Workers Comp and DI ?

[Mike Siegal]

Hi Friends,

Had a question regarding "How" DI works with Workers Comp insurance.

• SCENARIO: Lets say some a owner of a Welding company PAYS AND DOCUMENTS his income (pays ALL taxes associated to uncle sam for his income). He's 39 and purchased a DI policy with benefits to age 65. He gets injured and incurs a permanent disability.
• QUESTION: Does he get the full 60% of DI he paid for or is it the difference between workers comp and DI?
• QUESTION 2: Why would someone purchase a DI policy if they are getting workers comp?
• QUESTION 3: Should he even file for workers comp?

Thanks very much for your input...



.

 

[VolAgent]

Most business owners exclude themselves from worker's comp, and depending on the size of the business he may not even have worker's comp. I have never see DI offset for worker's comp. Some do for Social Security, it just depends on the policy and riders. So he would likely receive all worker comp benefits plus full benefits from the policy. Finally, many injuries do not occur at work, and worker's comp would not cover an illness unless caused by work.

 

[Mike Siegal]

Most business owners exclude themselves from worker's comp, and depending on the size of the business he may not even have worker's comp. I have never see DI offset for worker's comp. Some do for Social Security, it just depends on the policy and riders. So he would likely receive all worker comp benefits plus full benefits from the policy. Finally, many injuries do not occur at work, and worker's comp would not cover an illness unless caused by work.

Thanks Vol (newby here),

I just got off the phone with Assurity and the Rep Bruce went into detail about HOW assurity would not PAY a greater combination between the two. IN FACT he went into detail about the riders they have (i guess there is a WC rider) that would lower their premium (or raise it), based on a WC settlement or payout.

(IOW, they would only pay the "difference" between what WC paid and his policy would allow up to 60%).

EX. Insured is qualified up to 5k per mth. WC pays 2k---Assurity would only pay.


?

 

[VolAgent]

Thanks Vol (newby here),

I just got off the phone with Assurity and the Rep Bruce went into detail about HOW assurity would not PAY a greater combination between the two. IN FACT he went into detail about the riders they have (i guess there is a WC rider) that would lower their premium (or raise it), based on a WC settlement or payout.

(IOW, they would only pay the "difference" between what WC paid and his policy would allow up to 60%).

EX. Insured is qualified up to 5k per mth. WC pays 2k---Assurity would only pay.


?

I haven't seen that before, but I don't do much DI. It still doesn't change the fact there are so many other ways to become disabled.

 

[Mike Siegal]

I haven't seen that before, but I don't do much DI. It still doesn't change the fact there are so many other ways to become disabled.

YEAH MAN....well if you make the calls, you can find out A LOT of information that the avg. agent doesn't KNOW.

Maybe someone who does know will chime in...thanks anyway!

~

 

[adjusterjack]

A lot depends on the terms and conditions of the DI policy and what the client is willing to pay for.

Any agent selling DI policies should get sample copies of those policies so he knows what he is selling and not just rely on what he is being told on the phone.

 

[VolAgent]

A lot depends on the terms and conditions of the DI policy and what the client is willing to pay for.

Any agent selling DI policies should get sample copies of those policies so he knows what he is selling and not just rely on what he is being told on the phone.

This too. In fact, many times the rep hasn't read the policy and isn't exactly sure how it works either.

I went and looked at the product from Assurity. It looks like Mike is looking at the Simplified product and it does include worker's comp as social insurance benefits, which can reduce the DI benefit by up to 50% by the amount of social insurance benefit received. Now, I am looking at the sample, so there may be some state specific variations, but depending upon the amount of worker's comp received, the total benefit may still exceed the amount of DI purchased.

For instance, if the monthly DI benefit is $5,000, but workers comp is $3,000, then it would be $2,500 (half of $5,000) plus $3,000 for a total of $5,500.

Mike, you should look at the other product, Century DI+, and see if he would qualify. I did not notice any offset in that policy.

Again, there may be some state specific changes, so look at those as well.

 

[scagnt83]

You need a better product most likely.

This is the SIS Rider. (social insurance substitute)

It reduces your policy benefits by whatever government benefits you receive.

Assurity will only do Base Coverage up to a certain amount. The rest of the income must be insured via the SIS Rider.

Carriers who offer a more comprehensive policy, such as Guardian, Principal, Ameritas, Standard, Mass, ON; will not require the use of the SIS Rider to Insure the entire income. However, they will often require it for lower more risky Occupation Classes.

Call Guardian and have them compare your illustration with a comparative one of theirs. Then you will get the full picture.

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This too. In fact, many times the rep hasn't read the policy and isn't exactly sure how it works either.

Yep. And all they have to do is read the Illustration. It most always tells you all the relevant info you or the client would need to know.

 

[Mike Siegal]

This too. In fact, many times the rep hasn't read the policy and isn't exactly sure how it works either.

I went and looked at the product from Assurity. It looks like Mike is looking at the Simplified product and it does include worker's comp as social insurance benefits, which can reduce the DI benefit by up to 50% by the amount of social insurance benefit received. Now, I am looking at the sample, so there may be some state specific variations, but depending upon the amount of worker's comp received, the total benefit may still exceed the amount of DI purchased.

For instance, if the monthly DI benefit is $5,000, but workers comp is $3,000, then it would be $2,500 (half of $5,000) plus $3,000 for a total of $5,500.

Mike, you should look at the other product, Century DI+, and see if he would qualify. I did not notice any offset in that policy.

Again, there may be some state specific changes, so look at those as well.

Ok...thanks Vol.

So the Century DI product might be a better choice (i assume its also from Assurity). I'm a little disappointed in their Rep Bruce. He was a little confusing but, i'll check into that other product as well. Thank you.

You need a better product most likely.

This is the SIS Rider. (social insurance substitute)

It reduces your policy benefits by whatever government benefits you receive.

Assurity will only do Base Coverage up to a certain amount. The rest of the income must be insured via the SIS Rider.

Carriers who offer a more comprehensive policy, such as Guardian, Principal, Ameritas, Standard, Mass, ON; will not require the use of the SIS Rider to Insure the entire income. However, they will often require it for lower more risky Occupation Classes.

Call Guardian and have them compare your illustration with a comparative one of theirs. Then you will get the full picture.

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Yep. And all they have to do is read the Illustration. It most always tells you all the relevant info you or the client would need to know.

Thank you scagt...!

 

[VolAgent]

Ok...thanks Vol.

So the Century DI product might be a better choice (i assume its also from Assurity). I'm a little disappointed in their Rep Bruce. He was a little confusing but, i'll check into that other product as well. Thank you.



Thank you scagt...!

Yes, it is also an Assurity product. I would probably look at other companies as well. I have no idea if your guy will qualify based on occ class, I just saw it is their better DI product.