Important Life Underwriting Update

Throughout the rapidly evolving pandemic, Mutual of Omaha has been continuously evaluating our underwriting and new business practices to support business continuity, deliver a consistently high level of service, and maintain our financial strength. As a result, effective Wednesday, April 15, 2020, we are implementing the following temporary changes to our life insurance underwriting guidelines. These changes apply to all fully-underwritten life insurance cases that are not already approved or issued. This includes any newly submitted and pending in-house cases, whether formal or informal. Postponements Due to International Travel All fully-underwritten life insurance cases where the proposed insured has plans
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Categories: COVID-19, Industry News, Life Insurance, and Mutual of Omaha (& Affiliates).

Increased Simplified Underwriting Amounts for Disability Income

Mutual of Omaha is committed to helping you continue to meet the income protection needs of your clients. We have good news to share, to make it easier to sell disability income insurance. Effective immediately, we are making the following enhancement to new applications for simplified underwriting guidelines: Increasing the amount from $3,000 to $6,000 of monthly benefit Advantages of Simplified Underwriting: Ages 18-45, no labs up to and including $6,000 Age 46+ blood urine, physical data No financial requirements up to and including $6,000 monthly benefit, all benefit periods* *If requesting the self-employed discount, two-year financial documentation will be
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Categories: COVID-19, Disability Income Insurance, Industry News, and Mutual of Omaha (& Affiliates).

The Risk is Real

While most people don’t think twice about purchasing auto, homeowners’ or even life insurance, they often fail to realize that their most valuable asset is their ability to earn an income. Suffering a disability for any length of time because of a sickness or injury could have devastating financial consequences for clients. Here are some insights into how real the risks are: At least 51 million working adults in the United States are without disability insurance other than the basic coverage available through Social Security. Only 48 percent of American adults indicate they have enough savings to cover three months
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Categories: Disability Income Insurance, Industry News, and Mutual of Omaha (& Affiliates).

Supplementing Disability Income Insurance Coverage

Some consumers may have a disability income policy insurance through their employer, it’s important to ask them about how the policy would pay. Consider whether the policy’s monthly benefits would begin to pay benefits soon enough. Clients need to understand their existing coverage to help solve the protection gap. One solution is to supplement current employer coverage with an individual short-term disability income insurance. Short-term coverage can help pay monthly benefits sooner than an employer’s long-term disability insurance policy. And it can pay up until the time employer-sponsored benefits begin. As a producer, you can provide more complete income protection
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Categories: Disability Income Insurance, Industry News, and Mutual of Omaha (& Affiliates).

Tax Advantages of Disability Income Insurance

The taxation of disability income insurance is straightforward – especially in individual cases. However, surprises can occur if policies are set up incorrectly as unexpected taxation of a benefit reduces available funds at precisely the wrong time. Individual DI In terms of taxes, individual DI is rather clear cut. Premiums paid by individual policyholders are non-deductible as they are not considered an eligible medical expense on Schedule A. Also, benefits are not included as income and therefore not taxable. Employer-Paid DI In disability income cases where a business entity is involved, the tax implications are varied. Here are some common
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Categories: Disability Income Insurance, Industry News, and Mutual of Omaha (& Affiliates).