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High Limit

Another area of disability underwriting is financial. Insurers have what are called issue and participation limits, which are charts that indicate the amount of benefit they will issue based on income and other coverage in force. These charts reflect the minimum and maximum benefit amounts. Depending on how high your income is, or how much coverage you already have in force, you may be capped at an amount that represents a small percentage of your income. Disability coverage replaces only a portion of your income, not all of it. Generally, that percentage is less than 70% from all sources, capping, at the high end, around $20,000 per month for select occupational classes, regardless of income level.  What if you have a very high-income earner, such as a celebrity or high profile CEO who is looking for more coverage? There are a few carriers that specialize in these High Limit products, and all of them are in some way affiliated with the main one, Lloyd’s of London. See the Financial Underwriting & Taxation file in Broker Resources.


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