A producer called the other day trying to find a solution to a disability insurance problem, a new problem created by the current economic recession. Here is how the story went:

A business firm that is trying hard to survive the country’s economic downturn decided to cancel its Group Long Term Disability Plan in an effort to save money. At the same time the management realized the importance of disability insurance for the employees, so they asked their broker to find a voluntary individual disability plan that could be made available to their employees. Surprisingly, none of the major disability carriers were willing to offer a plan to employees of a firm that was having financial difficulties. The concern was offering employees a policy only to have them laid off or become unemployed, increasing the temptation to feign disability as a source for money.

Petersen International Underwriters looks at risks like this differently. Why would we penalize employees for something over which they have little or no control? Readers who have some clients facing similar plights might want to discuss these opportunities with them.

Our job is to try to help people with their disability insurance needs and to underwrite for human needs, not increase their apprehensions about the economy.