Shopping for DI and LI Policies in CA

[Cito_burrito]

Dear Ladies and Gentlemen,

I would appreciate your professional advice on my situation:

I am a consumer shopping for DI and term LI policy for me and my husband in CA. We are 26 and 34, both healthy and low risk.
(isn't it usually the case - people buying insurance the most are the ones who need it the least? ) ,

I looked at LI quotes online, and price difference between the companies seems to be small for healthy younger people for about 500 000, so my main concern is the quality of customer service and how efficient is the LI claim process with particular company? I understand that it cannot be instant, but I wonder if it can be polite, considerate and clear.

Any recommendations of Living Will?

Disability Insurance is much more confusing

according to my web research - one should look for policy that:
1) clearly defines disability as "decline of income as the result of sickness or accident", not "occupation suited by education" or "main duties of curent occupation" , i.e. policy would replace a certain % of my loss of income

2) "guaranteed renewable and noncancelable" or at least "guaranteed renewable" , definetly not "class cancelable"

3) pays "residual" or "recovery" benefits

4) pays immediately for disability resulting from disclosed preexisting condition


5) covers intermittent disabilities and the caused loss of income

6) waives premium if disability is longer then 3 months and possibly refunds them?
7) classifies my office based profession as "top class of occupation"?


8) currently I think I need 2 estimated quotes based on benefits of min $1500 and of maximum 2000/month for both me and my spouse
9) and estimated quotes how much is price difference on policy that pays first benefit in 30, 60 and 90 days, if price difference is significant i'd prefer 60 or 90 days
10) no lifetime premium, just by age 65
11) what happens when my income increases and I need more coverage?

I would really appreciate your help, Thank you!

 

[LGilmore]

Disability Insurance is much more confusing

According to my web research - one should look for policy that:
1) clearly defines disability as "decline of income as the result of sickness or accident", not "occupation suited by education" or "main duties of curent occupation" , i.e. policy would replace a certain % of my loss of income

First off, having to prove loss of income is not a good disability definition. What if income earned today is paid 6 months from now?

The best DI definition are the shortest.. "unable to do the normal functions of your regualr occupation due to sickness or injury." Beyond that, everything else is a restriction or condition of payment.


2) "guaranteed renewable and noncancelable" or at least "guaranteed renewable" , definetly not "class cancelable"

Noncan is the best terms as it creates a situation where you control the policy.

3) pays "residual" or "recovery" benefits

Yes, What's important here is at what point does residual kick in (example at 20% reduction of normal income..)

4) pays immediately for disability resulting from disclosed preexisting condition.

Good LUCK. Most DI carriers won't underwrite someone with alot of preexisting problems. Good quality DI is by far the hardest coverage to qualify for.


5) covers intermittent disabilities and the caused loss of income

This usually would be under residual or worded in such a way that a relapse within say 6 months return to work would be considered a continuation of the prior problem, not a new problem.

6) waives premium if disability is longer then 3 months and possibly refunds them?

Waiving premium while on claim is pretty common, refunding premiums is usually a rider to be purchased.

7) classifies my office based profession as "top class of occupation"?

occupations are classed and priced by claims experiences and risk potential. For some, even though they work in an office, they won't be classified any cheaper than a driver. It will depend on the job description.



9) and estimated quotes how much is price difference on policy that pays first benefit in 30, 60 and 90 days, if price difference is significant i'd prefer 60 or 90 days

Usually you see a grid that shows elimination period and duration of benefit. Then you pick your own poision.

10) no lifetime premium, just by age 65

DI is only sold or lasts until a certain age. The policies do not last a lifetime.

11) what happens when my income increases and I need more coverage?

When making your purchase consider future increase options that allow you to increase coverage based on income without having to show good health.

 

[Franz Kafka]

Buying insurance is a lot like buying a car. There are no good or bad cars in themselves but there are certain cars (and certain options) that can meet your particular needs or wants. I recommend a face-to-face consultation with a life and disability agent who can help you figure out what you need or want. You don't get any discounts by cutting out the middleman (unlike some other things you can purchase online or wholesale). There are quite a few competent agents on this forum and I'm sure one of em could help you find the policies you need or want.

 

[The DI Doctor]

Most good carriers will show alternative premiums and benefits in their quotes, even while profiling a good option like a 90 day wait with benefits to age 65.

When you look at definition of disability (own occupation) you should consider everything from age to the job you do. Own occpation is a defintion where you are paid your benefit while disabled, even if you are doing another job. SO... if you are an executive calling shots behind a desk, you may have much less need of own occ than someone who has to be mobile or hands on.

As far as prexisting conditions are concerned, most will end up being excluded, but this should be researched according to the condition, and medical stability of it.

You are right, alot of detail, hope I helped a bit, but best to find an agent you know and trust.

Take care!!!

 

[Cito_burrito]

Thank you everybody for your replies! I understand that I can't buy it online and I need a competent agent, but unfortunately I cannot send PM messages on this forum (until I post total of 20 messages, but I don't have much to say), so I would really appreciate if you could please send me referrals to PM or to my e-mail through this forum:

Thanks !

 

[NMFNMDRT]

Get in touch with a Guardian, Mass, or Northwestern agent. You can't go wrong with them when it comes to DI. Just call the office and ask to speak to the Managing Director, and they can point you in the right direction.