Lump Sum Disability Benefit

Click the image below for a brief informative video about this great benefit!

You, Your Family, and Your Practice

SavingsIntroducing a special $3,000,000 Lloyd’s of London lump sum disability benefit for Danna-Gracey policyholders.

This exclusive benefit is offering:

  • One time guaranteed issue through age 64
  • Lump sum, tax-free benefit paid 12 months after a career-ending accident or illness – even if you can work in another occupation
  • No medical exam or medical questions asked
  • Paid in addition to your in-force coverage – no offsets
  • Enroll in less than 5 minutes
  • Open enrollment will begin July 7, 2015

This benefit is available on guaranteed issue basis, which means no medical exam or medical questions asked. Plus, the benefit is paid in addition to your current in-force coverage with no offsets. The purpose of this plan is to:

  • Provide you and your family with additional protection above and beyond your current disability coverage.
  • Protect your income and retirement contributions if you were no longer able to work due to a career-ending accident or illness.

This special offer is available only until August 14, 2015, when the enrollment period ends. and is possible due to your relationship with Danna-Gracey. Please contact Wes Caldwell at 888-284-4196 if you have any questions about this unique program.

The Disability Insurance Problem

When you have an accident, illness or stroke that prevents you from working in your own occupation, probable results include:

  •  Your current disability insurance will not replace your pre-disability income.
  • Contributions to your retirement plans usually stop.

A disability can devastate your family’s lifestyle and cause a catastrophic loss of your retirement funds at age 65.

Acquiring more disability insurance is the answer, however:

  • Most insurance companies strictly limit the amount of insurance they will allow highly-compensated individuals to buy and these limits can be particularly severe for physicians.
  •  The insurance companies have rigid underwriting requirements that may prevent someone with medical impairments or conditions from buying more insurance at any price.

The Danna-Gracey Members Advantage

Danna-Gracey has negotiated a disability program that will pay you up to $3,000,000 in lump sum benefits if you have a disability that prevents you from working in your own occupation.

  • The plan is provided on a guaranteed acceptance basis without a medical examination or the need to answer medical questions. You may be able to obtain this benefit on a guarantee issue basis if you have been actively at work full time for the past 180 days prior to the introduction of the plan, and have not received disability insurance benefits in the last five years.
  • The plan benefits are not offset or reduced by payments from other insurance contracts, or social security.
  • The plan benefits are written on a group basis with discounted rates.
  • The plan benefit is 100% portable.

How the Plan Works

Here is an example:

Ralph Jones is a 54-year-old surgeon whose total earned income is $425,000. After having a career ending accident or illness that income – and ALL his retirement plan contributions – stop.

While Dr. Jones has the benefit of an individual disability policy of $10,000 a month, that income is not sufficient to protect him and his family from experiencing a painful loss of income and change in lifestyle.

Assuming Dr. Jones were to retire at age 65, the loss he and his family will incur is a staggering $4,250,000*.

Now Dr. Jones can buy a guaranteed issue lump disability policy through Lloyd’s of London up to $3,000,000 in benefits.

For more information on the unique benefit, contact Wes Caldwell at 888.284.4198.

Disability Program Q&A

What is the purpose of the lump sum disability insurance plan?

The purpose of the plan is to provide you with additional tax-free disability insurance benefits to help you and your family maintain your standard of living – and to continue your retirement contributions – when you have an accident, illness or stroke which prevents you from working in your own occupation.

How much disability insurance can I purchase?

Your maximum guaranteed issue benefit available cannot exceed 10x earnings up to a maximum of $3,000,000.

What happens if I don’t obtain coverage during my initial enrollment period? But, I decided I want coverage in the future. Can I still apply without providing medical evidence of good health?

To qualify for guaranteed standard issue coverage, you must apply during your initial enrollment period and have been actively working for the 180 days prior to, including the date of your application and not have received disability benefits in the past five years. If you do not enroll during your initial enrollment period, in order to obtain coverage in the future, proof of good health is required by answering medical questions and/or having a medical examination.

What happens if I don’t apply for the maximum guaranteed issue benefit that is available during my initial enrollment?

You may be required to show evidence of insurability (proof of good health) and/or a medical exam for future increases under the guaranteed issue program

Can I apply for more than the maximum lump sum benefit?

Yes, if you qualify you can apply for additional lump sum benefits with full financial and medical underwriting requirements.

When is the benefit payable?

When you are Permanently and Totally Disabled and the 12-month Elimination Period has been met.

What does “Permanently and Totally Disabled” mean?

That as a result of a covered injury or sickness, you are permanently and totally unable to perform the substantial and material duties of your practice or specialty, as shown on your policy certificate for 12 months; you are not expected to be able to perform those same duties for the remainder of your lifetime; and you are under the regular care of a physician that is appropriate for the condition causing the disability.

What are some examples of how the definition of disability works?

A physician has Parkinson’s and can no longer conduct the daily activities of his practice.

The claim will be paid as it is not expected he will be able to continue his practice due to the effects of the disease. A dermatologist has a serious stroke and can no longer practice.

If the residual effects of the stroke – such as a partial paralysis of an arm or leg, or the inability to speak clearly – are expected to prevent her from ever performing the substantial and material duties of her specialty, the claim will be paid.

A surgeon loses the use of his hand in an accident.

He will be paid because he will never be able to perform the duties of a surgeon.

A surgeon suffers from Multiple Sclerosis and is no longer able to operate, but can still teach and provide cognitive professional services.

She will be paid because she is not expected to be able to practice in her specialty as a surgeon even though she can work in another occupation. An ENT physician is treated for colon cancer with surgery and radiation and can no longer perform procedures in the operating room (OR) due to his inability to stand for the full length of a procedure. If he recovers from the effects of his treatment and is expected to return to performing all of the material duties of his practice he will not be paid. On the other hand, if the residual effects of the surgery and radiation are expected to make it impossible to perform standard OR procedures to treat eye, ears, nose or throat conditions, the claim will be paid even if he can work in another occupation.

These are hypothetical claims examples to demonstrate what “Permanently and Totally Disabled” means. All claims will be decided in terms of their actual conditions and circumstances.

I already own a Lloyd’s of London disability policy, can I apply for additional benefits?

Yes, but your current in-force benefit plus the new benefit that you are applying for cannot exceed the maximum guaranteed issue amount for which you are eligible.

Is the benefit tax-free?

Yes, all benefits are income tax-free under the IRC Section 104(a)(3) if the premiums are paid with after-tax dollars.

Should I replace any of my existing disability with this policy?

No, the policy is designed to be used to supplement your existing coverage, not to replace it.

How do I qualify for guaranteed issue?

To qualify for guaranteed issue, you must have been actively at work full-time in your practice for 180 days preceding the open enrollment period, have annual net earnings of at least $100,000, and have not been paid disability benefits in the past five years.

Are premiums waived after I become disabled?

Premiums are due during the 12-month period after the start of a disability. At the end of the 12 months when you have been paid your lump sum benefit, all of the premiums paid during this 12-month elimination period will be refunded to you.

Who is the insurer?

Lloyd’s of London. Its current financial ratings are:

Standard and Poor’s A+ (Excellent) Fitch A+ (Excellent) A.M. Best A (Excellent)

At the end of the five-year period is it possible that the premium schedule can be changed or that the insurance company will not renew the policy?

The policies are written for a term of five years and premiums are guaranteed for that time. At the end of the term, the insurance company has the option to renew the policy and to adjust the rates based on new census population and experience.

When will the insurance be effective?

The effective date as shown on the policy.

At the end of the five-year period what must I do to renew my coverage?

You will need to provide a new income statement, verification of your occupation and it will be subject to underwriter approval.

If I have not been actively at work for the past 180 days or have received disability benefits in the past five years, will I be denied coverage?

Not necessarily. It depends upon the condition that caused the interruption in work or the disability.

What happens if I apply for coverage and then decide I don’t want it?

You can return your certificate within ten days of receiving it and receive a full refund of your premium payment.

What conditions are not covered by the policy?

If the loss is caused by, or the result of:

  • Being under the influence of narcotics or intoxicants.
  • Any psychosis, neurosis, or neuropsychiatric illness including, but not limited to any emotional anxiety or depression illness.
  • Attempted suicide or an intentionally self-inflicted injury.
  • Travel on aircraft for test purposes, on military aircraft, serving as a pilot or crew member or taking a flying lesson.
  • Participation in a riot, service in the military, or committing or attempting to commit a felony.
  • Losses from any act of nuclear, chemical, or biological terrorism.
  • Nuclear reaction, radiation, or contamination (not related to occupation).
  • A pre-existing condition.

What is a pre-existing condition and how might it affect the coverage?

A pre-existing condition is one for which (1) an insured received medical advice, or treatment was recommended or received from a physician during the 12-month period before the effective date of coverage, or (2) had symptoms that were present during this 12-month period that would cause a reasonably prudent person to seek advice or treatment from a physician.

The policy does not provide benefits for a loss due to a pre-existing condition unless the loss begins more than one year after the effective date of the policy certificate, or the insurance company has agreed to cover it.

Where can I view my premium rates and how do I enroll?

Enrolling is simple and should take less than five minutes with no paper applications. Open enrollment will begin July 7th, look for more details coming soon.

This Questions and Answers material is a summary of important policy provisions. It is not a contract or proposal. In all cases, the actual terms and provisions of the policy will govern.