Residual DI or 'own occ': Can you be comfortable recommending either?

A long-term own occ definition of total disability has always had more sales appeal than logical insurance credibility. The own occ product certainly took center stage for many years-ahead of the residual DI, a policy that seemed to have a more solid basis in helping someone in proportion to the los...

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Bibliographic Details
Published inNational Underwriter Vol. 105; no. 10; p. 14
Main Author Sadler, Jeff
Format Trade Publication Article
LanguageEnglish
Published Erlanger ALM Media Properties, LLC 05.03.2001
EditionLife, health/financial services ed.
Subjects
Disability insurance
Insurance agents & brokers
Insurance policies
Personal selling
Sales
Surgeons
United States > US
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Summary:A long-term own occ definition of total disability has always had more sales appeal than logical insurance credibility. The own occ product certainly took center stage for many years-ahead of the residual DI, a policy that seemed to have a more solid basis in helping someone in proportion to the loss of income felt due to disability. But a policy that only pays a benefit based on loss of earnings could not compare to a plan that pays a total benefit plus any money one can earn in another profession. Also, a residual policy costs more than a stand-alone own occ policy. But insurers soon packaged the 2 together, so that the disabled insured could access residual benefits if he or she returned to his or her own practice. That packaging of the 2 seemed to answer all questions for those who could afford the cost of the two-benefits-in-one product. Unfortunately, the own occ claim gets more press, but there are problems with residual disability, too.
ISSN:1940-1345