Blasts & News

There are many changes taking place in the Long Term Care and Disability Insurance industries these days. The information comes from many different sources, and it can be quite confusing at times to put all the pieces together and make sense of it all. At NJLTC we send out several email newsletters , "Blasts" as we call them, a month. We keep our clients, brokers, and producers informed of all the relevant news, topics, and product updates that take place in our industry. Feel free to browse our archive of Blasts and News articles.


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August Underwriting Updates Aug 14, 2020


Principal Underwriting Updates, New TransAmerica Underwriting Guide, and MOO Lifts Age Restrictions in Additional States

As we make our way through this ever changing Pandemic world, underwriting rules from our various carriers continue to evolve. Here is an update from three of our preferred carriers – Principal, Mutual of Omaha, and TransAmerica.

PRINCIPAL
In April, Principal implemented temporary adjustments to their underwriting guidelines to help clients continue to get the coverage they need, while requiring less medical information during difficult times. The temporary guidelines will expire July 31, 2020. Principal is excited to now announce the traditional guidelines that go back into effect August 1 will feature new, more liberal limits for many of your clients. See their full statement below -

Higher lab and physical measurement limits
During the course of COVID-19, we did in-depth analysis of our limits. We feel these new limits strike a great balance of convenience for you and your clients, and a sufficient level of information for us to be able to make good underwriting decisions.

Effective August 1, your clients age 50 and younger will have no lab or physical measurement requirements for the following products and benefit amounts:

  • Disability Income: up to $10,000 per month
  • Business Overhead Expense and Business Loan Protection rider: up to $25,000 per month
  • Disability Buy-Out and Key Person: up to $750,000
All other guidelines remain as they were pre-COVID-19.

Additional things to know
  • Limits for applications where the applicant is a resident of California or New York return to pre-COVID-19 levels:
    • Disability Income: up to $6,000 per month
    • Business Overhead Expense and Business Loan Protection rider: up to $10,000 per month
    • Disability Buy-Out and Key Person: up to $360,000
  • Multi-life cases, ages 51-64, will have pre-COVID-19 limits of $6,000 per month for Disability Income, $10,000 per month for Business Overhead Expense and Business Protection Rider, and $360,000 for Disability Buy-Out and Key Person.
  • The new benefit limits do not apply to:
    • Income verification limits for Simplified DI
    • The Medical Resident Program
Transition guidelines
There will be a 30-day transition period for business quoted prior to August 1 and where the permanent guidelines are less favorable than the temporary guidelines. To be underwritten based on the temporary guidelines, a case must have an illustration dated prior to August 1 and an application received in the home office by August 31.
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