Health, Life, AND Disability License?

[HealthGuy]

Dumb questions welcome? Mine is this: I am currently licensed in health and life in several states. To sell disability in most states are you required to take and then maintain a separate DISABILITY license? What if you sell only tack on disability riders on life policies and not stand alone DI? Are you required to have a separate disability license then? The question came up because I just saw and E and O advertisement that was selling for an extra $50 a year coverage for DI errors and ommissions coverage...I have thought a single health and life license authorized me to sell health, life, and disability as well, thus my current E and O by default I thought covered me for DI E and O claims too?

 

[moonlightandmargaritas]

Disability coverage is health insurance.

 

[HealthGuy]

Got it, thanks Moonlight!

 

[Mark]

You already have what you need. Your Lic covers D.I. under your health Lic.

FInd another E and O company. Some try and charge extra for things that they you will pay more for. But the other E and O companies already cover this. Maybe the e and o Company will be cheaper if you say that you will never sell this product.

 

[HealthGuy]

When I applied for the E and O they never asked, or maybe I don't remember them asking if I would sell DI...My E and O is with CNA, Continental Casualty Company and it only says life and health E and O coverage on the certificate, but as stated above probably covers DI as well, I want to sell DI - so wouldn't look for a discount off my E and O but point well taken. Thanks Mark!

 

[retread]

When I applied for the E and O they never asked, or maybe I don't remember them asking if I would sell DI...My E and O is with CNA, Continental Casualty Company and it only says life and health E and O coverage on the certificate, but as stated above probably covers DI as well, I want to sell DI - so wouldn't look for a discount off my E and O but point well taken. Thanks Mark!

I don't know what state you are in, but here in Kansas the DOI used to list my appointment status as LHA.... Life/Health/Accident. Now they just show LH (life and health). I suppose they felt that LHA was redundant.
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Disability coverage is health insurance.

Interesting... I consider DI more in common with Life than Health.... That's why you can rider disability on a Life policy. Never heard of ridering health.

Both Life and Disability protect income.... Health insurance pays medical expenses.

 

[moonlightandmargaritas]

Interesting... I consider DI more in common with Life than Health.... That's why you can rider disability on a Life policy. Never heard of ridering health.

Both Life and Disability protect income.... Health insurance pays medical expenses.

I can see what you're saying, but DI is technically health insurance. Morbidity is used to underwrite it as opposed to mortality.

 

[Delta76]

An easy bridge from health to DI:

"Your health insurance pays your doctors if you get hurt or sick. What do you have in place to pay you if you got laid up for 9 months?"

 

[HomeService]

DI has always been a health product, and, I never heard of a DI rider on life. I think you guys may be mixing up some other riders. I have heard of a CI rider on life. And, waiver of premium due to disability, but never DI. Maybe I'm wrong...

Now, I have seen these riders on life -that the mortgage protection guys sell, where you add some disabilty benefits to a term policy... old mutual used to have it, maybe they still do... this is not anywhere near a DI policy, nowhere near it. It adds some disability to life, but nowhere near as comprehensive as a true stand alone DI policy. It's just a rider -and not great from what I've seen.

 

[HealthGuy]

You are correct HomeService, but honestly - Who can afford a true stand alone DI policy? Very very expensive usually and middle markets won't buy it..Better to have a limited benefit rider for DI than purchasing something that is 'better' but unaffordable, just my opinion.