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Unisex Rates in MA starting January 1, 2020

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  • Unisex Rates in MA starting January 1, 2020

    Effective Jan. 1, 2020, Massachusetts is requiring all disability income policies to be issued on a gender-neutral (unisex) basis. These changes apply to disability policies and Business Overhead Expense contracts.
    In compliance with Massachusetts’ regulation the carriers will administer disability income policies as follows:
    1) All new Massachusetts individual disability income policies will require unisex rates, if they are issued or delivered after Dec. 31, 2019. a. If sex-distinct rates were illustrated in 2019, but the policy was not issued or delivered until after Jan. 1, 2020, the case will need to be re-illustrated using unisex rates and the policy reissued on that basis. The Massachusetts regulation does not allow for any transitional period following Jan. 1, 2020.
    2) Increases from existing in-force policies (issued and delivered prior to Jan. 1, 2020) are not subject to the unisex mandate. Meaning, increases from the Future Increase Option and Automatic Increase Riders will follow the original rate basis of the in-force policy.

    This will be great for females but it will make males more expensive so if you are a male, thinking about obtaining disability insurance and living in MA, get it done now! If you are a female, I would get it done but hold the policy to be issued in 2020 for the unisex rates.

  • #2
    god forbid we let insurance accurately price their products


    • #3
      Huh. I would have thought women’s disability policies would be cheaper than men’s. Interesting.


      • #4
        The last thing needed is government getting involved with DI rates. Opps!
        Would have been beneficial one year ago. I don't care if what government does as long as it doesn't raise my taxes. Opps!
        Government has a way of always screwing my family. Opportunity lost.


        • #5
          Originally posted by Bmac View Post
          Huh. I would have thought women’s disability policies would be cheaper than men’s. Interesting.
          I may be mistaken but I think it’s largely due to pregnancy and postpartum related issues


          • SerrateAndDominate
            SerrateAndDominate commented
            Editing a comment
            That’s what I’ve read/heard, too. I figured guys would cost more because we do boneheaded stuff at an alarming rate

        • #6
          By the way, if a female had already bought a policy in the last few years with sex distinct pricing there is nothing wrong with getting that re-priced lower with unisex rates come 2020...