Simplified Issue Disability Income is an individual guaranteed-renewable disability income insurance policy with simplified application and issue processes. It's ideal for individuals in the lower to upper-middle income markets
Features:
Simple and short application process
Simple issue process typically within days on qualified applications,
Two broad occupational classes-p rofessional/office workers and skilled/unskilled manual workers
Simplified underwriting No medical exam
Complications of pregnancy are covered as an illness
Benefit Period –Six months, 1 year and 2 years
Issue Ages- 18 through 59
Renewable – Simplified Issue Disability is guaranteed renewable to age 67. As long as the premiums are paid, the policy cannot be canceled. However, the premium rates can be changed for all policies in a class. If the insured is employed on a full-time basis on each renewal date after age 67, the policy can be renewed up to age 70. The benefit period is limited to one year.
Elimination Waiting period- The number of consecutive days that an insured must be totally disabled before the monthly benefit becomes payable. The elimination periods available are 30, 60, 90 and 180 days.
Available Monthly Benefit Amount
Minimum: $300
Maximum: 60 percent of monthly income up to $2,500
(Maximum 60 percent of monthly income). Benefits will be reduced dollar for dollar up to 50 percent by the amount of social insurance (Social Security Disability, Workers’ Compensation, Government Disability and Railroad Retirement and Disability
Employment Requirements- 30 + hours week
Simplified Application and Underwriting Process
Simple application process can be completed by telephone. Medical records and prescription history checks will be ordered. Telephone interviews will be ordered on applicants age 30 and above if the monthly benefit is $2,001+ per month or if the carrier on a case-by-case basis needs more details.
Pregnancy/ Maternity- a normal pregnancy is not considered a total disability. However, a total disability resulting from conditions medically classified as “complications of pregnancy” is covered. See policy for complete details
Pre-Existing Conditions- If total disability begins within 12 months of the issue date as the result of a pre-existing condition not disclosed on the application, benefits are not payable
Occupational Class-
Class I: Professional/office occupations…may have activities that involve laboratory, technical, supervisory or service work: biologist, accountant, sales clerk, clergy, horticulturist, pharmacist, architect,ect
Class II: Skilled and unskilled manual occupations…may involve operating machines, heavy manual labor and risks of accidents: electrician, plumber, farmer, roofer, painter, crane operator, furniture mover, beautician, custodian, auto mechanic,ect
Waiver of Premiums
Premiums will be waived by the carrier from the end of the waiting elimination period and will continued to be waived until the end of the disability or the benefit period expires.
