Disability Insurance Policies Are NOT Created Equal
As you do your due diligence for your clients and weigh the pros and cons of disability insurance products from various carriers, be mindful that not all income protection plans are created equal. Policy wordings, definitions and claims viability can vary drastically amongst domestic disability carriers as well as throughout the venerated Lloyd’s of London marketplace.
Even differing sources from within the Lloyd’s market have their own policy chassis which will most likely include varying definitions, limitations, exclusions and benefit structures.
Over the years, Petersen International has been able to examine and scrutinize policy specimens from numerous underwriting companies. There are some alarming weaknesses in disability income insurance policies out there that are being actively marketed and sold to consumers every day.
Serious holes and shortcomings in policy wordings can affect the performance and negate the original intent of the financial protection of a disability plan. These weak points should be brought to the attention of discerning brokers and agents and to their trusting clientele.
You owe it to yourself and to your clients to read the fine print when comparing policies of any disability carrier. Pay special attention to the policy definitions, special clauses and limitations. A disabled client who owns a DI policy with inferior wording will not be a satisfied customer.
If you have any questions about disability policy wordings and the potential economic pitfalls, don’t hesitate to reach out to our DI department at (800) 345-8816.