Tell me the many ways applications for disability income insurance can be declined or modified due to health reasons and I’ll tell you the many ways those actions might be remedied.
The focus for this article is arthritis. However, many other health conditions may also, depending on circumstances, be declined, modified or rated. These include asthma, alcoholism/drugs, carpel tunnel, cancer, Crohn’s disease, diabetes, epilepsy, heart attack, hypertension, lupus, mental disorders, multiple sclerosis, overweight, respiratory conditions, and sleep apnea.
Incidentally, there are reasons, other than health, that also can result in declination, rating or modification (see box).
As we all know, the human body with all of its components (skeleton, blood, organs etc.) is an engineering marvel. It’s a wonder we function as well as we do, considering the rigors of daily living.
But what happens when one of the “parts” (indicated on an application for disability income insurance) hasn’t functioned as well as a disability underwriter would like to see? In particular, what if the client has a history of arthritis?
The producer’s focus is to explore what possibly can be done to overcome a decline, exclusion or rating related to the arthritis (or other condition, where it applies).
Fortunately, several possible remedies might be acceptable to the underwriter. Keep in mind that the underwriter would prefer to issue, if at all possible.
The potential remedies are:
1. Use a shorter benefit period.
2. Use a longer elimination period (either overall, or just for that condition).
3. Apply for a smaller benefit amount.
4. Exclude the condition.
5. All of the above.