The Standard is a marketing name for Standard Insurance Company (Portland, Oregon), licensed in all states except New York, and The Standard Life Insurance Company of New York (White Plains, New York), licensed only in New York. Products and availability vary by state and are solely the responsibility of the applicable insurance company.
Know-It-All: Which Residual Rider Is the Right Choice?
Basic Residual Disability Rider
Occ. Classes: All classes except A and B
Cost: 12% added to base premium
Benefits: Guaranteed to be at least 50% of the basic monthly benefit for the first 6 months; after 6 months benefits paid may be more or less than 50%, depending on loss of income
Based on: A loss of income and a loss of either time or duties
Recovery Benefit: Paid if insured returns to same occupation and has a loss of at least 20% income due solely to the same disability
Don’t close a sale without one. That’s the most important thing to know about residual disability riders. Platinum Advantage offers three options, instead of only one built-in provision. That allows you to tailor coverage by matching the right rider to each client’s needs. You can help them feel more confident and protected, whether they start out with a partial disability or can return to work only part-time after a total disability. Here’s a quick guide.
1. Occupation is key. Don’t assume that every client needs the most comprehensive coverage for residual disabilities. Start with your client’s occupation and explore job duties to understand their real needs.
Enhanced Residual Disability Rider
Occ. Classes: 3A, 3P and higher
Cost: 19% added to base premium
Benefits: Guaranteed to be at least 50% of the basic monthly benefit for the first 12 months; after 12 months benefits paid may be more or less than 50%, depending on the loss of income
Based on: Loss of time or duties or income during the benefit waiting period
After BWP: Insured is considered residually disabled if working in regular or any other occupation and experiences a loss of income
Recovery Benefit: Paid if insured returns to work in own or other occupation and has at least 20% income loss due solely to the same disability
2. Basic may be the best fit. For most of your clients, The Standard’s Basic Residual Disability Rider can provide strong and appropriate residual coverage at competitive rates. In fact, our Basic rider matches or exceeds many carriers’ strongest residual options. Be sure you understand the type of coverage gaps your client could experience before you recommend another option.
Short-Term Residual Disability Rider
Occ. Classes: 2A, 2P, A and B
Cost: 5% added to base premium
Benefits: 50% of the basic monthly benefit up to 6 months
Based on: A loss of income of 20% or more and a loss of either time or duties during and after the benefit waiting period
3. Enhanced can be ideal for business owners and specialized professions. The Enhanced Residual Disability Rider is designed for clients who may not experience an immediate loss in earnings. For example, business owners, equity partners and specialists in medicine, dentistry or law. They can also qualify for benefits based on a loss of duties or time during the benefit waiting period. Another advantage? The Recovery Benefit offers these clients the flexibility to return to work in their own or another occupation and still receive benefits.
4. Short-Term is right-sized for blue and gray collar occupations. Our Short-Term Residual Disability Rider adds only 5 percent to the base premium. It’s tailored for people who need an affordable way to protect against a partial income loss. For example, a plumber could have a back injury that limits his ability to handle all of his duties and earn his usual income. He could receive 50 percent of the policy’s basic monthly benefit for up to six months. That could help maintain his lifestyle or pay for treatment.
Help your clients picture their own situation and pick the right option. They’ll appreciate your expertise.