Health, Life, AND Disability License?

HealthGuy · 12-15-2008, 05:47 PM

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 · 12-15-2008, 05:48 PM

Disability coverage is health insurance.

HealthGuy · 12-15-2008, 05:50 PM

Got it, thanks Moonlight!

Markingriffin · 12-15-2008, 05:53 PM

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 · 12-15-2008, 06:15 PM

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 · 12-16-2008, 01:32 AM

Originally Posted by 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!

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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Originally Posted by moonlightandmargaritas

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 · 12-16-2008, 08:59 AM

Originally Posted by retread

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 · 12-16-2008, 10:47 AM

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 · 12-17-2008, 01:20 AM

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 · 12-18-2008, 01:05 AM

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.

HomeService · 12-18-2008, 10:57 AM

Oh, I agree, better to have a rider than none at all. I used to sell stand alone DI twenty years ago and it did not seem really high $$ to me, but maybe it has changed since then....

Seems like 20 years ago my average premium was like $70 per month for stand alone DI. And I wrote all occupational classes except maybe tree trimmers and such.

Markingriffin · 12-21-2008, 07:35 PM

Originally Posted by 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.

There is a great market for D.I. products. With this product, you get what you pay for.

Who can afford this policy? Hmm, I say who can't afford to have one of these policies. You need to talk to some clients that I know that needed this coverage, and didn't have it. Sure it would have cost them some money, or more then they wanted to pay, but if they had a time machine, they would go back and buy this coverage. Who can afford to stop getting a paycheck if something bad happens to them.

It's all about educating the client. I hope that you never need this coverage, but if you do, I hope you have it to protect your family and you.

Don't make me play some video that will make you cry, from a client that didn't have the coverage or from a client that had the coverage and it really helped them. I had a cd full of them from M.O.O. They had some really great stuff back in the day, and I bet they still do.

Most D.I. products have great client brochures and most of the companies will help you sell their products.

I find that a lot of business owners, buy this type of coverage.

Find someone that is selling a ton of D.I. and copy what they are doing.

Just in my office, two of use would have already had a claim and wish we had bought it.

Let me tell you a story with one of my clients. I was trying to talk him into buying a D.I. Policy. But he just was not understand how important it is to have one of these policies. I asked him does he believe in insurance and he said yes. He told me that he had car insurance, homeowners insurance, health insurance, life insurance and a ton of other kinds of insurance. I asked him if he got disable, who would he pay for all of those insurance polices or pay his bills. It's like having insurnace on your insurance. Now talking about affording it. You will be shocked at how clients can cut back things, that are not so important as this to get this coverage. Maybe they can downgrade their tv plan or go out to eat less. I just don't understand how people can afford not to have this coverage.