Disability Income

Disability Insurance Product Guide 12023

Sample Individual Disability Income Policy Annual Premiums

AGE	MALE	FEMALE
30	$275 – $330	$500 – $610
35	$340 – $405	$570 – $680
40	$400 – $480	$640 – $775
45	$490 – $590	$680 – $810
50	$580 – $700	$715 – $860
55	$590 – $720	$720 – $860
60	$660 – $790	$680 – $820

These rates are based on the following: Non-Cancellable policy, $1000 monthly benefit, 90 day elimination period, payable to age 65, residual, 3% Cost of Living riders, and future increase options. These are Colorado rates with a white collar risk factor.

Please note, the Cost of Living rider is not included in the age 55 and 60 premiums

Multi-Life Premium Discounts: Females can qualify for up to 30% premium discount if 3 or more employees apply for same level coverage at the same time. Males would receive up to a 10% discount.

True Group LTD: Low-cost group DI also available to your business owner clients and their employees

What are the types of disability insurance?

There are two types of disability policies: Short-Term Disability (STD) and Long-Term Disability (LTD):

1. Short-Term Disability policies (STD) have a waiting period of 0 to 14 days with a maximum benefit period of no longer than two years.
2. Long-Term Disability policies (LTD) have a waiting period of several weeks to several months with a maximum benefit period ranging from a few years to the rest of your life.

Disability policies have two different protection features that are important to understand.

1. Non-cancelable means the policy cannot be canceled by the insurance company, except for nonpayment of premiums. This gives you the right to renew the policy every year without an increase in the premium or a reduction in benefits.
2. Guaranteed renewable gives you the right to renew the policy with the same benefits and not have the policy canceled by the company. However, your insurer has the right to increase your premiums as long as it does so for all other policyholders in the same rating class as you.

In addition to the traditional disability policies, there are several options you should consider when purchasing a policy:

• Additional purchase options – Your insurance company gives you the right to buy additional insurance at a later time for an additional cost.
• Coordination of benefits – The amount of benefits you receive from your insurance company is dependent on other benefits you receive because of your disability. Your policy specifies a target amount you will receive from all the policies combined, so this policy will make up the difference not paid by other policies.
• Cost of living adjustment (COLA) – The COLA increases your disability benefits over time based on the increased cost of living measured by the Consumer Price Index. You will pay a higher premium if you select the COLA.
• Residual or partial disability rider – This provision allows you to return to work part-time, collect part of your salary and receive a partial disability payment if you are still partially disabled.
• Return of premium – This provision requires the insurance company to refund part of your premium if no claims are made for a specific period of time declared in the policy.
• Waiver of premium provision – This clause means that you do not have to pay premiums on the policy after you’re disabled for 90 days.