Insurance, like life, can get complicated. The good news is that there’s a way to simplify things. Simplified Issue Disability Insurance is a great option for people who understand the need for paycheck protection but have a hard time finding coverage.
What Is Simplified Issue DI?
Applying for disability insurance usually involves medical exams and blood work. Simplified Issue DI eliminates these tests. Proof of income may not be needed, either.
The lack of medical testing means that turnaround is quick. Policies can usually be issued within 30 days.
Benefit periods of two, five and 10 years are commonly available, and the waiting period will usually range between 30 and 180 days. Rates may be similar to what you’d expect with traditional underwriting.
Is Simplified Issue DI for Everyone?
Simplified Issue DI is a great option for some people, but it’s not ideal for everyone.
The main drawback is that the coverage provided may not be as comprehensive as what your clients could get with a traditional disability insurance policy. Specifically, the monthly benefit may be considerably lower.
Although some income is always better than no income, a large income gap is not ideal. Individuals who have a lot of income to protect and who can get approved through the traditional application process are probably better off doing so.
Who Should Get Simplified Issue DI?
The underwriting process normally required for disability insurance can create barriers to coverage. Simplified Issue DI is a great solution to these common problems.
- Medical Challenges: Simplified Issue DI is ideal for people who can’t get approved for a traditional disability insurance policy due to medical issues. This typically includes people with certain pre-existing conditions.
- Risk Challenges: Those who can’t get traditional DI due to a high-risk occupation or hobby, may be able to secure Simplified DI coverage.
- Time Challenges: Simplified Issue DI can also be a good fit for people who don’t want to deal with a complicated application process. This is perfect for people who are extremely busy or who hate the idea of going through a medical exam to obtain coverage. The fact that proof of income is not needed may also be very appealing to business owners, freelance workers and other individuals who might have a harder time providing the documentation needed under traditional policies.
- Coverage Sufficiency Challenges: Simplified Issue DI can also be an easy way for people to supplement their employer-provided coverage. Because employer-provided coverage is taxable and often has a capped limit, it may be insufficient, especially for high earners. By getting a second Simplified DI policy, workers can close the coverage gap.
If your clients have avoided purchasing disability insurance because it sounds like too much work, talk to them about Simplified Issue disability insurance. Have questions? The DIS Sales team is here help. Contact us anytime for guidance.