Disability Income

Protect Your Paycheck

While most Americans insure their cars, homes and possessions, many overlook their most valuable asset – the ability to earn an income. No one likes to think about becoming disabled. But what would happen if you became sick or hurt and unable to work? Who would run your business? Could you pay your monthly household or business expenses?

That’s where disability income insurance comes in. A Disability Income insurance policy ensures you’re adequately prepared for any possibility and that you’ll receive an income while you’re disabled.
 
General Disability Income Insurance

The General Disability Income policy* provides a monthly income for total and partial disability. The amount of monthly benefit which may be issued is determined by the insured’s earned income. It has a two-year Own Occupation definition of disability. It is guaranteed renewable. Elimination periods are the same for sickness and injury: 30, 60, 90 or 180 days. Benefit durations can be 1 year (issued as a rider), 2 years (issued as a rider or a separate policy), 5 years or to age 67. Rates are determined by age, sex, tobacco usage and occupation class.

Farmers and Agribusiness Owners

The Farmers Disability Income policy* provides monthly income for total and partial disability to those who are self-employed in agribusiness or work for a family member owned agribusiness. The amount of monthy benefit is determined by the insured’s earned income. It has a two-year Own Occupation definition of disability. It is guaranteed renewable. Elimination periods are the same for sickness and injury: 30, 60, 90 or 180 days. Benefit durations can be 1 year (issued as a rider), 2 years (issued as a rider or a separate policy), 5 years or to age 67. Rates are determined by age, sex, tobacco usage and occupation class.

Business Owners Disability Income

The Business Owners Disability Income (BODI) policy* provides monthly income for total and partial disability to those who are self-employed or work for a family-member-owned business, such as carpenters, electricians, HVAC installers and landscape gardeners or merchant/owners of retail and service stores. The amount of monthly benefit which may be issued is determined by the insured’s earned income. It has a two-year Own Occupation definition of disability. It is guaranteed renewable. Elimination periods are the same for sickness and injury: 30, 60, 90 or 180 days. Benefit durations can be 1 year (issued as a rider), 2 years (issued as a rider or a separate policy), 5 years or to age 67. Rates are determined by age, sex, tobacco usage and occupation class.

Business Overhead Expense

The Business Overhead Expense (BOE) policy* is designed to help the small business owner keep his/her business viable during a time of disability by reimbursing the business owner for monthly business expenses such as rent, utilities, property and payroll taxes. This product completes a comprehensive income protection package when sold in addition to a BODI policy. BOE provides monthly benefits for total and partial disability. The amount of monthly benefit which may be issued is determined by the amount of the insured’s business expenses. It has a two-year Own Occupation definition of disability. It is guaranteed renewable. Elimination periods are the same for sickness and injury: 30, 60, 90 or 180 days. Benefit durations can be 12, 18 or 24 months. Rates are determined by age, sex, tobacco usage and occupation class.

Form #s: GDI 40-183 1101; FDI 40-182-1101; BODI 40-184 1101; BOE 40-185 1101

* These policies provide disability income insurance only. They do NOT provide basic medical, basic hospital or major medical insurance (as defined by your state insurance department). The expected benefit ratio for these policies are 80%for the short-term benefit period (1-2 years); 60% for the long-term benefit period (5 years or to age 67). This ratio is the portion of future premiums which the Company expects to return as benefits, when averaged over all people with a policy. These policies do not duplicate benefits provided by federal or state legislation, such as workers’compensation.

These policies contain certain exceptions, reductions or limitations. There is an Elimination Period which is the number of consecutive days at the beginning of a continuous period of total disability during which no benefits are payable under the policies. Medical examinations are required of applicants in certain cases.

These policies are issued from ages 18-60, and are guaranteed renewable upon timely payment of premiums until the policy anniversary nearest to the insured’s 67th birthday or the insured’s collection of retirement benefits under Social Security, if earlier. The Company reserves the right to change the premium amount by premium class. Any new premium will be based on the insured’s age, sex and premium class on the Date of Issue of the policy. It will take effect on the policy anniversary next following the change. Any change in premium rates is subject to the prior approval of the Superintendent of Insurance.

No benefits will be paid within two years (one year inWV) from the date of issue for any pre-existing condition which was misrepresented or not revealed in the application for a policy, and which causes or contributes to your disability. A pre-existing condition is the existence of symptoms that would cause an ordinarily prudent person to seek diagnosis, care or treatment; or a condition for which medical advice or treatment was advised by or received from a physician within a 2-year period (one year inWV) prior to the effective date of your coverage.

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