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FAQ & Standard Policy Definitions
Frequently Asked Questions
What is the purpose of a monthly disability plan?
The purpose of the plan is to provide you with monthly disability insurance benefits to help you and your family maintain your standard of living if you have an accident or illness which prevents you from working in your own occupation/speciality.
What is my potential income loss due to an accident or illness?
To see how much you stand to lose due to an accident or illness, please CLICK HERE.
When is the monthly or lump sum benefit payable?
After the elimination period has been satisfied.
What does "Totally Disabled" mean?
That as a result of a covered injury or sickness, you are totally unable to perform the substantial and material duties of your own occupation as shown on your policy certificate for the elimination period and for each month during which benefits are payable. In addition, you must be under the care of a physician.
Is there a residual disability benefit?
Yes, there is an optional rider that can be purchased called the Residual Disability Benefit Rider. If an accident or illness reduces your income by a certain percentage, you will be entitled to a residual benefit. For example, if the monthly benefit is $5,000 and because of an accident or illness your income is reduced by 50%, you will be paid a $2,500 monthly disability benefit.
Are premiums waived after I become disabled?
Premiums are always due during the elimination period of the policy and until your claim has been approved. After 90 days of continuous disability, we will waive any premiums due after the end of the elimination period and refund any premiums paid in good faith after the elimination period ended and when your claim was approved. Thereafter we will waive any premiums that may come due as long as you meet the definition of disability as defined by the policy or your policy terminates for any reason. Please note, a full first year premium is due before the waiver is effective.
How long are premiums and coverage guaranteed?
Up to your policy term which can be up to five years less one day.
Should I replace any of my existing disability coverage with this policy?
No, the policies are designed to be used to supplement your existing coverage, not replace it.
Is the benefit tax-free?
Yes, all individual disability insurance benefits are income tax-free under the IRC Section 104(a)(3) if the premiums are paid with after-tax dollars. Please consult your financial advisor for more information.
If I am disabled outside of the continental United States, am I covered?
Yes, protection is worldwide 24/7.
What conditions are not covered by the policy?
If the loss is caused by, or the result of:
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Being under the influence of narcotics or intoxicants.
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​Any psychosis, neurosis, or neuropsychiatric illness including but not limited to any emotional anxiety or depression illness.
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Attempted suicide or an intentionally self-inflicted injury
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Travel on aircraft for test purposes, on military aircraft, serving as a pilot or crew member or taking a flying lesson.
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Participation in a riot, service in the military, or committing or attempting to commit a felony.
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Losses from any act of nuclear chemical, or biological terrorism.
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Nuclear reaction, radiation, contamination (not related to occupation)
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A pre-existing condition.
The issued policy will have a full list of exclusions and limitations.
What is a "Pre-Existing Condition" and how might it affect coverage?
Pre-Existing Condition means a sickness or accidental injury for which you, in the 12 months before the effective date of your coverage or any increase in the amount of insurance under the policy takes effect, and have:
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Received medical treatment, consultation, care or services or
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​Taken/took prescriptions medication prescribe or​
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Had or have any symptoms that would cause a reasonably prudent person to seek care;
We will not pay benefits for disability that results from a Pre-Existing Condition unless for a continuous 12 consecutive month period after the effective date of your disability insurance you have been actively at work full-time (30 or more hours per week) and have not:
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Received medical treatment, consultation, care or services or
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​Taken/took prescriptions medication prescribe or
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Had or have any symptoms that would cause a reasonably prudent person to seek diagnosis, care or treatment for such conditions.
Are the benefits paid if the disability was caused by war, acts of foreign enemies, hostilities, or war-like operations, civil war, rebellion, revolutions, insurrection, uprising or any act of terrorism provided you were not taking active part in them?
Yes, with the exception of nuclear, chemical, or biological terrorism.
How long after my injury or illness will a claim be valid?
You must become Totally Disabled within 730 days from the date your accident or illness occurs.
What happens if I apply for coverage and then decide I don't want it?
You can return your certificate within 10 days of receiving it and be given a full refund of your payment.
Standard Policy Definitions
Monthly Benefit (TTD): Once the Elimination Period has been satisfied, the monthly benefits will begin and are paid out until the Benefit Period has been exhausted or Total Disability ends, whichever the sooner.
Lump Sum Benefit (PTD): Considered a "career-ending benefit," the Lump Sum is triggered by the Permanent Total Disability (PTD) of the Insured, meaning they are not expected to recover or return to work. The benefit is paid out either following the exhaustion of the monthly benefit or once the Elimination Period has been satisfied.
Elimination Period: The period of time for which the Insured must be continuously disabled before the benefits are payable.
Benefit Period: The number of months that benefits are payable during the period of disability.
Policy Owner: Generally, the Insured on the Schedule. If otherwise, the person who applies for insurance in conjunction with or on behalf of the Insured. At all times there must be a valid insurable obligation/interest between the owner and Insured.
Own Occupation: The substantial & material duties of the Insured’s regular occupation as listed on the application and schedule page of the policy.
Term of Insurance: The time period where the policy cannot be cancelled. Neither the terms nor policy can be altered by the carrier, provided the premium is paid on time.
Grace Period: IDU's grace period will allow a period of thirty-one days for the payment of each premium due.
Waiver of Premium: Premiums are always due during the Elimination Period of the policy and until your claim has been approved. After 90 days of continuous Disability, we will waive any premiums due after the end of the Elimination Period and refund any premiums paid in good faith after the Elimination Period ended and when your claim was approved. Thereafter we will waive any premiums that may come due as long as you meet the definition of Disability as defined by this policy or your policy terminates for any reason. Once your disability ends, you may resume payment of premiums beginning with the first premium installment that comes due immediately following the end of the period of which disability benefits were payable.
Presumptive Disability: For Monthly Benefits payable the Insured is presumed Totally Disabled and Elimination Period waived if as a direct result of an injury or sickness that occurs during the policy term and causes irrecoverable loss of: ability to speak or hear, sight of both eyes, use of both hands or feet or one hand and one foot.
Transplant Benefit: If, after policy has been in force for 6 months, the Insured gives part of their body to another, the condition will be deemed a Sickness and Disability Benefits paid in same way as any other Sickness.
Residual Benefit Rider: If while working in your occupation you suffer a partial loss of income accompanied by either an inability to do one or more of your substantial duties or ability to perform all of your duties but for less time than is usually required then an equivalent percentage of the Monthly Benefit is paid. Payments will proceed until no longer residually disabled or the benefit period is exhausted, whichever the sooner. Please reference your policy for the minimum percentage loss of income required.
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