Today I received an issued individual disability policy on a physician and he noticed the premium was different than the premium originally quoted. When this happens, I need to check several parts of the issued policy:
1) Did the client have an age change? If the client had a birthday after the application was submitted, the premiums may be higher if the policy is issued at the new age. This can be resolved by requesting to backdate the policy to a day prior to the client’s birthday. However, this may require additional premium dating back to the date of issue.
2) Was the policy issued at the accurate occupational class? Occupational classes determine premiums. For instance, the occupational class will be different for anesthesiologists, surgeons and emergency physicians than pediatricians and internal medicine physicians. Some specialties such as cardiology and radiology are split into two classes depending on if the client is performing procedures. Look at how the policy was quoted and how it was issued.
3) Was the policy rated or issued other than applied? Sometimes, based on medical history, the policy may come back with a shorter benefit period such as 5 years or have an additional rating such as 25%. This can greatly affect the premium.
4) Did you move? If you moved from one state to another, this can change the premium. For instance, if you move to California or Florida and the policy is issued as such, this can increase the premium.
5) Did they issue it at the correct gender? If you are a male and the company issued the policy at female rates, this can greatly affect your premium since female rates are 40% more.
6) Discounts. Was the policy issued with or without a discount? Especially if you are a woman and are eligible for Set for Life Insurance unisex rates, this can greatly affect your premiums.
7) Riders. Was the policy issued with the correct riders? If you added or removed riders such as the cost of living rider, this can have an impact on rates.
8) Monthly benefit. Was the policy issued with the correct monthly benefit?
Make sure you read your policy closely to ensure it was issued properly. If the policy was issued improperly or you want to make changes, you can request the policy to be reissued.
For more information about disability insurance for individuals or physicians, policy premiums or to request a quote,contact Set for Life Insurance today!
