DI Rider on a Term or WL Policy

[shooter]

If you sell much in the blue collar or even the small business owner market.
You find clients that work jobs or have business that include that person doing manual labor.
I had a plumber that had several guys working for him and he was into six figure net income.

More than my net income.
The question. Several companies will sell a life policy to these type of clients and you can add a Di income rider.

These are easier to get underwritten than a stand lone policy, and pay more first year commissions.

I am doing the client a disservice for doing this?
Would I do better to write him a stand alone DI?
Shooter

 

[DHK]

Do you care about conversion options on the term insurance?

Can they keep the DI benefit if they convert to a perm life policy?

Just something to consider.

 

[Norwayguy]

Does the client desire a shorter elimination period than 90 days? Does the client desire a longer benefit period than 2 years. Most of these DI riders are 1 shot 90 elimination period 2 year benefit period options.

 

[LGilmore]

All depends on the definition of disability. Can't tell you if it's good for the client or just shite without the definition.

Always a potential problem if the first thing about a rider talked about is the commission.....

Please post the definition from the companies you're referring to, thanks.

 

[dgoldenz]

If the client is making $100k a DI rider is a disservice. DI riders usually only cover up to 2 years and up to $2-3k/mo for total disability, with no benefits for partial disability or recovery. They also usually only pay out a max of once over the life of the policy instead of per-disability.

 

[shooter]

If the client is making $100k a DI rider is a disservice. DI riders usually only cover up to 2 years and up to $2-3k/mo for total disability, with no benefits for partial disability or recovery. They also usually only pay out a max of once over the life of the policy instead of per-disability.

I agree, and to write him as a rider on a life policy would not be my first choice.
But, opposed to him not having any coverage it is a valid option.
Problem with him and many others in the blue collar market is the underwriting.
The two companies that come to mind are Assurity and Illinois Mutual.
Both ok but neither very good rating B plus for one A- the other. But this is their niche.

I do think I may see if I can get him a critical Illness policy.
That would help. Before I present anything to him I will call
both companies Monday and talk to them.

Shooter

 

[bobson]

If you sell much in the blue collar or even the small business owner market.
You find clients that work jobs or have business that include that person doing manual labor.
I had a plumber that had several guys working for him and he was into six figure net income.

More than my net income.
The question. Several companies will sell a life policy to these type of clients and you can add a Di income rider.

These are easier to get underwritten than a stand lone policy, and pay more first year commissions.

I am doing the client a disservice for doing this?
Would I do better to write him a stand alone DI?
Shooter

Which policy can you sell? The rider is much better than no coverage at all.