Illinois Mutual
Simplified Issue Disability Income Insurance (SIDI)
An Individual Short Term Disability Insurance product
Policy form WSD07 (WD13 in FL, GA, MD, SC)
Product Review Highlights
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Available to individuals on a standalone basis, independent of any employer, in all states except AK, CA, CO, DC, HI, ME, MT, NH, NJ, NM, NY, OR, RI, and VT.
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The Benefit Period is generally 12 months. There are options for 3 months, 6 months, and 24 months in most states.
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Coverage is Guaranteed Renewable to age 72.
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Pregnancy is treated the same as any other condition, subject to a special 9 month probationary period as measured from the policy effective date, in order to limit the predictable abuse this would otherwise invite for applicants that are already pregnant. Refer to exclusion item (k).
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The qualifying process is much less rigorous than most other individual disability insurance products.
Medical Eligibility
No exam is required. The medical questions on the application are as follows:
A. In the past 10 years, have you tested positive for, or been diagnosed by a medical professional with, Human Immunodeficiency Virus (AIDS virus) or Acquired Immune Deficiency Syndrome (AIDS?
B. In the past 12 months, have you been diagnosed, treated, given advice, or prescribed medication by a medical professional, or been hospitalized, for any of the following:
(1) Heart Attack or Heart Surgery
(2) Congestive Heart Failure
(3) Stroke/Transient Ischemic Attack (TIA)
(4) High Blood Pressure treated with 3 or more medications
(5) Insulin Dependent Diabetes
(6) Cancer (except basal cell skin cancer)
(7) Hepatitis B
(8) Hepatitis C
(9) Cirrhosis 9
(10) Kidney Disease (except stones)
C. In the past 6 months, except for colds, flu, or normal pregnancy:
(1) Have you taken time off work for 5 or more consecutive days due to a physical or mental impairment, sickness, or injury?
(2) Have you had restrictions or limitations such that you were unable to perform all of your regular occupational duties?
Exclusions
(a) War or act of war, whether declared or undeclared
(b) Riding in or driving any motor-driven vehicle in a race, stunt show or speed test;
(c) Operating, learning to operate, serving as a crew member of or jumping or falling from any aircraft, including those which are not motor-driven. This does not include flying as a fare paying passenger;
(d) Engaging in hang-gliding, bungee jumping, parachuting, sailgliding, parasailing or
parakiting or any similar acitivities;
(e) Participating or attempting to participate in an illegal activity and/or being incarcerated in a penal institution;
(f) Committing or trying to commit suicide or injuring yourself intentionally, whether you are sane or not;
(g) Addiction to alcohol or drugs, except for drugs taken as prescribed by your Physician;
(h) Practicing for or participating in any semiprofessional or professional competitive athletic contest for which you receive any type of compensation or remuneration;
(i) Having a neurosis, psychoneurosis, psychopathy, psychosis, or mental or emotional disease or disorder of any kind. However, Alzheimer’s disease and other organic senile dementias are covered under this Policy;
(j) Having an On-Job Accident, unless an On-Job Total Disability Benefit is shown in the Schedule*;
(k) Giving birth as the result of a normal pregnancy, including Cesarean, within the first nine months after the Policy Effective Date as shown in the Schedule. Complications of a pregnancy will be covered to the same extent as any other sickness.
There is a limitation for pre-existing conditions (defined broadly enough to include symptoms) which will be in effect for the first twelve (12) months of the policy's existence. Expect any claim that is filed within the first year of the policy's existence to face a heightened level of scrutiny.
* The On-Job Total Disability Benefit referred to in item (j) will automatically be included for individual purchases, making this exclusion inapplicable and effectively making this 24 hour coverage. This exclusion is relevant for coverage obtained through an employer, where On-Job coverage is optional.
The above commentary is intended for financial professionals. Treat this as a market overview. Policy language may vary by state and individual.