| Many professionals that purchase their own Individual | | | | Consumers should be cautious of sales professionals |
| Disability Insurance policies will at some point look to | | | | recommending that these more comprehensive |
| their Professional Association for guidance, support | | | | definitions are not important. In reality no one knows |
| and available discount programs. Associations like the | | | | which definition of disability is the necessary one until a |
| American Medical Association, American Bar | | | | debilitating injury or illness has already occurred. When |
| Association, American Veterinary Medical Association, | | | | it comes to protecting a person's income, family, future |
| American Institute of CPAs and American Dental | | | | and livelihood, the more cautious route can never be a |
| Association offer Disability insurance programs at a | | | | bad thing. |
| discounted premium. Consumers should be aware | | | | Perhaps the most important factor that professionals |
| however that there are a few concerns to consider | | | | should be aware of with Association Disability |
| when it comes to Association Disability insurance. In | | | | insurance is the structure of the Residual Disability rider |
| many cases, these policies are inferior to those | | | | that is offered. Residual Disability benefits are meant to |
| offered directly from insurance carriers. | | | | cover partial disability claims where a professional has |
| The first concern is regarding the renewability provision | | | | incurred a 20% or greater loss of income due to an |
| included in Association programs vs. that which is | | | | illness or injury. Considering that the vast majority of |
| available on an individual basis. Typically, Association | | | | Long-Term Disability claims are due to illness and not |
| programs are Guaranteed renewable but not | | | | injury, the structure of a policy's residual benefits can |
| Noncancellable, which means that the premiums are | | | | be very important. |
| not technically guaranteed to remain level for the | | | | Most illnesses do not just appear over night, instead |
| duration of the policy life. Although this is not the | | | | they progressively worsen over time. |
| biggest concern since many of these associations | | | | Strangely enough though, many Association Disability |
| have never increased their premiums in the past, | | | | programs offer residual disability benefits which require |
| having a guarantee creates a different and greater | | | | the insured to experience a period of total Disability |
| level of comfort. | | | | prior to benefits being payable. Unlike Association |
| The second concern is in regard to the definition of | | | | Disability policies, individual Disability policies do not |
| total disability. Most Association programs have | | | | require a person to experience a total disability before |
| limitations on the definition of disability they offer. | | | | paying residual benefits. Although every claim can be |
| Although some of them may have their own version | | | | different, the residual benefit design used by |
| of the True Own Occupation definition of disability, it is | | | | Association Disability programs could deprive a |
| likely to be less favorable than that which is offered | | | | claimant of benefits that would otherwise be paid with |
| with individual contracts. Regardless of what | | | | an individual policy purchased directly from an |
| occupation a person has, having Own-Occupation | | | | insurance carrier. |
| income protection is always better than not having it. | | | | |