| Ages/Income |
20-30 / $30k+ |
30-40 / $40k+ |
40-50 / $50k+ |
50-59 / $60k+ |
Target Markets
Red Flags:
Lots of student loans
Working and yet has no employer plan
Medical Field (including students)
Highly dependent on monthly income |
Self Employed
Blue Collar
(w/o employee plan) |
Business Owners
High Income Professionals
(Doctors, Lawyers, etc.) |
Business Owners
High Income Professionals
(Doctors, Lawyers, etc.) |
Business Owners
High Income Professionals
(Doctors, Lawyers, etc.) |
| Type of Coverage |
Individual |
Individual & Buy/Sell Business Overhead |
Individual & Buy/Sell Business Overhead |
Individual & Buy/Sell Business Overhead |
| Monthly Benefit Amount: Any amount up to 60% of their income. |
Maximum |
Maximum |
Maximum |
Maximum |
| Elimination Period: Number of days client must be disabled in order to receive benefits |
30-90 Day
These clients tend not to have adequate emergency funds and need benefits sooner |
60-90 Day |
90 Day |
90 Day |
| Benefit Period: Number of years clients will receive benefits if disabled |
Maximum = Age 65
(Blue Collar Max = 5 years) |
Maximum = Age 65
(Blue Collar Max = 5 years) |
Maximum = Age 65
(Blue Collar Max = 5 years) |
Maximum = Age 65
(Blue Collar Max = 5 years) |
| Cost of Living Protection: Increases benefits annually after one year on claim. |
Maybe = 3% |
Yes = 3%
Professionals = 6% |
Yes = 3%
Professionals = 6% |
NO |
| Future Purchase Option: Allows insured to buy more coverage as income increases. |
Yes = Maximum |
Yes |
Yes |
Not Available |
| Residual: Pays some benefits if the client is able to work but illness causes greater than 20% drop in income. |
Yes |
Yes |
Yes |
Yes |
| Non-Cancelable: Locks in premiums for duration of policy. |
No |
No
Professionals = Yes |
No
Professionals = Yes |
No
Professionals = Yes |
| Own Occupation: Client is considered disabled if you are unable to perform their regular occupation. May receive benefits while working in another occupation. Requires use of Non-Can rider. |
No |
No
Professionals = Yes |
No
Professionals = Yes |
No
Professionals = Yes |
| Notes |
Compare Employer: If coverage is substantial it is not neccesary |
Compare Employer: If coverage is substantial, consider LTC. |
Compare Employer: If coverage is substantial, consider LTC. |
High Net Worth Clients should buy LTC instead of, or in addition to DI. |
| Underwriting Issues |
1. Counseling or use of anti-depressants in the past 24 months requires impaired risk products.
2. Hazardous job duties and hobbies (sky diving, aviation, rock climbing, hang gliding, etc.) |
