Accidental disability insurance without current income

Jan 27, 2019

  1. Jim381
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    Jim381 New Member

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    I think I should post this here, even though I am not interested in life insurance. Is there an accidental disability insurance policy that pays a large income benefit for someone without income? As it would not include life insurance, and it would have to involve an accident, I would think someone could write a policy that could give someone $5,000 per month until age 65 or 70 if he/she became disabled from an accident. The policy can have a $0.00 life insurance benefit. I saw some policies that would replace income or pay benefits for two years. I am looking for something that requires the insured to earn nothing and will pay until age 65.
     
    Jim381, Jan 27, 2019
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  2. Tahoe Ray
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    Tahoe Ray Guru

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    No such thing.

    Why would someone earning nothing need 5k/month to retirement age?

    Disability insurance is meant to replace income.

    The only exception I know of is coverage for a stay at home spouse.

    Other than that, all DI policies require earnings to apply (or claim in the instance of a rider).
     
  3. adjusterjack
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    adjusterjack Guru

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    :D
    This site is for all types of insurance and all aspects of the insurance business.

    Lloyds of London might be willing to take a shot at it but with zero earnings you aren't likely to be able to afford the premiums. If I were an underwriter at Lloyds I'd want $10,000 per year premium, payable annually (no payment plans) fully earned from day one of the policy year (meaning no refunds) and I'd write it for "any occupation" so If you became disabled but could sit and answer phones for somebody, you wouldn't get a nickel.:D
     
  4. fed up
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    fed up Guru

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    Disability policies tend to pay a percentage of the earned income, say 66% of the documented monthly. They are in place to supplement through a period of time until you can be employed again. Math is fuzzy on a Monday but 66% of $0 is $0. As Jack indicated, how would you afford any premium without income? If the accident is bad enough you have SSI to fall back on
     
    fed up, Jan 28, 2019
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  5. WinoBlues
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    WinoBlues Guru

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    Last week a former client called for a new life policy on her son. No problem,

    She also wants me to shop out, for the lowest cost, a DI policy. With no more than a week waiting period. Spidy Sence activate! I know she is an administrative asset at a hospital. She is comfortable with a policy that only replaces 60% as her work coverage will also cover 60%. She is putting off her Back surgery for a couple months so she can get enough coverage to get at least 100% of her income.

    We wrote the son's policy.
     
  6. adjusterjack
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    adjusterjack Guru

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    Adverse selection is alive and well.
     
  7. DHK
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    The CLOSEST I could find was Acci-Flex accidental death policy with an accident-only disability income rider.

    However, disability income benefit was limited to $1,800 with a maximum accidental death policy of $350,000... and the income benefit was limited to a 2-year period. Plus, it's limited to a maximum of 60% of the applicant's gross earned monthly income (40% in CA). Obviously, if income is $0... then 60% of $0 = Zero.

    Premium for this program was calculated at just under $40/month.

    You can run your own quote at the bottom of this page under "quick quotes": Assurity Life
     
    DHK, Jan 28, 2019
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  8. WinoBlues
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    WinoBlues Guru

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    Yeah butt, 60% of $0 is better than 0% of $0, right?

    Are there any subsidies available?
     
  9. DHK
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    DHK, Jan 29, 2019
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  10. Golfnut2112
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    Golfnut2112 Guru

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    Have you tried the Government? I know someone getting $1,500 a month and he’s not even disabled, they even threw in free health care, dental and prescription drug coverage.
     
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