DISABILITY INCOME INSURANCE - Sandi Kruise Sandi Kruise Inc 2008 - 2015, All rights reserved. 7...

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Transcript of DISABILITY INCOME INSURANCE - Sandi Kruise Sandi Kruise Inc 2008 - 2015, All rights reserved. 7...

  • Copyright Sandi Kruise Inc 2008 - 2015, All rights reserved.

    1

    DISABILITY INCOME

    INSURANCE

    Presented by: Sandi Kruise Insurance Training

    A division of Sandi Kruise Inc 1-800-517-7500 www.kruise.com

  • Copyright Sandi Kruise Inc 2008 - 2015, All rights reserved.

    2

    DISABILITY INCOME INSURANCE TABLE OF CONTENTS

    DISABILITY INCOME INSURANCE 7 Chapter One - Introduction to Disability Income Insurance 7

    Important Lesson Points ......................................................................................................... 7 THE NEED FOR PROTECTION AGAINST THE RISK OF DISABILITY ................................. 7

    Protect Earning Power with Disability Income Insurance .................................................... 7 Who Needs Disability Coverage? ........................................................................................... 8 The Duration of a Disability ...................................................................................................10

    Factors Affecting Likelihood of Disability ...........................................................................12 Age ...................................................................................................................................12 Occupation ........................................................................................................................12 Lifestyle .............................................................................................................................12 Probability of Disability for Groups .....................................................................................12 Potential Earnings .............................................................................................................13 Total Income through Age 65 ............................................................................................13

    DISABILITY INCOME INSURANCE 14 AMOUNT OF INDIVIDUAL DISABILITY INSURANCE NECESSARY ...................................14

    Coverage Calculation ........................................................................................................14 Minimum and Maximum Benefits ..........................................................................................15

    Disability Income Fact Finder ............................................................................................16 Sources of Disability Income .................................................................................................18

    Savings .............................................................................................................................18 Spousal Employment ........................................................................................................18 Borrowing ..........................................................................................................................19 Business Assets ................................................................................................................19 Personal Assets ................................................................................................................19 Government Programs ......................................................................................................19 Disability Insurance ...........................................................................................................20

    Summary...............................................................................................................................20 Chapter Two Disability Policy Definitions & Provisions 22

    Important Lesson Points ........................................................................................................22 BASIC DISABILITY INCOME CONCEPTS 22 POLICY PROVISIONS 22

    Mandatory Provisions ............................................................................................................23 Change of Beneficiary .......................................................................................................24 Notice of Claim ..................................................................................................................24 Claim Forms ......................................................................................................................24 Entire Contract ..................................................................................................................24 Grace Period .....................................................................................................................25 Legal Action ......................................................................................................................25 Payment of Claims ............................................................................................................25 Physical Exam and Autopsy ..............................................................................................25 Proof of Loss .....................................................................................................................25 Reinstatement ...................................................................................................................26 Time Payment of Claims ...................................................................................................26 Time Limit on Certain Defenses ........................................................................................26

  • Copyright Sandi Kruise Inc 2008 - 2015, All rights reserved.

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    Optional Provisions ...............................................................................................................26 Change of Occupation .......................................................................................................27 Misstatement of Age or Sex ..............................................................................................27 Income Insurers with Other Insurers ..................................................................................27 Other Insurance with This Insurer ......................................................................................27 Expense Insurance with Other Insurers .............................................................................27 Relation of Earning To Insurance ......................................................................................28 Unpaid Premium ...............................................................................................................28 Cancellation ......................................................................................................................28 Conformity with State Statutes ..........................................................................................28 Illegal Occupation ..............................................................................................................28 Intoxicants and Narcotics ..................................................................................................28 Additional Provisions .........................................................................................................29

    DISABILITY INCOME INSURANCE RENEWABILITY PROVISIONS ....................................29 Cancelable ........................................................................................................................29 Guaranteed Renewable.....................................................................................................29 Non-Cancelable ................................................................................................................30 Noncancellable & Guaranteed Renewable ........................................................................30 Conditionally Renewable ...................................................................................................30 Optionally Renewable .......................................................................................................31 Optionally - Renewable After Age 65 .................................................................................31 Annually Renewable ..........................................................................................................31

    Definitions of Disability 31 DISABILITY DEFINED BY OCCUPATION ............................................................................32

    Own Occupation ................................................................................................................32 Modified Own Occupation .................................................................................................32 Limited Own Occupation ...................................................................................................33 Any Occupation .................................................................................................................33 Any Gainful Occupation .....................................................................................................34

    Income Replacement ............................................................................................................34 Preexisting Conditions Provision .......................................................................................34

    Elimination or Waiting Periods ...............................................................................................35 Benefit Period .......................................................................................................................36

    Duration of Benefits ...........................................................................................................36 Benefits payable