Client is on LTD/IDI claim?

[Caryn Montague]

Most of us know that definition of "disabled" in disability plans and policies often changes 2 or 5 years into claims. It is common to transition from language that pays benefits if claimant cannot do his own occupation to language that pays benefits if she cannot do ANY occupation.

But what about the life insurance, AD&D, pension/retirement/savings plans, loans against plans, cancer or dread disease plans, LTC, dental, health insurance, etc. When waiver of premium language is present, it varies from one plan and policy to the next. One claimant's portfolio can have myriad definitions and high bars to reach in order to qualify each benefit to be on a waiver.

Think about it....You worked very hard to ensure your clients' "hidden paychecks" were protected in the event of disability. However, will their life insurance continue in force? Will their retirement distribution, taken solely because they were waiting for their LTD and SSDI to kick in, impact their future after first being penalized for early distribution?

Protect your clients' entire benefits portfolios. Happy holidays.

 

[scagnt83]

What is your point? Unless you own an insurance carrier, you have no solution for this.

Most carriers limit Own-Occ coverage on Waiver of Premium Riders (on non DI products) to 2-5 years. I think there is only 1 or 2 life carriers that allow Own-Occ for longer than 5 years.

Also, if a client has proper DI insurance, they should have sufficient income to pay their bills... including their insurance premiums. And there are a plethora of choices that provide Own-Occ until retirement on a DI policy.

Obviously it would be ideal for the polices to be on waiver in the event of a disabilty. But if you have proper DI coverage, the issue of Own-Occ vs. Any-Occ on a WP Rider is not a primary concern.

 

[adjusterjack]

When waiver of premium language is present, it varies from one plan and policy to the next.

The solution to that is read and understand the policies. Do you do that? Do you make sure the client does it?

 

[Caryn Montague]

The solution to that is read and understand the policies.

That is precisely why I have been writing a great deal on these issues. Not only do people not know if they are reading the right iteration of policy or copy or plan documents, they do not know what to make of the language once they do.

My point, in the original post, was to remind people that not all definitions are created equal, that definitions often change during the life of a claim, and, most importantly, to remember that other benefits (life insurance, CI, LTC, retirement plans, etc.) all have different definitions and different windows in which to apply for the waivers or benefits. Unless someone, such as yourselves, helps your clients review their benefits, they will likely lose some.
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