Disability Insurance as a Resident

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  • Scott at MD Financial Services Scott at MD Financial Services 
    Status: Website Sponsor, Insurance Agent, Small Business Owner
    Posts: 429
    Joined: 01/14/2016

    The Benefit Update (BU) is a different process for increases since thus it is not based on a multiple of base benefit. When using a BU process we can purchase a $1500 or so benefit for a resident and still control increases to $20,000 per month. Now when one uses this BU process it is controlled by the carrier and not the individual so there are some pretty strict guidelines one has to follow.

    Tim is right that a traditional future purchase option process really does not work for the above strategy due to the FPO being a multiplier of the base benefit process thus if you buy $1k you get $3k of Future Purchase Options and that typically does not do the trick. The pro to the traditional process is the client controls the feature and when utilized then the cost for the FPO goes away.

    S. Scott Nelson-Archer, CLU, ChFC with M. D. Financial Services, Inc.
    Direct Phone 713-966-3932, Email [email protected]

    #213646 Reply
    SerrateAndDominate SerrateAndDominate 
    Status: Physician
    Posts: 468
    Joined: 02/01/2018

    I planned on reaching out to the NWM agents that administer the group policy to inquire about an additional individual policy.

    Click to expand…

    Just don’t

    Earn everything.

    #213676 Reply
    Liked by Tim, CordMcNally
    Status: Website Sponsor, Insurance Agent
    Posts: 261
    Joined: 01/08/2016

    While there are certain restrictions on increase options like the Benefit Update (BU) Rider, they can also be used to one’s advantage. I describe this in the “Lease with the Option to Buy” Strategy in this guest post

    You might find it to be informative.

    Lawrence B. Keller CFP®, CLU®, ChFC®, RHU®, LUTCF I (800) 481-6447

    #213822 Reply
    Liked by jfoxcpacfp, Tim

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