Although our industry has trouble keeping up with the technological realm, changes in the product sector happen all the time. These changes can have significant advantages and disadvantages—and the changeover happening to one of our biggest carrier’s main disability insurance products is a huge deal. Basically, we're trading great features and low rates for plan flexibility. 🤷
You only have until the end of January to get applications in for the old products. Let’s call them Products 1 and 2. Why is that important? This is the last time for your clients to try to get these one-of-a-kind DI plans in place! There will be nothing like them again.
Here are some features we’re losing:
Own occupation definition included in base policy (offered as rider in new product)
Unlimited mental disorder and/or substance abuse benefits (new product limits to 2 years)
Catastrophic disability benefit rider (rider is weakened to presumptively disabled in new product)
100% partial disability benefit for 6 months in base policy (offered as rider in new product and reduced to 50% for 12 months)
Compassionate / family care benefit (not available at all with new product)
Future Purchase Option rider (new product has more restricted Benefit Increase rider)
Indexed Cost of Living Rider (no longer offered to Classes A and B in new product)
Business owner discount 15% (new product lowered to 10%)
Unlimited mental disorder and/or substance abuse benefits
The lowest rates for excellent disability insurance coverage
Plus, Simplified Underwriting will no longer be offered 😨 All applicants will have to prove financial documentation.
However, below are unique features of the new plan, Product 3:
Newly added 365 elimination period
Suspension of policy during military service (up to 5 years)
New benefit increase rider (replacement for FPO)
Student loan rider
In a nutshell, the carrier is doing away with 1) one product that offers robust base policy features combined into one package at a reasonable price and 2) another product that offers the bare minimum policy for those who need some coverage at a really good price … and replacing both products with one that has fewer base features but a lot of extra options for extra premium. Like a build-your-own pizza where each topping is $1.00 extra. Some folks will penny-pinch and go for just cheese and others will splurge for the meat lover's fix. 🤷
Contact us for quotes while you still can!