As the population changes, businesses respond to the needs of their various markets. The insurance industry is no different. At Treloar & Heisel, we work with many large national companies that offer insurance products. Our job is to keep a pulse on the market, assess what’s available and evaluate best fit for our clients on a case-by-case basis.
One of the companies that has recently made changes to its disability income product is MassMutual. What’s changed, and why should you care? Read on!
Let’s start with some terminology
If you’re in the market for disability income insurance, you need to understand the concept of the “rider.” The rider is an enhancement to your policy that provides you with additional coverage under specific circumstances. Riders are available as a supplement to the policy, sometimes at an additional cost.
Here are some of the features that MassMutual has recently added to serve the needs of millennial professionals.
The Student Loan Rider
College loans are a primary financial concern for millenials. A student loan rider provides a monthly benefit during periods of eligible disability for the purpose of paying student loan debt. MassMutual’s student loan rider provides monthly benefit amounts from $100 to $2500 with a benefit period of 10 or 15 years from the policy date.
The Benefit Increase Rider
This rider allows you to increase your insurance coverage in the future without a medical exam. Where’s the catch? You do have to show financial insurability (meaning your income needs to stay the same or increase), and if you choose this rider, you need to re-apply every three years to keep the rider in force. The benefit increase rider is not to be mistaken with the future increase option, a feature that allows for increases every year based on qualifying financially. The future increase option continues to be available to you.
The ‘Actively at Work’ Endorsement
Recognizing that not everyone wants to (or can) work a full 40-hour week, this endorsement allows flexibility for people who don’t work a ‘standard week.’ Historically, you had to work at least 30 hours a week to be able to qualify for disability income coverage. This new feature allows people who work only 20 hours to qualify (all other eligibility requirements still apply).
Extended Benefits Periods
People are living longer, and working longer. In recognition of this fact, MassMutual has updated its benefit periods for its disability income insurance product. In the past, you would have been covered until age 65 or 67 – now that has been increased to age 70.
How will you pay for it?
Last but not least, a word about cost. This is not a new feature, but it’s important, so it bears repetition. MassMutual continues to offer two premium structures. “Graded” premiums allow coverage to be less expensive early on in your career, and gradually increase over time. “Level” premiums are exactly that: equal over time.
Pick the one that’s right for you, and best of luck in your dental career!
~Scott Fehrs, ChFC, Chief Executive Officer, Treloar & Heisel, Inc.
This content is sponsored and does not necessarily reflect the views of ASDA.