Remember to Select a Residual Disability Rider

You may have noticed that Platinum Advantage illustrations do not automatically include a Residual Disability Rider. Technically, a Residual Disability Rider is optional. However, we recommend adding one to all Platinum Advantage policies as a best practice. Here’s why:

Your clients need income protection if they can still work, but not full time. If a policyowner becomes sick or injured but is still able to work part time, a residual disability benefit can help fill the resulting income gap.

The recovery benefit can help clients maintain their income while they return to full-time work. Both the Basic and Enhanced Residual Disability Riders offer a recovery benefit to policyowners who return to work for as many hours as worked before the disability, but still suffer an earnings loss of at least 20 percent due to the previous injury or sickness.

There’s nothing basic about the Basic Residual Disability Rider. This rider provides a minimum of 50 percent of the full benefit for at least six months when the policyowner demonstrates a loss of income and either loss of time worked or loss of duties performed due to an injury or illness.  This rider matches or exceeds many carriers’ strongest residual options, providing strong and appropriate residual coverage at competitive premium rates for most policyowners.

Policyowners unable to demonstrate an immediate loss of income due to fewer hours or duties will want the Enhanced Residual Disability Rider. This rider requires a reduction in just one of three things: income earned or time worked or duties performed. In addition to the most comprehensive definition of disability, the Enhanced Residual Disability Rider provides at least 50 percent of the full monthly benefit for the first full year of residual disability.

The Short-Term Residual Disability Rider provides 50 percent of the monthly benefit for up to six months to your clients in lower occupation classes.  Occupation classes 2A, 2P, A and B may choose this rider that requires the policyowner to be unable to perform one or more duties or not be able to perform them for more than 50 percent of the time and experience an income loss of 20 percent or more.

Make sure all your clients have appropriate residual income protection by selecting a Residual Disability Rider for all illustrations.

For Producers Only