Negotiating Exclusion Riders on Disability Insurance
Jul 26, 2014
Jamie Fleischner

Jamie Fleischner

26 Jul, 2014

When you apply for an individual disability insurance policy, medical underwriting is required which entails a phone interview and a paramedical exam (blood and urine test). About 1/3 of disability insurance policies come back either rated or with an exclusion.

What are your options if your application comes back with an exclusion or rider?

  • Find out when or if your exclusion may be removed in the future. Some riders such as pregnancy exclusions can be reconsidered after the current pregnancy is over. Other riders, such as back riders, may be permanent. Removing an exclusion in the future will require new medical underwriting and questions.
  • Request another opinion. Recently I had a client get a policy issued with an exclusion on his right shoulder since he had a tear on his shoulder a few years back. Initially the company said they would reconsider the policy in 3 years. The client contested and they came back and said they would have a separate elimination period for that condition.
  • See if the company is willing to offer a few different options. Some companies are willing to remove a rating if you are willing to reduce the benefit period for a policy or make other changes.
  • If the rider or exclusion seems very unreasonable, you may choose to apply with another company. I’ve had multiple cases where a client will apply to more than one company and receive very different outcomes.

It is important that you work with an experienced broker who can help you navigate and negotiate with the company to ensure the best offer available to you.

For more information about negotiating a policy with an exclusion or to request a quote comparison, contact Set for Life Insurance today!


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