Posted on September 21st, 2017

Image by © Royalty-Free/Corbis

Disability contracts are often overlooked when it comes to implementing a benefits package. Most of the time the focus is on the medical (and understandably so), followed by dental, vision, life, etc. But behind medical, disability is arguably the most important benefit and holds one of the greatest values.

Unfortunately, it seems that more and more carriers are continuing to cut corners when it comes to contracts. Here are a few things to look for when evaluating a disability product for your clients:

  1. “Special Condition” limitations: This is extremely vague wording, which is most likely intentional. Most carriers limit some kind of special condition to a lesser benefit than the full duration of the contract. But what’s important to look for is what actually falls under “special condition.” More carriers are listing “Musculoskeletal/Connective Tissue” as a 24-month benefit limitation. According to this study (page 8), it is the number one LTD claim by a WIDE margin. Your client could be buying a disability contract that limits the number one claim to a two-year benefit, instead of a benefit to retirement age.
  2. Offsets: Be aware of and knowledgeable about offsetting rules with each carrier. Most carriers have offsets for PTO, vacation, sick pay, salary continuation, etc. Again, this is something often overlooked, but could dramatically affect your clients’ income when they can’t work.
  3. Rehab: Sometimes carriers will force rehab upon an employee that’s out of work. Usually he or she will have to go to a “network” rehab facility approved by that carrier or their benefit will suffer. There are carriers that put the rehab as voluntary AND even pay an added benefit if the employee goes, in order to incentivize them to get healthy and back to work.

Typically these aren’t thinks that will win a BOR, but could go a long way with establishing credibility with groups and prospects regarding things most brokers overlook.

Questions about disability products? Contact your Cason Group Sales Representative.

  • Barin Powell
    Sales Representative/Market Leader: Georgia, Alabama, Tennessee
    Individual Medical Group Operations Sales Representatives

    Barin, a University of South Carolina graduate, joined The Cason Group in 2014. He works with advisors throughout Georgia selling and enrolling new groups in ancillary and worksite products.

    Connect with Barin on LinkedIn