What carrier would you use and why?

[NAF1138]

Hi,

I don't do disability. I did several years ago as a captive agent but nothing since 2014 or so, I do life insurance, mostly FE but some advanced planning stuff.

I have a personal friend who asked me to put together some life insurance info for him and his wife and asked if I could get him info on a DI policy too while I was at it. He's 36, makes roughly 300k a year (I'll have firmer details when we meet Friday) has a stay at home wife and 2 small kids. He's in perfect health, I think, and a good height and weight, non smoker. An underwriters dream. He works a desk job at a tech startup. He's not a principle, I don't think, but I will know more Friday. Maybe he's just always been humble, we don't talk work much.

I've been told to look into Guardian and Ohio National for DI. I'm not currently contracted with either, but would be, sort of, willing to pick up a contract I guess. I would also happily refer this to someone in Pennsylvania who would take good care of him.

In my shoes, what would you guys do?

 

[Tahoe Ray]

Hi,

I don't do disability. I did several years ago as a captive agent but nothing since 2014 or so, I do life insurance, mostly FE but some advanced planning stuff.

I have a personal friend who asked me to put together some life insurance info for him and his wife and asked if I could get him info on a DI policy too while I was at it. He's 36, makes roughly 300k a year (I'll have firmer details when we meet Friday) has a stay at home wife and 2 small kids. He's in perfect health, I think, and a good height and weight, non smoker. An underwriters dream. He works a desk job at a tech startup. He's not a principle, I don't think, but I will know more Friday. Maybe he's just always been humble, we don't talk work much.

I've been told to look into Guardian and Ohio National for DI. I'm not currently contracted with either, but would be, sort of, willing to pick up a contract I guess. I would also happily refer this to someone in Pennsylvania who would take good care of him.

In my shoes, what would you guys do?

Quote Guardian, Principal, Standard, and MassMutual.

Make sure that they all are run to at least age 65, have own-occupation riders, residual riders, and any other feature that he deems important (COLA, future purchase options, etc.) after you meet with him.

You'll also want to get an idea of how much coverage he actually needs vs what he can qualify for. At 300k, he should be able to get 13-14/k per month (tax-free). He may not need that much to live on. Even high earning clients get "sticker shock" when they see disability insurance quotes.

You can learn some more basics here: The Top 12 Things That You Should Know About Disability Insurance - Expert, Unbiased Advice

Feel free to ask any additional questions that you may have after your meeting.

 

[NAF1138]

Quote Guardian, Principal, Standard, and MassMutual.

Make sure that they all are run to at least age 65, have own-occupation riders, residual riders, and any other feature that he deems important (COLA, future purchase options, etc.) after you meet with him.

You'll also want to get an idea of how much coverage he actually needs vs what he can qualify for. At 300k, he should be able to get 13-14/k per month (tax-free). He may not need that much to live on. Even high earning clients get "sticker shock" when they see disability insurance quotes.

You can learn some more basics here: The Top 12 Things That You Should Know About Disability Insurance - Expert, Unbiased Advice

Feel free to ask any additional questions that you may have after your meeting.

Thanks!

I'm 100% in research mode right now, so this is handy.

You would say just go off price after I quote? The product is all roughly equivalent?

 

[WinoBlues]

Thanks!

I'm 100% in research mode right now, so this is handy.

You would say just go off price after I quote? The product is all roughly equivalent?

@Tahoe Ray Ray is the guy. However, Disability definition and wording is more important than the price on DI. IMohsoHO

 

[NAF1138]

@Tahoe Ray Ray is the guy. However, Disability definition and wording is more important than the price on DI. IMohsoHO

Agreed. Disability definition is my major concern.

I'm assuming all of the recommendations use the same definition. If not I guess I would want to know what the difference is between them.

 

[Tahoe Ray]

Thanks!

I'm 100% in research mode right now, so this is handy.

You would say just go off price after I quote? The product is all roughly equivalent?

Those 4 carriers are, as long as you add all of the riders the way I described (to even them up).

The other consideration is normally underwriting but it doesn't seem to be an issue here.

Carrier strength, potential exclusions, and other factors all come into play but once you have leveled everything off and have the design that you want, then absolutely look at price.

You would not have the same definitions buying one of these policies from Mutual of Omaha or Assurity (more geared for blue-collar folks anyway).

 

[kpbdy99]

Definitions trump price in DI, especially for high earners. The top-tier carriers already noted are all good options. Most of my DI is going to either Guardian or Ohio National right now.

 

[dondraper]

Hello,

In my opinion, it is best to choose a large carrier that has enough recognition to increase the confidence of your potential buyers. For example, Guardian has been a leader in the individual disability insurance marketplace for the last twenty years usually finishing first or second in total Non-Cancellable DI sales according to LIMRA. Take a look at how Guardian, DisabilityQuotes, and DoctorDisablity all use Guardian or their subsidiary Berkshire to sell to their clients.

Try and get a ballpark of how much coverage the person would need and what riders they can take advantage of - COLA, Optional Riders, etc. and then look at who is licensed in your area to get an accurate quote.

 

[TPetersen]

NAF1138

Financial experts agree that generally about 2/3 of income is needed just to maintain your lifestyle.
Based upon 300,000 of income, your friend should have a replacement benefit of $16,250/month. Can you do less? Of course, but you are short changing the maximum benefits available and short changing the life style as a result of any long term disability.

This may require and excess policy that would layer on top of the base plan you end up recommending as commented on in previous responses.