Own Occupation Rider
If you become disabled from your regular occupation and choose to work in another occupation, you receive full benefits, regardless of the income you earn from the other occupation.
Non-Cancelable Policy Coverage
Non-Cancelable is a type of policy that guarantees after you place a policy in-force, there will be no changes to your plan’s coverage provisions as long as you continue to pay your premiums on time. The insurance carrier cannot change the provisions of your policy prior to age 65 (or a later age if specified in your policy).
Individual Disability Insurance Plans are most often Non-Cancelable and Guaranteed Renewable, offering you the best guarantee of coverage and rates. Because the rates are “fixed” (meaning that they cannot be increased prior to age 65), this type of plan will typically save you the most money throughout your career in addition to providing the best benefits.
With a Non-Cancelable and Guaranteed Renewable Insurance plan, you’re essentially in the driver’s seat, and you can move forward with the confidence that your plan’s benefits will never change and your rates will never increase unless you decide to change your coverage.
Residual Disability Recovery
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You are considered residually disabled and receive a benefit proportionate to your loss if you:
1.) Lose a percentage of your prior earnings due solely to an injury or sickness and
2.) Are able to perform some, but not all, of the substantial and material duties or
3.) Are unable to work full time in your occupation or
4.) Working in another occupation.
Once you qualify for residual disability benefits, you are guaranteed a minimum benefit of a certain percentage of your maximum monthly benefit for the first 6 months. If your loss of earnings exceeds a certain amount, then 100% of the maximum benefit is paid.
In addition, after recovering from a disability in which you were receiving benefits, and you return to work full-time, recovery benefits are payable as long as you continue:
1.) To have a recovery loss of earnings equal to or greater than 20% of your recovery prior earnings and
2.) The loss is directly and solely due to the injury or sickness that caused your prior disability.
Recovery benefits end when you no longer have a recovery loss of earnings greater than 20% for two consecutive months and will not be paid beyond the maximum benefit period.
After age 65, you may conditionally renew your policy annually for the rest of your life as long as you are currently working at least 30 hours a week and had been the year before and meet the other requirements. If you renew the policy, your renewal premium will change each year based on your age.
Future Benefit Increase
Your coverage will automatically increase every year for six years* to help keep up with inflation without submitting evidence of insurability.
You may also request an additional increase based on your income. This rider can be renewed at the end of six years with financial underwriting.
*If you have the Benefit Update rider on your policy, a Future Benefit Increase offer will not be made in years of Benefit Update options.
Benefit Update
Your coverage can be reviewed every three years to ensure it is consistent with any changes to your income. You can increase your coverage, up to the maximum amount for which you are eligible, every three years based on financial information without providing evidence of medical insurability. You can even request an advanced update, in place of your next scheduled review, if you:
1.) Lose your group long-term disability (LTD) coverage because of a change in employment, or your employer discontinues or reduces the group LTD benefit amount.
2.) Have a certain percentage increase* in sustainable earnings since the later of the policy issue date or last adjustment to increase your total disability benefits.
Presumptive Disability Benefit
You receive a certain amount of funds per month if you permanently lose the power of speech, hearing in both ears, sight in both eyes, or use of both hands, both feet, or one hand and one foot. Benefits start to accrue when the presumptive disability occurs and continue to be paid, as long as the loss continues regardless of your ability to work or earn an income. Benefits will be payable to the end of the benefit period for as long as the loss continues. If the benefit period is to age 65 or greater, the benefit is extended to lifetime.
*Terms of coverage vary by policy and carrier