Most Everyone Would Agree That Price Is Important, However…
In a high limit disability contract, terms and definitions are critical. Here are a few of the important ones that you should be familiar with:
- Own Occupation – does it recognize Specialties and Subspecialties?
- What is the definition of Total Disability?
- Does it use the words “first manifest” as opposed to “first diagnosed”?
- Is it an aggregate policy as opposed a non-aggregate policy?
- What is the recovery period?
- What is the recurrent disability definition?
- Do the underwriters provide a buy-back of mental and nervous conditions exclusions?
- Do the underwriters provide a buy-back of drug and alcohol related exclusions?
- Does the policy provide an automatic increase feature?
- Does the policy allow for portability?
- Does the policy waive doctor’s care if deemed to be of no further value?
- Does the policy have a Waiver of Premium and Grace Period?
Cost of Living Adjustment Option (COLA) –
- Is the increase based on an index or is it fixed?
- What is the maximum adjustment in a given year?
Residual Disability –
- Does it require a loss of time or duties?
- Can you satisfy the elimination period with residual disability?
Other Consideration – (Experience and Service)
- What is the experience of the coverholder and do they have the ability to properly service an account your size?
- How long have they been in business?
- What is their claims experience ?
- Is the coverholder an innovator with new product and service ideas? (leaders not followers)
- Fast proposal service and fast underwriting