Cost of DI and Income

[Tahoe Ray]

The only explanation I can think of is there is something different in one of the illustrations. Probably SIS.

I was curious so I ran a couple of quotes with The Standard (no SIS) for a mortgage broker in NY.

I'm going with a change in occ class due to income. If I max out at 100k on a 3A and max out 60k on a 2A, the 60k policy is more expensive even though the benefits are much less.

Not 30% (40yo male in NY) but it is still more expensive.

 

[eersfan]

The occ class is the occ class regardless of income. Playing games with it will only cause problems if/when the app hits underwriting.

 

[Tahoe Ray]

The occ class is the occ class regardless of income. Playing games with it will only cause problems if/when the app hits underwriting.

Maybe I am misunderstanding what you're saying but there are several professions where income will affect your occupation class. Higher income/more experience=higher occupation class. Same profession.

 

[eersfan]

The only time I have seen a difference in occ class in a given profession is in the medical field where the question regarding performing surgery is asked. Otherwise, with all of my professional clients, MDs, CPAs, and Attorneys, they occ class remains the same other than MDs. I write DI with Mass Mutual, Guardian, and Principal...but maybe there is a difference, but I haven't seen it.

 

[Tahoe Ray]

The only time I have seen a difference in occ class in a given profession is in the medical field where the question regarding performing surgery is asked. Otherwise, with all of my professional clients, MDs, CPAs, and Attorneys, they occ class remains the same other than MDs. I write DI with Mass Mutual, Guardian, and Principal...but maybe there is a difference, but I haven't seen it.

I can't speak to Mass since I've only used them for supplemental. Guardian doesn't normally have income qualifications but Principal has them all over the place for several occupations. Other "white collar" carriers that change occ classes based on income are Standard and Ameritas.

They're normally for sales-type professions. Realtors, outside sales, insurance agents, etc. Folks that can easily make 300k+ but can also make very little, depending on ability.

 

[Caryn Montague]

Eersfan likely hit it on the head...look to the various benefits that were quoted and compare like to like. Unless there were changes in rating, class, benefits, discounts, the premiums would be closer to pro-rated. It's a good opportunity to sit w/ someone who can go through the options, underwriting, ratings, classes, etc.

Happy holidays.