Applicants must be currently working.
Applicants applying for disability income coverage are to be actively working a minimum of 30 hours/week at their regular occupations for the past year. The proposed insured’s occupation/duties should always be described in as much detail as possible on the application. Job titles are not always indicative of the skills, training or education necessary, or of the job’s physical requirements. Occupational classifications should be used for applicants on the Executive Blue Collar Plan only. Basically, what we are looking for is the hard-working, diligent persons who may be uninsurable in the standard market, but who are able to work full-time without losing time from his/her profession or job. Do not solicit applications from someone who is currently disabled, unemployed due to health reasons, or whom you have reason to believe is suffering from a terminal illness.
Key Information Required
- Medical History - Be as complete as possible. Include any pertinent information regarding applicant’s health history as well as names and addresses of physicians and hospitals consulted. To assist us in the pre-underwriting process,you can look-up doctor’s names, addresses and telephone numbers at the AMA’s On-Line Doctor Finder. Since DI applications are underwritten on a non-medical basis, please provide us with the reason why specific doctors were consulted and the dates consulted. If possible, have your client obtain copies of medical reports, test results or physician’s letters. With your help, we can reduce the biggest delay in the underwriting process . . . getting APS reports from doctor’s offices. The best reference for medical information on specific conditions or drugs is located at MedicineNet.com.
- Income Verification - W-2’s or the most recent Tax Return must be filed with the application in order to support the requested benefit amount. We will insure up to 60% of reported income earned by the applicant’s own occupation. This means that income from investments or limited partnerships (passive income under IRS rules) are excluded from the calculation. In the event that the applicant has existing disability income coverage, we will insure up to 60% of earned income from all sources combined. If the applicant has filed a Joint Tax Return, we will require W-2’s, Schedule C’s or K-1’s of the applicant, not the spouse. Schedule E income will only be considered if the applicant is actively involved in the business activity and is subject to adjustments to the benefit calculation.
- Self-Employed - All applicants who are self-employed and using their residence as their primary place of business should be written on graded DI plans only. Generally, the applicant must have been in business for at least one-year to be considered for disability income coverage. Earned Income from a business is based on the net profit of the business plus any salary or draws taken out of the business by the applicant.
Considered Medical Conditions
It is impossible to say that we can accept each and every risk. Subject to underwriting review and final approval, some risks considered are listed below:
|Adhesions||Cholesterol (High)||Coronary Occlusions||Genitourinary Disorder||Ileitis||Nervous Disorders||Rheumatic Fever|
|Alcoholism||Concussion||Duodenal Ulcer||Gall Bladder Disorder||Kidney Stones||Pernicious Anemia||Snycope or Vertigo|
|Angina Pectoris||Cerebral Vascular Acc||Coronary By-Pass||High Blood Pressure||Meniere’s Disease||Multiple Sclerosis||Transurethral Resection|
|Arthritis||Cystitis||Eye Disorder||Gout||Nephritis||Polyps||Tumors or Cysts|
We are well aware that sub-standard business may have a high claim ratio. However, by carefully underwriting the applicants, utilizing the graded benefits and rated premiums, many problem cases can be insured. However, the following occupations must be excluded from consideration due to the high risks:
|Car Washers||High Window Cleaners||Oil & Natural Gas Workers||Structural Iron Riggers|
|Coal Miners||Judo & Karate Instructors||Racing Drivers||Taverns (Non-Mgmt Personnel)|
|Domestics||Kitchen Help||Rodeo Riders||Test Pilots|
|Explosive Handlers & Fireworks Manufacturers||Migratory Workers||Steeple Jacks||Tree Toppers|
|Furnace Personnel||Powerline Splicers||Street Vendors||Tower Erectors|