Disability

Call FargoLIFE on demand at 701.318.0908 to receive a customized plan for personal assistance.

How great is the risk of disability? Can Disability Insurance cover my mortgage payments?

The risk of disability is significant. Every year, one person in 105 dies; one home in 88 catches fire; one car in 70 has an accident; and one person in eight suffers disability. Typical Short Term Disability and Long Term Disability benefits only apply to base compensation and are fully taxed, leaving most people seriously underinsured. Disability Insurance fills the gap and can protect mortgage payments. According to the United States Saving and Loan Association, less than three percent of all mortgage defaults occur because the bread winner dies with inadequate life insurance. Nearly half (48 percent) of defaults occur because the bread winner becomes disabled and has inadequate income insurance.

What is the Own-Occupation definition?

Own-Occupation (Own-Occ.) is the most important definition when insuring someone in a highly specialized occupation. For example, if a surgeon can no longer perform surgical procedures but can return to work full time as a general practitioner, he still qualifies for full disability benefits under the Own-Occ. provision.

What determines disability?

Many companies define disability under the Own-Occ. definition as “ … because of injury or sickness: You are unable to perform the substantial and material duties of Your Regular Occupation; and you are under the care of a Physician appropriate for Your Injury or Sickness.”

What are residual benefits?

Residual benefits are “partial” benefits. Policies pay residual benefits whenever income is reduced by 20 percent or more with a loss of time or duties due to disability. For example, if a policyholder earned $50,000 annually, was disabled and then returned to work earning $25,000, she would have a 50 percent loss of earnings, and thus qualify for a 50 percent residual benefit.

What percentage of income can be insured?

Benefit levels are determined by each carrier’s Issue and Participation Limit. Benefits normally protect 60 to 70 percent of a person’s income. Limits prevent “over-insurance” because benefits are typically tax free. Most companies issue benefits to a maximum cap of $15,000 per month. In cases of highly compensated applicants, this represents a low percentage. However, creative solutions are available and we regularly place coverage for highly compensated individuals of up to 75 percent of compensation, with no monthly limit.

Which waiting period is right for you?

The waiting period (or elimination period) is the number of days that must elapse between the time of total disability and the time benefit payments begin. Choices range from a 30, 60, 90, 180, and 365 days.To determine the best waiting period, ask yourself about the type and amount of funds you have readily available for income in the event of disability. Another consideration is cost. Policies with shorter elimination periods have higher premiums.

What about physicians and previously declined applicants?

Physicians:

  • For physicians and many other specialists, the Own-Occ. definition is one of the most critical policy elements. If a surgeon can no longer perform surgical procedures but can return to work full time as a general practitioner, he still qualifies for full disability benefits under the Own-Occ. provision.
  • Disability Insurance offers the true Own-Occ. definition for all physician specialties.
  • Ask FargoLIFE to help you.

Previously Declined:

  • We tell previously declined applicants “YES” with our simplified issue Disability Insurance. 98 percent of applicants are approved and issued with:
  • No exam, blood work, HOS or inspection report
  • Own-Occ.definition
  • 30, 60, 90, or 180 day waiting periods
  • Two, five and 10 year benefit periods
  • 30-day policy issuance
  • You don’t take “NO” for an answer

Acceptable risks include:

  • Alcoholism
  • Angioplasty
  • Anxiety
  • Arthritis
  • Bipolar disorders
  • Cancer
  • Cerebral palsy
  • Chronic fatigue syndrome
  • Heart by-pass
  • Diabetes
  • Drug abuse
  • Epilepsy
  • Fibromyalgia
  • Hepatitis
  • Lupus
  • Kidney transplant
  • Obesity
  • Rheumatoid arthritis
  • Sleep Apnea
  • Ulcerative colitis

What kind of risks will be accepted?

  • White collar
  • Blue/gray collar
  • Physicians and surgeons
  • Own-Occupation definition
  • High risk occupations
  • Previously declined
  • Single case to large multi-life
  • Simplified issue underwriting
  • Return of premium riders
  • Association discounted programs
  • Professional athletes, entertainers
  • Self employed

How do I request a 24-hour quote?

  • Getting a quote is fast and easy. We send all proposals within 24 hours of your request. Here’s how to request one:
  • Contact FargoLIFE and we’ll help you figure out the rest.
  • Receive a Disability Insurance Product Comparison within 24 hours of your request.
  • Call FargoLIFE on demand at 701.318.0908 to receive a customized plan for personal assistance.