By Jamie K. Fleischner, CLU, ChFC, LUTCF
Purchasing an individual disability policy can be a trying process when it comes to medical underwriting. The company only has one chance to decide if you will be a good risk in the next 20-30 years.
As such, sometimes policies come back with either an exclusion or a rating. This means that the company will offer coverage, but it won’t pay a claim for a specific pre existing condition.
Sometimes clients tend to focus on what won’t be covered instead of all of the other possible risks.
Recently I had a CRNA (I’ll call her Robyn) apply for a policy that came back with a pregnancy exclusion based on her recent complicated childbirth. She was upset and said if they weren’t willing to offer a full policy she wouldn’t want the policy.
A year later, Robyn called me to tell me she was having issues with her hip and was going to need a total hip replacement. This would become a permanent problem and she may not be able to ever work full time as a CRNA. She knew at this point there was nothing I could do to help her, but she made it clear she regretted not taking the policy that was originally offered. She hoped her story would help others reconsider if their policies came back with a rating.
If Robyn had purchased an own occupation policy as a CRNA, she would have been able to file a claim. The policy would have covered her since she wasn’t able to work as a CRNA even if she was able to work in another field.
The important lesson to learn from this experience is that if your policy comes back with an exclusion, it is important to consider all of the potential claims instead of focusing on the one that wouldn’t pay.
For more information about individual disability insurance, contact Set for Life Insurance today!