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Unisex Rate Disability Insurance Policies and Future Increase Option (FIO) Exercises

Home Insurance Unisex Rate Disability Insurance Policies and Future Increase Option (FIO) Exercises

  • LBKCLU LBKCLU 
    Moderator
    Status: Website Sponsor, Insurance Agent
    Posts: 258
    Joined: 01/08/2016

    There seems to be some confusion in the marketplace as to how things are handled when an increase option is exercised on a policy that was issued with unisex rates. When an increase option is exercised from a policy that contains unisex rates, any additional coverage will also be issued with unisex rates – even if the carrier that issued the existing policy is no longer offering unisex rates to new applicants.

    However, should the carrier only offer gender distinct premium rates with a discount on a going forward basis, any new policies issued, other than those issued as a result of an increase option on an existing policy with unisex rates or by taking advantage of the “Right to Apply for Additional Benefits”, based upon the fact that a policy with a unisex rate and a discount is already owned by the insured, would be based upon gender distinct rates, assuming that is what would be available to new applicants at the time of the purchase.

    2019-77961 Exp. 04/11/2021

    Lawrence B. Keller CFP®, CLU®, ChFC®, RHU®, LUTCF
    http://www.physicianfinancialservices.com I (800) 481-6447

    #206544 Reply

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