SecureDI - Individual disability insurance for those who have been declined for medical reasons

Fact: 10% to 15% of disability insurance applications are declined, most for medical reasons.

SecureDI is an innovative product designed for individuals who are unable to obtain regular disability insurance coverage for health reasons.

Fact: The vast majority of long term disability claims, particularly in the white collar and professional classes, are due to sickness, not accident

SecureDI provides coverage for both accident and sickness, and features available monthly benefits up to $10,000, with benefit periods up to 10 years for sickness and to age 65 for accident.

Fact: We can insure approximately 85% of the cases declined for medical reasons by regular insurers. Furthermore, we rarely exclude the medical condition for which the applicant was declined.

Through a combination of special plan design features and unique special risk underwriting expertise and experience, we can offer quality coverage to many otherwise uninsurable individuals who meet the following criteria:

• Actively at work full-time for at least the last 12 months and not chronically ill
• Receiving appropriate medical care and follow-up for the medical condition
• Preferred market is white/gray collar (selected blue collar business owners will be considered for limited benefits)

If your client meets these criteria, they may qualify for SecureDI coverage, even if they have (or have had) a serious medical condition such as diabetes, heart disease, cancer (after successful treatment), depression, obesity, and many other conditions.

Here are some examples of specific cases we have issued:

Mental/Nervous disorders: 40 year old executive, declined by group insurer for excess over non-evidence maximum. Also declined by an individual DI carrier. Sees psychologist regularly following marital break-up, takes medication. We issued a $2,800 monthly benefit with a 10 year benefit period.

Diabetes: 31 year old software developer with Type I diabetes (diagnosed age 7), declined by two insurers. We issued a $2,200 monthly benefit, with a 5 year benefit period

Musculoskeletal: 25 year old dentist with ankylosing spondylitis, a progressive degenerative spinal arthritis. We issued $3,300/month with a 5 year benefit period.

Overweight: 43 year old executive, 5’10” 325 lbs. He had no other significant medical problems (note: max. wt. is 233 lbs. for standard DI). The company was carving four executives out of the group LTD plan and setting up a Wage Loss Replacement Plan. It was critical that all four get some form of coverage.
We issued a monthly benefit of $8,000 with a 10 year benefit period

Circulatory: 56 year old lawyer, had a heart attack in 1996, missed two months of work. Also diagnosed with type II diabetes, controlled. Recently declined by his professional association plan as well as an individual DI insurer. We issued a plan with a 5 year benefit period and a monthly benefit of $5,000.

SecureDI is underwritten both medically and financially. The underwriter is Reliable Life Insurance Company of Hamilton, Ontario. Reliable Life is a member of the Old Republic Insurance Group of companies, one of North America’s largest publicly held insurance enterprises.

(A) General Information:

Issue Ages:  18 to 64

Benefit Periods:  Sickness – 2 years, 5 years (max issue age 59), 10 years (max issue age 54)
Injury – to age 65, or same as Sickness

Elimination Periods:  30, 60, 90, 120, 180 days (30 day EP available only with 2 year sickness benefit period)

Issue and Participation Limits Table

Maximum Benefit Amount:  $10,000/month
 

(B) Summary of Policy Provisions:

Please Note: This is intended as a summary of the important features of the plan.  The actual policy provisions will prevail.  We will provide a sample of the entire policy contract on request.

Total Disability Benefits:

You will be considered totally disabled if you are unable, due to sickness or injury, to perform the substantial duties of your regular occupation. You will not be considered totally disabled if you are able to perform one or more of the substantial duties of your regular occupation or if you are engaged in any gainful occupation. You must be receiving appropriate care from a physician.

You will receive monthly benefits for total disability after you have been totally and continuously disabled for the number of days in the elimination period (periods of disability separated by 30 days or less will be considered continuous).

Benefits will continue for as long as you remain totally disabled, but not longer than the maximum benefit period for any one period of disability.

If disability due to sickness occurs during the first two policy years, you will receive a reduced benefit (there is no reduction if disability is due to accident):

Partial Disability Benefits:

You will be considered partially disabled if you are unable, due to sickness or injury, to perform the substantial duties of your regular occupation for at least 50% of the time you normally work, or if you are unable to perform one or more of the substantial duties of your regular occupation. You must be receiving appropriate care from a physician.

If you are partially disabled after a period for which you received benefits for total disability, for up to six months you will continue to receive 50% of the amount you would have received if you had remained totally disabled.

Working Disability Benefits:

If you meet the definition of total disability except that you choose to engage in another gainful occupation, you will continue to receive benefits for up to an additional year as long as you are earning less than 25% of your pre-disability earnings. Your benefit will be reduced by your earnings from the other occupation.

Limited Benefit for Mental or Nervous Disorders:

If you are totally disabled due to a mental or nervous disorder, you will receive 50% of the monthly benefit you would otherwise receive, for a maximum period of six months.

Waiver of Premium:

Premiums for the

Here are the steps to follow in applying for SecureDI coverage:

1. Check our SecureDI Pre-Screening Guide to verify that your client’s medical condition is not listed as one that we are unable to consider for coverage.

2. Get a Quote. Important: We will not consider SecureDI applications unless we have first provided a quote.

3. Have your client complete the Application Form. Important: We will NOT begin underwriting until we receive a FULLY completed application.

4. Submit:

1. the fully completed application
2. completed Brokers Report
3. a cheque for at least one month’s premium, payable to “Reliable Life Insurance Company”. Important: Note that interim or conditional coverage is not provided, but we will not begin underwriting without a deposit cheque.

If you are not already contracted with us, we will initiate contracting upon receipt of an application. To begin processing, however, we will need a copy of your current license and proof of E&O coverage.

Please DO NOT order any underwriting requirements. We will arrange for all necessary underwriting requirements, after initial review and assessment of the application.


 

Although we can consider most applicants that have been declined elsewhere, there are some medical conditions that we are unable to insure, and others where a certain period of time must pass after diagnosis or successful treatment before we can consider an application.

The following chart provides information regarding the best case offer for a variety of medical conditions.

Important: This is a guideline only. Approval of any application is subject to full underwriting and we reserve the right to offer modified terms or decline to offer.

Underwriting Requirements