Speed up your disability income protection underwriting
Anyone who has submitted a disability case and seen it through underwriting knows that the criterion for disability income insurance is different than life insurance.
Most generally, the client provides information about their health, occupation and income which is then evaluated to obtain a disability income offer. The process can take longer than most of us want.
How would you like to bypass all the details of underwriting, sell more cases and develop an income stream that stays on the books for a good long time?
Introducing Group Disability and Guaranteed Standard Issue Disability combo.
How does it work?
Group Disability
Start with introducing group disability to your clients. This can be done on groups as small as two employees. Most generally group is guaranteed issue, with current health conditions managed by a pre existing condition clause. After 12 months on the plan most carriers cover health issues that were present at the time of policy issue. The larger the group, the better in this case.
The group coverage will most generally offer income protection of 60% of the employee’s pre disability income up to a monthly maximum. If their employer already offers group coverage, ask if you can review it to see if they are getting the most appropriate solution to their company’s needs. The Allegis DI team is glad to assist you with the review.
A company census will assist in obtaining quotes, along with information about any existing plan.
Guaranteed Standard Issue Disability
Guaranteed Standard Issue (GSI) disability is individual disability coverage sponsored by the employer. It is individual, portable coverage purchased at a 20% discount. The underwriting consists of 3 basic health questions on the application. There are no paramed exams or health screening interviews. Income is verified via a census from the employer.
GSI is designed to benefit white collar employees. Most generally it is used as an executive benefit.
Requirements are that there must be a minimum of 5 employees, class 3A and above. Employer sponsored, employer paid in most cases. Send the Allegis DI team a census of these people along with information regarding their underlying group coverage. Send this to the Allegis DI team. A quote will be returned to you promptly. From there, the DI team will assist you with implementation.
Once implemented the results will be that your client will be coverage with group coverage of 60% of income, up to the maximum monthly benefit PLUS an additional amount of individual coverage of approximately 15%. Depending upon income, this may come close to replacing the employee’s pre disability take home pay.
For more information, see the following:
Here at Allegis we have been implementing this concept for the past quarter and have several of these combo cases in underwriting or issue right now. The concept works. Please call a member of the Allegis DI team for help with your case.