New Disability Income Underwriting Enhancements
Protecting your clients’ income is a key piece of a sound financial plan. Underwriting enhancements can help you meet their needs with higher coverage levels. Changes effective 3/1/18, available in illustration software 4/1/18.
20% Business Owner Income Enhancement
Your business owner clients will now have their net income increased by 20% for purposes of determining base policy and maximum issue limits, subject to a monthly benefit increase of $1,500. Business owners who have at least 10% ownership and actively work in the business are eligible for the income enhancement.
The Business Owner Income Enhancement is just one of many advantages for business owners:
- Business Owner Upgrade: Upgrades the insured's occupation by one class, qualifying them for lower premiums and expanded coverage options. To qualify, business owners must have at least 10% ownership, be self-employed for at least 2 years, and have a net income of at least $30,000. Medical professionals, farmers and roofing contractors are not eligible for the upgrade.
- 15% Premium Discount for Multi-Life DI apps: Provides a 15% discount in premiums for 3 or more issued disability income applications from the same employer/employee group at the same time. Not available in all states.
Government Employee Underwriting
Enhanced disability income underwriting guidelines for federal and state government employees. In order to maximize coverage for higher income earners without over-insurance, the maximum issue limits by income will now apply to federal and state government employees, with an assumed existing employer-provided coverage offset for federal employees of 40%, and 60% for state employees. Other forms of existing coverage will also be an offset to the maximum limits. Federal and state employees who meet the following criteria will qualify for these new guidelines:
- Age 55 and under
- 10 years or less federal or state service
