Ever wish you had a comparison of the carriers’ disability insurance contracts?
It’s here.
We developed a comparison for our brokers that compares the disability insurance policy features of the five main disability carriers: The Standard, Ameritas, Guardian/Berkshire, Mass Mutual and Principal. Understanding key aspects and differences between disability insurance policies is crucial when selecting a policy that best suits your clients’ needs.
Key Features to Consider:
- Definition of Total Disability: This determines the conditions under which benefits are payable. A “true own-occupation” definition allows your clients to receive benefits if they unable to perform the duties of their specific medical/professional specialty, even if you can work in another capacity. This is particularly beneficial for physicians, ensuring that if they’re unable to practice in their trained specialty due to disability, they still receive benefits.
- Future Increase Options: These riders enable your client to increase their coverage amount as their income grows, without requiring additional medical underwriting. This ensures that their coverage keeps pace with their earning potential over time. It’s important to note that the ability to exercise these options may be limited beyond a certain age.
- Non-Cancellable Policies: Such policies guarantee that the insurer cannot change the terms or increase premiums as long as you continue to pay them. This provides stability and predictability in your clients’ coverage, safeguarding against potential future premium hikes.
In addition, the chart compares the carriers residual or partial benefits, cost of living increases, automatic benefit increases, mental nervous benefits, catastrophic care benefits and student loan protection riders.
Check out these comparison premiums for a 30-year old male:
| The Standard | Ameritas | Guardian (Berkshire) |
Mass Mutual | Principal |
| White Collar Issue & Particiapation Limits | Issue limit $35k Participate with other IDI $35k. Participate with group LTD $35k | Issue limit $30k Participate with other IDI $35k. Participate with group LTD $35k | Issue limit $30k Participate with other IDI $30k. Participate with group LTD $35k | Issue limit $30k Participate with other IDI $35k. Participate with other group LTD $35k. | Issue limit $35k Participate with other IDI $35k. Participate with group LTD $35k |
| 30 -year-old Male Annual Premium (90 day EP, To age 67 BP) | $5K, Non-Can, True Own Occ, Basic residual, 3% COLA, AIB, and BIR | $5k, Non-Can, True Own Occ, Enhanced Residual, 3% COLA, AIB, Benefit Increase, e-discount included | $5K, Non-Can, True Own occ, Enhanced Residual, 3% COLA, and Max FIO | $5K, Non-Can, Own occ, Extended Partial, 3% COLA, BIR, 2 year limitation for mental nervous & substance abuse indicated by * | $5K, Non-Can, own occ, Residual, 3% COLA, AIB, Benefit Update |
| 5A Occ. Class | $1,434.45 | $1,338.38 | $1,993.50 | $1,643.33 | $1,726.41 |
| 4A Occ. Class | $1,836.07 | $1,774.68 | $2,503.88 | $2,074.01 | $2,131.36 |
And a 30-year-old female:
| 30 -year-old Female Annual Premium (90 day EP, To age 67 BP) | $5K, Non-Can, True Own Occ, Basic residual, 3% COLA, AIB, and BIR | $5k, Non-Can, True Own Occ, Enhanced Residual, 3% COLA, AIB, Benefit Increase, e-discount included | $5K, Non-Can, True Own occ, Enhanced Residual, 3% COLA, and Max FIO | $5K, Non-Can, Own occ, Extended Partial, 3% COLA, BIR, 2 year limitation for mental nervous & substance abuse indicated by * | $5K, Non-Can, own occ, Residual, 3% COLA, AIB, Max FIO/Benefit Update |
| 5A Occ. Class | $2,579.66 | $2,333.98 | $3,117.38 | $2,484.560000 | $3,059.15 |
| 4A Occ. Class | $3,301.88 | $3,105.34 | $3,832.51 | $3,302.21 | $3,776.74 |
Contact Steve Crowe at ext. 222 to request your own complete copy of the contract comparison of the five major disability income carriers insuring white collar and medical professionals.
