Weekly Tip: Disability Income


Weekly Tips

Disability Income


In this week's Weekly Tip, we want to remind you about a few important items as you are preparing your disability income product for IIPRC review and approval.

In your disability income product, are you including "catastrophic disability"? If you answered, yes; then you will want to keep these few points in mind. The Catastrophic Disability pays a monthly periodic income benefit amount in addition to the basic Disability benefit amount. Also, Catastrophic disability is triggered by an inability of the insured to perform a maximum of two activities of daily living (ADLs) out of the following six ADLs: bathing, dressing, toileting, transferring, continence, or eating.

The Standards for Individual Disability Income Policies require that the policy must be renewable. The Cover Page is required to provide a brief description, in prominent print, and must include whether or not the policy is either Conditionally Renewable, Guaranteed Renewable, or Noncncellable. The definitions for each is found in the Uniform Standards, specifically Section 3, B (5), (11), and (15).

You will want to remember that the Supplemental Benefits must be paid in addition to, and not in lieu of, the basic Disability benefits payable under the policy. If the basic disability benefit is not being paid, the supplement benefit may not be paid.

If you have any questions about this information, please contact the IIPRC Office.