• Extended due dates for policy delivery requirements to place approved DI policies in force. Again, while most DI carriers have extended the due dates for policy delivery requirements, they are not all the same. If your client is unable to make premium payments on time, contact your DI specialist at Source Brokerage.
• Underwriters will work with 2018 tax returns for financial documentation for DI applications. In some cases, underwriters may also request a 2019 P &L or 2020 pay stub.
• Most carriers have extended deadlines to exercise future purchase option (FPO) and benefit increase rider (Standard) or Benefit Update (Principal). If your client receives a notice they can exercise their FPO or their benefit increase rider or benefit update, please contact your Source Brokerage DI specialists to determine your client’s extension date.

Don’t let COVID-19 stop you from taking DI applications. Call us about how to take E-apps.

These are the current COVID-19 DI underwriting and guidelines but they may change.

If you or your client have any questions or concerns about taking an E-app,  an application in underwriting or an existing policy, please Contact Steve Crowe at ext. 222, Ellen Crowe at ext. 223, Brian Hettmansperger at ext. 230, Chris Bussey at ext. 220, or request a quote.