Disability Insurance: Removing Exclusions
I spoke to a client of mine (Dr. Griffin) who purchased a policy a few years ago. At the time, she was a graduating anesthesiology medical resident and was getting ready to go in for a back surgery. As expected, the company put a back exclusion on the policy. They said they would reconsider the exclusion after she was treatment free for at least 2 years.
On her 2 year policy anniversary, I contacted her again. She did in fact have the surgery and is feeling better than ever. She wanted to apply to remove the rider. But her question was similar to others in this situation: “Do companies really remove exclusions once they are on the policy?”
When you try to remove a medical exclusion from a policy, you are required to answer all medical underwriting questions at that time. As such, if your back is improved but now you are diabetic, you may not want to open that can of worms.
However, like in the case of Dr. Griffin, her back was totally healed and she did not have any other medical conditions. She completed a medically underwritten adjustment application and the company sent her physician an attending physician statement. The back exclusion was removed.
Some exclusions are easier to remove than others. I often have women apply for policies while they are pregnant and a pregnancy exclusion is added to the policy. These exclusions are easier to remove from the policy.
Some exclusions are permanent and the company will never reconsider removing it.
It is important that you work with an experienced professional who can not only explain the way exclusions work, but will contact you when appropriate and guide you through the process to remove the exclusion.
