DISCUSSION WATCH -- Help us keep these boards free of abusive language. Please report offending messages or users to: FPDiscussionWatch@SourceMedia.com
Financial Planning
Go to Discussions
Discussion: Re: Disabilty Insurance
Posted by Lawrence B. Keller, CLU, ChFC on 09/16/2005
As you already know, Berkshire (Guardian) would offer her an additional $5,000 month with a true "Own-Occupation" definition of disabiltiy for five years, Modified "Own-Occupation" thereafter.
Standard Insurance Company (Portland, OR) would normally issue a policy with a true "Own-Occupation" definition of disability to age 67 (based on her age of 40). However, at this point they only issue and participate up to $10,000 month on an individual basis.
Therefore, at this time, they would not allow her to purchase any additional coverage. That being said, they have recently introduced a new policy series (The Protector+) that will participate up to $15,000 with another company (or companies) on an individual basis. However, it has not yet been approved in Tennesse but should be in the future (for your sake, hopefully the near future).
Your other choice would be to use MetLife's policy which can be purchased with a "Transitional Your Occupation" defintion of disabiltiy.
This would allow her to work in another occupation with no disability benefit offset until her DI benefits from NML plus MetLife plus her new occupation exceeds her prior income.
Simply put, if she earns $600K and would receive $180K form NML and MetLife, she could earn up to an additional $420K in another occupation and still receive her full disabiltiy benefits. I'm not sure if the rider is approved in TN but could check it out for you on Monday.
Finally, she might also consider a policy with a Modified "Own-Occuaption" defintion like Principal's. The more she earns, the more it acts like an "Own-Occ" policy. If she has a loss of 75% or more of her income, she would receive full benefits anyway. You might want to ask her if she can no longer perform surgery, what other job can she do that would allow her to earn anything close to $600K. Berkshire's policy is still better, but also more expensive.
The Lloyd's policy is a good idea as it would allow her to purchase up to a total of 65% of her income in conjunction with other DI companies. However, she should buy more traditional coverage first - as if she doed not, other companies will look a that coverage and eill not issue her any additional traditional coverage.
Hope this helps. If you want to talk, feel free to call me at 516-677-6211 and I can give you more detailed explanations and share some other ideas with you.
Larry
Reply To This Message | Flat View
Follow Ups Author Date
Disabilty Insurance new
bluemarlin08 09/16/2005
Re: Disabilty Insurance new
Chad L. Starliper, CFP, ChFC 09/16/2005
Re: Disabilty Insurance new
bluemarlin08 09/16/2005
Re: Disabilty Insurance new
anonymous 09/16/2005
Re: Disabilty Insurance new
Lawrence B. Keller, CLU, ChFC 09/16/2005
Re: Disabilty Insurance new
Lawrence B. Keller, CLU, ChFC 09/16/2005
Re: Disabilty Insurance new
bluemarlin08 09/16/2005
Re: Disabilty Insurance
Lawrence B. Keller, CLU, ChFC 09/16/2005
Re: Disabilty Insurance new
bluemarlin08 09/16/2005
Re: Disabilty Insurance new
Chad L. Starliper, CFP, ChFC 09/17/2005
Re: Disabilty Insurance new
G Stevens 09/21/2005
Thomas McLaren
Lead Systems Analyst
IT Business Solutions
............................................................
TheStandard
StanCorp Financial Group, Inc.
900 SW 5th Ave., C12C
Portland, OR 97204-1235
Telephone (971) 321-6153
Cell (503) 309-2555
Fax (971) 321-8005
No comments:
Post a Comment