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