Eugene Cohen

With the help of Victor Cohen, this is part of our ongoing series with Eugene Cohen, founder of the Eugene Cohen Insurance Agency, Inc., 2009 Honoree International DI Society W. Harold Petersen Lifetime Achievement Award, 2015 Honoree of NAILBA’s Douglas Mooers Award for Excellence.

From time to time, we will feature an interview with Eugene, who has dedicated over 60 years of his life to learning, teaching, and supporting brokers in the agency’s quest to help consumers protect their incomes from the tragic effects of a disability. 

Disability insurance (DI) is one of those products that can change the trajectory of an individual and a family’s life and is crucial for every financial planner and insurance professional to learn about and offer to clients.

Victor: With all the many years you have worked in the Disability Insurance Industry, please share with me something important you may have learned early in your career that still has an impact on you.

Eugene: I will always remember the first day I started working in the Disability Insurance business. I was in my early 20s, out of college, excited and motivated to begin my career. 

The insurance agency manager who hired me told me that my job as a producer was simple. “Eugene, just make sure your clients understand why they need Disability Income Protection Insurance. Answer the question, ‘Why?’ That’s your most important responsibility. When the client understands the need for DI, they will want it.”

That word, “why,” has stuck with me ever since. There is always going to be a reason “why” we need something. And it’s our duty to provide the answers. 

But not only does a producer need to understand why their client needs the product the producer is offering, the producer needs to believe in the product themselves. 

Victor: So, I have to ask. Why do most clients need Disability Insurance? 

Eugene: Well, if a client were disabled and could not work, naturally income would likely stop or be greatly reduced. So, the client would very likely need to replace a portion of that lost income to cover life’s non-cancelable financial obligations such as paying the monthly mortgage, buying groceries, and paying utilities. 

Victor: There are questions a producer can ask to help the client answer why they may need DI. Can you go over a couple of those questions?

Eugene: The producer can ask their client, “Is earned income important to you?” If they answer yes, then there’s the reason why the client very likely needs an income protection disability insurance policy. Because what often stops when work stops? Income. 

The producer can also ask, “What’s the longest vacation you have ever taken?” Most likely they will answer, “One or two weeks.” Then they can ask the client, “Why don’t you ever take a month or two-month vacation?” Most likely the client will answer that they could not be away from work that long. They would need the income. 

Then the producer can ask them, “Well, what if you could never work again due to sickness or injury? How would you financially survive?”  And there’s the answer why the client very likely needs Income Protection Insurance. 

Victor: I know that you are a student of life. And you recently had a personal experience that in some ways reminded you of the relationship a producer has with their client. But in this case, you were getting your annual review from your air conditioning service person.

Eugene: That’s right. Where I live it can get extremely hot, well into the 100s in the summer. So, every year we meet with our air conditioning person for an inspection and review. 

Victor: Much like a producer meets with their client for their annual review. 

Eugene: In some ways, yes! So, this individual came out, looked at our air conditioning units, and then told us that we needed to replace one of them.

Victor: And all the units are blowing beautiful, cold air right now, right? No problems? 

Eugene: They’re working perfectly. So, naturally, my wife and I were surprised by the service person’s recommendation. We asked, “Why?” Why would he suggest we need to replace a seemingly perfectly working AC unit? Why would we think for a second of spending a ton of money on a new one? 

Then the service person did something very familiar to me. To answer “why” we needed a new unit, he asked us questions. “Mr. and Mrs. Cohen, what would happen if the unit stopped working during the summer?”  The answer…we knew all too well. Our expensive wood floors could get destroyed by the brutal summer heat–especially if we were out of town for a while.

The service person also pointed out that the unit was quite old and well past its warranty. The unit was clearly living on borrowed time. Another fact that we had not realized. 

The service person pointed out that while the unit was blowing cold air today, that was only due to good fortune and luck. The service person asked us other very good questions to help us see why there is a very legitimate need for us to replace the unit. 

Victor: So, are you getting a new AC unit?

Eugene: We are thinking about it. And only because the service person was so prepared with his answers about why replacing the unit actually makes sense. 

The experience reminded me of what a good producer does. The producer has an annual review with their client. When the producer sees that DI is needed, they help the client understand why DI is needed. While a new AC unit may perhaps save my floors and keep me cool in the summer, a DI policy could protect a policy holder from financial ruin. 

Victor: As we know, there are some producers who do not bring DI up in their client reviews. Let’s answer that “why.”  Why do producers need to bring DI into the conversation with clients?

Eugene: Because DI is an important product that the client should have the opportunity to purchase. 

Imagine a producer gets a call from a client’s frantic spouse who says, “My husband had a very serious stroke and there is a good chance he will never work again. Do we have one of those policies that will pay us some of his lost income?”

The producer will have one of three answers. 

The first answer is, “No. That product is called a Disability Insurance Policy, and I never presented it.” That is obviously not a good answer. 

The second answer is, “I presented that product to your husband, but they said they were not interested. They signed an acknowledgement that I presented at that time saying that they chose not to apply.”

The third answer is, “Yes, I presented DI to your husband, and he has a disability policy. We can put the claim into the company to see if it is a qualified claim.”

Victor: This has been such a great conversation. Thank you, as always. Before we go, is there anything you would like to add?

Eugene: I think about why I went into this business so many years ago. And the reason I went into it then…is the same reason I am in this business today. And that reason is to help people. 

Many clients need Disability Insurance. Things happen. Life can be unpredictable. Knowing I have done all I can to tell people about this amazing product that can help clients protect what is often their most valuable asset–their ability to earn an income–is extremely rewarding. 

With the help of Victor Cohen, this is part of our ongoing series with Eugene Cohen, founder of the Eugene Cohen Insurance Agency, Inc., 2009 Honoree International DI Society W. Harold Petersen Lifetime Achievement Award, 2015 Honoree of NAILBA’s Douglas Mooers Award for Excellence.

From time to time, we will feature an interview with Eugene, who has dedicated over 60 years of his life to learning, teaching, and supporting brokers in the agency’s quest to help consumers protect their incomes from the tragic effects of a disability.

Disability insurance (DI) is one of those products that can change the trajectory of an individual and a family’s life and is crucial for every financial planner and insurance professional to learn about and offer to clients.

Victor: I’ve heard you say that every client falls under one of four categories when it comes to individual disability insurance.

Eugene: That’s right, Victor. And by identifying which category your DI client falls under, the producer can tailor make the way they discuss DI with that client.

Victor: So, let’s talk about category number one.

Eugene: This is the client who doesn’t have any disability income protection insurance at all. No individual DI. No Group LTD.

With this first type of client, I ask myself, why don’t they have DI? This client could be a 45-year-old owner of an accounting firm…or maybe the client is a 28-year-old W-2 engineer.

Could it be that no producer has ever approached this type of client about DI? Or could it be that this client was approached in the past but did not see the need for DI?

Victor: How does the producer discuss DI with this type of client?

Eugene: We have to get the client to understand the need for disability income protection. How do we do that? We ask questions.

Victor: What are some of the questions you’ve personally found to be the most effective?

Eugene: I’d ask the client, “How important is your earned income?” The client will usually say their income is extremely important to them. Then I’d ask, “If you were sick or hurt for a long period of time, what are you doing to protect that earned income?” The producer can then remind the client that this type of insurance will protect a portion of the client’s income.

Another question to ask is, “If you had a money machine producing X amount of dollars every month, would you insure it?” The client quickly responds, yes, as if the answer is obvious. The producer can then point out that the client is that money machine and there is a DI policy to protect it.

One more question to ask is, “What is your greatest asset? Is it your home? Your car? Or your future income?” In most cases it’s the individual’s future income—it’s their ability to earn an income. We need to protect that.

Victor: I know that you’ve had disability income protection insurance throughout your entire career. And I love how you talk about a DI policy.

Eugene: I have considered that DI policy to be my “silent business partner.” If I were disabled due to a sickness or an accident, that policy would pay a portion of my income if I had a qualified claim.

Victor: That’s such a great way to look at an individual disability insurance policy.

Eugene: Having your client think of a DI policy as their personal silent business partner often resonates with the client. It helps them see the need for this very important product.

Victor: Let’s talk about the second type of DI client you have identified.

Eugene: This is the individual who says, “I am well taken care of, I have Group coverage through my employer. I don’t also need an individual DI policy.”

Victor: How do you respond to that?

Eugene: Ask questions. If the individual is a high-income earner, they may also need an individual disability insurance policy.

Victor: How common would you say that is—a client having a Group LTD policy through their employer and also having an individual disability insurance policy?

Eugene: Extremely common. But it almost always takes a producer to point out the need for the individual disability insurance policy.

While having Group LTD is certainly a nice start, for most clients it’s often just not enough. For example, let’s say your client is an attorney earning $400,000 per year and they have Group LTD through their employer.

The first question I would ask the client is what percentage of their income is covered by that Group LTD policy. Let’s presume they say 60 percent.

Then I would ask what the monthly benefit cap is that the Group LTD policy pays. In this example, let’s say the monthly benefit cap is $15,000 per month.

So, with the client earning $400,000 annually, and their Group LTD policy premium being employer paid, and the benefit paying 60 percent of income, with a max monthly benefit cap of $15,000, the client may be eligible to also have an individual DI policy with a monthly benefit of $11,000 to perhaps $11,500 or so—depending on the individual DI company’s issue and participation limits.

Remember, being that the Group LTD premium in our example is employer-paid, the Group LTD benefit may likely be taxable—shrinking that Group LTD monthly benefit to an actual lower after-tax monthly benefit.

Depending on an individual’s income and the details of their Group LTD, sometimes, by layering a DI policy on top of that Group LTD policy, we may be able to add an additional monthly benefit of $5,000, $10,000, $20,000 or more. And if the client pays their individual DI policy premium with after tax dollars the IDI policy benefit may be tax free.

Victor: In addition to perhaps being under-insured by having only a Group LTD policy, there are often other limitations with many group policies.

Eugene: That’s right. For example, a Group LTD policy is often not portable. Let’s say your client is working at a company where the client gets Group LTD and eventually the client changes jobs, moving to a company where Group LTD is not offered. If the client didn’t have an existing individual DI policy, they’d probably want to apply for one.

But what if the client is uninsurable and unable to medically qualify for a new DI policy? Or, what if the client has health issues that will be excluded on a new DI policy, that would not have been excluded had the policy been purchased years ago when the client did not have those health issues?

The client, of course, would have been in a much better situation had they purchased an IDI policy when they were healthy—long before they lost their Group LTD.

Also, with many individual DI policies, the policyholder may be able to obtain additional future coverage with no medical underwriting, depending on the client’s age and other policy provisions when the policy was issued.

Victor: Let’s talk about that third category of DI clients.

Eugene: These are the clients who say, “I am well taken care of. I have an individual disability insurance policy. I’m all good.”

Always ask to review the client’s policy. You want to see how long ago they purchased it. You may be surprised!

I ran into an individual who said that at age 32 he bought his first DI policy with a monthly benefit of $5,000—insuring himself in his own occupation as a doctor of dentistry. He was paying his premium with after-tax dollars so the benefit would be tax free.

Then, 19 years later, the dentist purchased a second DI policy with an additional $5,000 monthly benefit. Naturally, the individual’s income dramatically increased from age 32 to 51.

Look how many years had passed before another agent reviewed this client’s DI policy.

So, guess what happened to this individual at age 53? He had a stroke in his right eye and could no longer work in his regular occupation as a dentist. He was considered totally disabled.

Producers need to periodically review their client’s individual disability insurance policy. As income increases, the need for additional DI also often increases.

Victor: And with this type of client, you typically don’t suggest replacing an existing DI policy with a new one.

Eugene: That’s right. For many reasons, layering a new DI policy on top of an existing DI policy is typically in the client’s best interest instead of replacing that original policy.

Victor: Tell me about the fourth and final type of DI client, please.

Eugene: This is the individual who says, “I have Group LTD coverage through my employer and I have an individual disability insurance policy, so I have both policies. I am in great shape.”

If you’ve determined the client is adequately insured after reviewing the client’s Group LTD and individual DI policy (or policies), then plan on doing another DI review with the client next year. A client’s income and DI needs can quickly change over the course of just one year.

Victor: Before we wrap up our conversation for today, thank you as always for sharing your insights and experience. Is there anything else you would like to add?

Eugene: Thank you, Victor. Always a pleasure. There is another unique DI client we have not discussed who I think is important to identify. This client could fall under any of the four categories we just discussed. This is the DI client who is a business owner.

There are very specific, important business DI products that business owners often unknowingly need.

For example, if disabled with a qualified claim, there is a disability business owner expense (BOE) product that would cover many of the business owner’s qualified small business expenses like rent, utilities, and support staff. This is a reimbursement policy.

There is also a disability business loan policy designed to cover a business owner’s loan payments if the owner were disabled with a qualified claim.

What if the business owner client has a key employee critical to the owner’s business? The business owner may want a key person DI policy that would pay the owner’s business a benefit if the key person were disabled with a qualified claim.

Finally, let’s say your business-owner client has a business partner and each partner owns 50 percent of the business. Do they have a buy and sell agreement? They may have funded it with a life insurance policy, paying if one of the partners were to die.

What if one of the partners does not pass away but is instead disabled for a long period of time? Let’s say more than a year. The other partner is going to likely want to buy them out.

Where is that money coming from? Is the remaining owner going to borrow money from a bank to buy out the disabled partner? Is the remaining owner going to sell part of the business to raise money? Is the remaining owner going to buy out the disabled partner with future company profit? Typically, the best way to handle this situation, if possible, would be to fund the buyout with a disability buyout policy.

As you can see, there are many opportunities to protect business owners.

This past August was my (Michael’s) 34th anniversary of working with producers who offer disability insurance. Eugene Cohen has over 60 years of experience, so there’s always been a lot of talk about insurance over the decades in the Cohen household. Especially about the need for disability insurance.

Which brings us to a somewhat recent family event where my daughter and I got into an adult conversation. My oldest daughter is 24 years old and on a career path full of exciting new adventures. The conversation was so engaging that I just had to write about it.

“Dad, I’m being offered something called disability insurance at my new job and wanted to get your opinion,” my daughter said to me, as I was trying to choose which type of Chicago style pizza to have for dinner. Oh the joy of having a child ask me something that I can spend all day talking about. After filling my plate with some local goodness, we found a place in the house where we could eat and chat about the reasons that one buys disability insurance.

It’s funny to think about all the things you want to teach your children and certain insurance you should buy is definitely on the list. We’ve been told that it’s a blessing to teach your children good manners, to respect others, excel in school, how to eat well and take care of yourself. We teach them how to drive, make sure they know how to swim and what to do in emergency situations. At what point do we sit down and teach them about insurance products they really need to buy to protect themselves and their loved ones?

Financial education in life is a topic that appears to be sporadically taught throughout the country. Our local high school has a class that students have a choice to take while they are seniors in high school. The class talks about how to set up a budget, how to pay bills, how to be a financial adult when you are 18+ and out of high school. Unfortunately, insurance planning isn’t in the scope of the class education as it’s hardly discussed. This means that most young people will likely get their initial information from a Google search engine, TikTok, Instagram, YouTube. or from some other online platform. As professionals, we need to make sure our children are well taught about insurance.

There are over a million licensed insurance producers, with most probably having children and grandchildren. Of these million licensed insurance producers, they have millions of clients that they’ve helped plan for retirement and other life’s goals. Of those millions of clients, they have millions of children that also need financial education. We hear that there is concern among financial planners of what happens to their AUM when their client passes? Will the next generation continue with the same financial advisor? There are many factors that go into that decision-making process, but much of it has to do with the producer’s relationships with the next generation.

When was the last time you talked to your children about what you do and why you do it? Have you told your children about the largest claim that ran though your business? What about the claim that made you feel the best when it got paid? You know, that claim that you knew changed someone’s life financially or saved their business? Doesn’t matter the product or product line, we all have them in our memory banks. Feel proud of what we do every day and share it with your children and the children of your clients.

Then we need to lead by example. We need to share the planning that we did to protect our cars, our homes, and our incomes and retirement. Being able to teach our children these products is essential for their protection. Eventually they will be the leaders of our communities, businesses, and hosting the family events.

So yes, my daughter was engaged for the first 30 minutes of “why disability insurance is so important.” Why I had bought disability insurance around her age. How I was concerned that if something happened to me, I didn’t want to move back into my parents’ home. As much as I love my parents and had just a wonderful childhood, at 24 I didn’t want to move back to the suburbs of Chicago if I couldn’t work due to an accident or sickness. How, even at a young age, I had bills and expenses that I’ve obligated myself to pay and if I couldn’t work those bills still needed to be paid. I was on a roll with the insurance talk and then we got interrupted with the calls to help sing Happy Birthday…

With the help of Victor Cohen, this is part of our ongoing series with Eugene Cohen, founder of the Eugene Cohen Insurance Agency, Inc., 2009 Honoree International DI Society W. Harold Petersen Lifetime Achievement Award, 2015 Honoree of NAILBA’s Douglas Mooers Award for Excellence.

From time to time, we will feature an interview with Eugene, who has dedicated over 60 years of his life to learning, teaching, and supporting brokers in the agency’s quest to help consumers protect their incomes from the tragic effects of a disability.

Disability insurance (DI) is one of those products that can change the trajectory of an individual and a family’s life and is crucial for every financial planner and insurance professional to learn about and offer to clients.

Victor: I have often heard you say that you believe one of the most important responsibilities a producer has is to help their client see the need for disability income protection insurance (DI).

Eugene: Yes, that’s right. While some DI clients, like physicians, may often immediately see the need for disability insurance, there are many clients who do not. If the client does not recognize the need for DI, of course, they either will not apply for coverage or the producer may have a difficult time placing the policy.

Victor: In our previous conversations, you have shared that there are typically four objections a producer may face when discussing DI, or really any product, with a client. “No Hurry,” “No Money,” “No Confidence” and “No Need.”

Eugene: Correct. And the “No Need Objection” is the most important objection the producer must overcome because once the client sees the need for DI, other objections that may exist almost always melt away. When a client understands and accepts they need the product, then the need turns into “want” of the product being discussed.

Victor: Over the decades of working with thousands of producers and clients, have you found any specific ways for clients to discover the need for DI?

Eugene: Yes…it’s by asking questions. Asking questions always helps the client to uncover the need. It’s great to see the light bulb turn on.

Victor: What are some questions you suggest producers ask?

Eugene: A great first question to ask the client is, “How important to you is your earned income?” Naturally, most clients will say, “Extremely important.”

Then the producer will follow-up and ask, “What have you done to protect your income if you were to have a serious accident or illness that disabled you for many years?”

If the client says they have saved money, I will ask them, “How much have you saved? What if you could never work again?”

Many hopes and dreams are based on future earned income. Earned income is the foundation of any financial plan.

Another great question to ask a client is, “What is your most valuable asset?” It’s interesting to hear the responses. As we know, in most cases, the client’s most valuable asset is future income.

A client may say, “I’m well taken care of, I have short-term disability through my employer.” Short-term coverage can be important but it’s like insuring the first five minutes of a fire. Many disabilities may disable an individual for years. Parkinson’s, Multiple Sclerosis…the medical dictionary is filled with examples of long, potentially career-ending disabilities.

By asking, “What’s going to happen after being disabled six months,” the client can often better see the important need for long-term disability coverage.

If an individual is disabled for a long period of time without disability insurance, three things will typically happen. First, their cash savings will start to disappear. Then, second, they’ll have to start going into their retirement funds to make ends meet. At a certain point they may not be able to meet their mortgage payments, medical bills, credit card payments and the other obligations we all have to pay to maintain our standard of living.

Victor: So, without adequate DI coverage, the client is not only dealing with the physical and emotional challenges of having a career-ending disability but they are also dealing with the devastating consequences of possible financial ruin.

Eugene: Correct. And for many clients that is perhaps avoidable. That’s why having individual long-term disability insurance is so important. The policy is designed to pay a portion of the client’s income to cover many of those fixed financial obligations that many of us have, such as a monthly mortgage or rent payment, utilities, car payments, groceries, etc.

Victor: So, what if a client says, “I’m well taken care of, Eugene. I have group long-term disability (LTD) insurance from my employer. I don’t need an individual DI policy.”

Eugene: It’s time for the producer to ask more questions. Let’s say a client with group long-term disability is an employee with an annual income of $300,000.

I would ask them, “Does your Group LTD pay a percentage of your monthly income up to a monthly benefit cap?”

After examining the client’s group LTD policy, let’s say it pays a monthly benefit of 60 percent of income up to a monthly benefit cap of $10,000.

My next question will be, “Is your employer paying the premium or are you paying the premium?” In most cases, we see the employer is paying the premium. Then I let the client know that their policy benefits may be taxable.

This means the after-tax monthly benefit may only be approximately 60 percent, 70 percent or 80 percent of what the client thought they would be getting per month. Naturally, if the group LTD premium is being paid by the client with after-tax dollars, that benefit may end up not being taxable.

Some other questions I will ask are, “How long will your group LTD coverage pay you and are you familiar with the conditions that may be considered limited duration claims?” I will also ask, “Is the policy portable–meaning if you leave your employment, can you take that policy with you?” Typically, most group policies are not portable.

These are important questions because many times the client is not aware of the answers. As clients learn from the answers to these questions, they start to realize that group LTD is a nice benefit to have, but it often has shortcomings.

I will then ask the client, “Do you feel it would be a good idea to own your own disability coverage?” The client will most likely see the need and want to apply for an individual DI policy right away.

I will then check with the individual disability insurance companies to see how much additional monthly benefit I can layer on top of the client’s group policy.

Remember. The client is applying for an individual disability insurance policy not because I told them to apply. They are applying for DI because, by answering a series of important questions, they have organically uncovered their need for DI.

Victor: Asking questions can help a client see the need not for just individual disability insurance but also for other important disability insurance products, right?

Eugene: Asking questions is the key to helping clients see the need for all of the different, fantastic disability insurance products that are available to clients.

Let’s say a producer is doing a financial review with two partners who own a business. During the financial review, the producer asks about the partnership agreement and sees the partners have a buy/sell agreement. The producer suggests life insurance to fund that buy/sell agreement or make sure if they have a policy, to have it reviewed. The producer recognizes that there may be an unfunded liability and exposure the partners have created.

The producer then asks, “If one of you has a long-term disability that lasts more than one year, how will you buy your partner out? Will you use business revenues? Or will you obtain a loan? Or will you sell shares of the business to raise capital?”

These are very important questions the business owners may never have considered until now.

You can then say, “There is a disability product that can fund that buy/sell agreement for disability. That product is called disability buyout insurance. I will get an illustration to show you.”

Victor: Business owners tend to have many unique disability insurance needs.

Eugene: Yes, and by asking very specific, laser-focused questions, the producer can help business owners see those disability insurance needs.

When talking with a client who owns a business, I will first ask questions to learn all about the client’s business. And from the client’s answers, I will ask questions that guide the business owner to discover the need for certain disability business products the client may not have been aware existed. Helping a business owner limit their financial risk if a qualifying disability would occur is incredibly satisfying.

For example, I might learn that the client has a valuable high-level manager who has been with the client’s company for many years. I may ask, “That manager is important to your operation, wouldn’t you agree? Would you say that they are a key employee? If this individual were disabled and could not work in your operation, how would that affect your organization?”

After the client shares the many hurdles their company would perhaps face if that key person were to leave the company due to a serious disability, I will say, “Others have the same concerns and that’s why there is something called a Key Person Replacement policy specifically for a disability. It is designed to protect your business if a key employee were seriously disabled for a long period of time.” I will then put together illustrations to review with the client in a follow-up meeting.

Victor: This has been another excellent conversation, Eugene. I could talk with you all afternoon. Unfortunately, we have to wrap things up in a minute. But before we go, what questions do you suggest a producer ask a business owner client to help them see the need for business owner expense disability insurance?

Eugene: Let’s say you have a client who owns a small advertising agency with five team members that support a well-known business owner…and the client already has an individual disability insurance policy protecting their personal income with a benefit period to age 67.
Because this client is specifically a business owner, I will ask, “What are your business expenses such as rent, utilities, phone bills, employee salaries?” After the client responds, I will ask, “If you were to have a disability, these expenses will still have to be paid, correct? How are you going to cover these business expenses if disabled?”

After the business owner sees they would be facing additional financial pressure from the business, in addition to managing a health issue, and in addition to their own personal expenses, we’ll introduce the BOE policy concept. There could be a problem trying to keep their business afloat if they were to be seriously disabled and not working. I will say: “There is something called a Business Overhead Expense disability insurance policy specifically for small business owners. After a 30-day or 90-day waiting period–whatever you apply for, you can get a monthly benefit to reimburse your qualified monthly business expenses for perhaps one year or two years, depending on the benefit period you choose for your policy.

“The policy premium that you pay may perhaps be tax deductible. If you deduct the premium, then the benefit coming in would then perhaps be taxable. But when you pay the expenses going out, those expenses may be tax deductible. I think this policy would help protect your business because you may want to go back to your business after being disabled a year or two. You want to make sure that business is still open.”

Victor, my whole career I have been talking about uncovering the need by asking questions. These are only just a few of questions a producer can ask. I look forward to us talking again soon. Thank you.

Victor: Thank you, Eugene.

A Different Lens On Disability Insurance Needs

Aging sales producers and advisers are like fine wine. The years of experience increase the knowledge and character of the producer that transcends into providing amazing, cogent advice. The longtime producer has the ability to distill personal events and experiences they’ve seen and can share them in the form of stories. Some stories are really obvious and others may be these close calls where any of our products were almost needed.

As you progress through your career accumulating professional and life experiences, you start to see more and more of those close calls. What do we mean by a close call? It’s the “what if” that many of us may play in our heads. For example, a friend of yours, in her 50’s, is still trying to recover from long-covid. Her family has been supportive, but there are a lot of “what ifs” that are being privately discussed. Then there’s the, “Did you hear about so and so’s spouse? Cancer.” Of course, we lend a sympathetic ear, say prayers, and personally help the person and/or family as much as possible.

This phenomenon seems to be more common as we get older. Probably starting in the 30’s you may hear the rare story here and there…then a little more in your 40’s and then it seems to really start hitting in your 50’s and even more in your 60’s. It’s knowing people that are getting sick, going to doctor appointments, taking medications, talking about their ailments…or hearing about a friend of a friend or acquaintance’s recent bad news and possibly their future fight for survival. It’s heart wrenching when we think about it and can keep us up at night. They are the type of thing that can take your mood from great to miserable in a few minutes.

Many of these are not so much about specific Disability Insurance claims, but the almost-claims or could-have-been-a-claim scenarios. What if they don’t get better? What if they need to retire from work so they can have more energy to fight the fight cancer can require? What if that MS diagnosis starts to get more aggressive? What if that back issue gets worse and worse and surgery is going to be needed? You’ve probably heard the stories and thought about these issues as well.

This is why we have disability insurance—so that we can protect our backsides. We can protect ourselves from the “what if” scenarios. DI can help provide some comfort in an otherwise very emotional and most likely, financially tough, months, years, or even decades.

What type of coverage do your clients have? Many of our clients are not only business relationships, but personal relationships as well. What stories have you heard recently of a friend, a family member, or a co-worker being diagnosed with a condition that makes you send prayer emojis?

As you inherently know, what allows someone the privilege of buying an individual disability policy is their good health. Once someone is diagnosed with a serious medical condition, they may not be able to get an individual policy or get one that is as comprehensive, and without exclusions, as when applying with that condition.

It’s sort of ironic, that when you really want something like a disability policy, it may be unattainable due to your health. When your client is healthy, they may be on the fence. But if they don’t get a DI policy today, they may never be able to get a policy again. If not today, when… when they are sick or hurt from an accident…doesn’t work that way.

So beginning today, if you don’t do this already, perhaps add a disability insurance policy review to all of your client appointments. A few things will happen. Client Reaction #1 could be—“I don’t know what that is, please tell me more.” Or Client Reaction #2 could be—“I think I have something at work,” in which case, you need to know if that is short term DI, long term DI, and/or something that actually isn’t disability insurance or something that is minimal? Or you may get Client Reaction #3—“I have a policy that I think is sufficient, but willing to have you take a look at it.”

But if you don’t ask, you will have no idea…unless you possibly get a call about a “what if” scenario. But this time, it could be your client asking the question, “What type of coverage do I have if I can’t work? I was just diagnosed with “X.”

With the help of Victor Cohen, this is part of our ongoing series with Eugene Cohen, founder of the Eugene Cohen Insurance Agency, Inc., 2009 Honoree International DI Society W. Harold Petersen Lifetime Achievement Award, 2015 Honoree of NAILBA’s Douglas Mooers Award for Excellence.

From time to time we will feature an interview with Eugene, who has dedicated over 60 years of his life to learning, teaching, and supporting brokers in the agency’s quest to help consumers protect their incomes from the tragic effects of a disability.

Disability insurance (DI) is one of those products that can change the trajectory of an individual and a family’s life and is crucial for every financial planner and insurance professional to learn about and offer to clients.

Victor: May is a very important month.

Eugene: That’s right. It’s Disability Insurance Awareness Month, which is a great time for advisors to review their clients’ disability insurance needs.

Disability income protection insurance is the best kept secret. Most clients know that life insurance is very important. Car insurance is mandated in almost all the states and is extremely important. In order to get a mortgage, most lenders require that the house is insured. Even without a mortgage, insuring the home is also a must.

I have been involved in the offering of disability insurance for many years. I’ve served clients as a producer, a general agent and regional manager for a company and eventually as an MGA/wholesaler. I’ve never felt more strongly about the importance of a product and have made it my life’s work.

When a client makes the decision to buy an individual disability insurance policy, it’s like hiring a silent business partner. When a client’s income is shattered due to an extended sickness or attempt to recover from an accident and they qualify for a claim, it’s amazing to see how these policies work.

As a producer, I felt so strongly about the product that I carried a lot of disability income protection insurance myself. The reason was that in my own mind, having a DI policy was like having a parachute. I always felt that it was better to have it and not need it…than to need it and not have it.

Victor: I really appreciate how you see disability insurance protection as a vital component of asset protection.

Eugene: It’s so true…imagine one’s future earnings as the most valuable asset your client owns. Let’s say you have an executive who is 45 years old. They have a major accident or are diagnosed with a slowly disabling disease like MS or ALS. They may not be able to work for the next 20 years. If their disability lasts for 20 plus years and this individual was earning $250,000 per year with no raises, then that individual’s disability could cost the client and family potentially over $4,000,000.

The producer needs to recognize this and show the client how to insure a portion of that income. Depending on this individual’s occupation class, they may be able to obtain an individual DI policy with a monthly benefit of approximately $11,000. If that policy premium is paid with after tax dollars, the benefits may be tax free.

Some producers recognize that inflation can really play havoc for those on a fixed income or on a long term disability claim. The planner may recommend that the individual’s DI policy have a special rider called a “Cost of Living Adjustment Rider” (COLA). After this person’s first year of being disabled, their policy’s COLA rider should allow their monthly benefit for the second year to increase. Usually, these riders will use the previous year’s consumer price index and have a cap, but policies may vary. Let’s say the rider continues to allow for increases in future years, also based on the consumer price index. If we experience more inflation, like we have in the past few years, then the total benefit over those twenty years could be significantly higher.

Victor: So, let’s talk about the best way a producer may help their client see the need for disability insurance.

Eugene: When reviewing your client’s insurance needs, ask your client probing questions. They need to start thinking about how they would plan for themselves and their family that’s relying on their income.

Ask, “If you had a money machine that was producing $100,000 per year or $200,000, $300,000 per year, you would want to insure that money machine, right?”

Victor: Definitely.

Eugene: Here’s another question to ask your client to help them discover the need for DI. “How long did it take you to accumulate the assets you have put away? How long has it taken to accumulate your savings?”

After the client answers, then ask, “Walk me through how your finances would work if you had a disability that prevented you from working? Everyone takes sick days here and there. If your sick days never stopped, and if you were disabled for a long period of time, say five, ten years, or even permanently, all the way to 65, how long would it take for your assets to slowly dissipate?” Disability income protection can help protect your assets.

Have you ever looked at a medical dictionary? It’s filled with descriptions of sicknesses that can potentially disable an individual. Multiple Sclerosis, Parkinsons, heart problems, muscular skeletal issues, and of course there are those unexpected accidents…we don’t’ plan on getting seriously ill or having an accident. But we can certainly plan on how we would take care of ourselves financially if something were to happen.

Victor: I know that it’s very important for producers to help clients become aware of the need for individual disability insurance—even if they have Group DI from work.

Eugene: Group Long Term Disability (LTD) insurance is often a great start, but the way that most LTD policies are built, they have limitations that clients may not even know existed. Your clients with higher incomes can usually afford to supplement with an individual policy that they own and is portable.

As an advisor, let’s say you’re reviewing your client’s DI. You see the client has Group LTD and the client says, “The Group LTD is all I need. I’m taken care of. I’m good.” That may not be true.

Take a client of yours that earns $300,000 per year or $25,000 per month. In this example, the client’s Group LTD policy states that 60 percent of the client’s monthly income is covered up to a $10,000 per month cap. If the employer is paying the premium and doesn’t include the cost of coverage in the employee’s income, the benefits may be taxable. After taxes, the client may actually be receiving a true net after taxes monthly benefit of $7,000 or perhaps $8,000. In addition, group contracts are usually built with language in order to protect the insurance company but can create limitations in the policy that most clients don’t know exist.

Taking into account the client’s income and their Group LTD benefits, this client may be financially eligible to add a new individual disability insurance policy on top of their existing Group LTD policy.

That new policy may perhaps pay an additional $9,000 per month disability benefit in addition to their group benefit, assuming the disability qualified for both policies. In some cases, the individual policy may pay a claim or pay a claim for a longer period of time than the Group LTD. The amount of additional coverage will depend on the individual disability insurance company’s issue and participation limits for that client’s occupational class. Also, don’t forget, the client’s individual disability policy should be paid with after tax dollars, so that benefit may perhaps even be tax free.

Victor: You had recommended that a producer watch Real Life Stories from Life Happens. I was really moved watching those videos of real people talking about real claims. Such a valuable tool for a producer.

Eugene: Those videos are so incredibly impactful and another reason why I think lifehappens.org is a fantastic website. This is a consumer website that points out the need for many insurance products—disability income protection insurance, life insurance, long term care insurance, annuities.

The videos on the site allow stories to be heard and felt. You can see and feel the value of disability insurance with these videos.
You’ll find Travis Guthman’s story on lifehappens.org. Have you seen Travis’ video?

Victor: Yes, I have. It’s very powerful.

Eugene: Travis and his wife, Wendy, moved their family and their six young kids to a small town where Travis grew up. Travis and Wendy had the opportunity to buy Travis’ grandparents’ farmhouse and made that their home.

Travis opened up a pizzeria in town as he loved making pizza and making people happy. His new business was doing well. His financial advisor recommended to Travis that he should have disability income protection insurance and Travis luckily followed the advice and bought a policy.

One day Travis was driving through town and somebody sent him a text. Though he knew better, he became distracted and Travis took his eyes off the road and the next thing you know, he crashed into the concrete footing of a narrow bridge.

The accident was just horrific. The injuries were so bad that it has taken Travis almost two years and multiple surgeries to regain the ability to walk again, and that’s with the support of a leg brace.

During this time, Travis hasn’t been able to work. Travis says his family would have lost the pizzeria if it hadn’t been for his disability insurance.

That disability insurance has allowed Travis and Wendy to continue paying their ongoing household bills and business expenses.
Travis says, “I didn’t have to pull money out of the restaurant to live on; instead, I could continue paying the employees and keep things running.” Travis shares, “Without disability insurance we would have been in a world of hurt. You think it will never happen to you, until it does. Disability insurance has been a huge blessing for our family.”

Victor: Travis’ story really shows the need for DI.

Eugene: It’s so impactful and, at the end of the day, it all started with the producer. Without that producer making Travis aware of disability insurance and how important it was for him to have, as you can imagine, Travis’ story would have been much different.

Travis’ experience has also given him a new purpose in life, in which he visits high schools and shows students his accident and all of the trauma he went through. Travis also gives students tools to stay off their phone when they drive.

Victor: Before we wrap up our conversation here, let’s talk about Scott Rider’s story, as his video is also on lifehappens.org.

Eugene: Every producer and their clients also need to see Scott’s video. Scott loved running and was extremely good at it. In college he was a three-time Big Ten champion and a two-time All American.

At 47, Scott noticed one day when he was running that his toes started to restrict. He went to the doctor and it didn’t take long for them to diagnose Scott with Parkinson’s Disease.

Before Parkinson’s Disease, Scott worked 30 years as a financial advisor to individuals and small business owners.

The day Scott was diagnosed with Parkinson’s Disease, Scott says in the video, “I knew right there my life was going to change forever.”

Scott says, “I understood early on that my income was my most valuable asset and I wanted to protect it through disability insurance. It’s expensive to live and those bills just keep coming.”

Being a planner himself, Scott had practiced what he preaches. Scott had group disability insurance provided by his employer and Scott knew that his group disability insurance would not be enough. So, he also acquired individual disability insurance. Again, he was aware of what it would financially take to keep his life going if he were to become disabled.

Scott says that thanks to disability insurance, he and his family did not have to financially suffer. He says, “And without disability insurance, I don’t think I could have afforded my daughter’s wedding. I wouldn’t have money saved for retirement.” He goes on to say, “I am so incredibly grateful that my income continues and makes life possible for my family. It would look so different without disability insurance.”

Victor: Eugene, as always, thank you for sharing your insights and decades of experience in the DI world.

Eugene: Thank you, Victor. During Disability Insurance Awareness Month, we encourage producers to make clients aware of these disability insurance products that are designed to protect their income. The small business owner, the executive, blue collar workers…the need is there. The producer just needs to make the client aware.

I ask the producers reading this: If your client were to become disabled, what story would your client be telling? As a producer, you get to help write the story.

You have clients that need individual disability insurance. They are employees, they are professionals, they are self-employed, they are your clients and, most importantly, when sick days become sick months and then sick years they are most likely going to have financial issues. We know this part is true for most of the clients you work with every day, some may be relatives, some will be friends and neighbors as well.

So, you have a client that makes $50,000, another makes $100,000, a third is making $300,000 and another is making $500,000. You tell your client that you can get them 60 percent of their income for individual disability insurance…or so you thought. Let’s use these clients to better understand income replacement ratios with individual disability insurance. Of course, we have a really simple way of knowing how much can be issued by just plugging the numbers into the software program the company provides. Easy enough, right? Even with modern technology, we still need to know some basics in order to even use the software.

“Just get me the quote for 60 percent of their income,” we sometimes hear. Anyone can run illustrations, but when the company will not issue the policy for the benefit amount that what was applied for it will be harder for a producer to place a policy. First, you need to realize that each company has issue limits that may vary based on a client’s income, occupational class, health underwriting rating, and other existing disability insurance coverage. The monthly benefit a company will offer is based on income and there will be maximums the underwriter must calculate and confirm before issue. While it’s possible that the benefit amount will be 60 percent, it’s usually more by coincidence. Okay, for those more experienced, we know there are some ways on the individual side to get 60 percent plus, but let’s put that aside for now and we’ll address this later in the article. Let’s focus on that attorney or veterinarian making $300,000 per year and needs an individual disability policy. Or perhaps it’s a social worker earning $50,000 or $100,000…or maybe the surgeon or periodontist that’s making $500,000….etc.

There’s going to be a few steps to figure out how much a company may offer in coverage. If you want a rule of thumb, we tend to find that with many of the companies, at $100,000 of annual income you’ll see about 60 percent of income being offered. The income replacement charts for incomes less than $100,000 will trend higher than 60 percent. The flip side occurs for incomes over $100,000, as the percentage will trend lower for these higher incomes. In fact, as the income gets higher and higher, the percentage that a company will replace will get lower and lower.

In addition, we need to account for a few other things for the software to figure out the amount that can be offered. We need to know how much individual and group coverage (if any) that the client has as well. When calculating how much a company will allow to be issued, they need to consider how much coverage is already in force. This is because if someone has a qualifying disability, they can end up being overinsured. We call this part of the underwriting the Participation Limits. Essentially, if a client has multiple sources of disability income insurance, regardless of group or individual, we need to know this in order to run the quote properly. The question will be on the application, so better to find out ahead of time. It’s not fun to take an application just to find out it’s been declined due to having too much disability insurance. Yes, your client can be declined based on the financial underwriting.

Every company has “Issue” and “Participation” limits that need to be followed. We talk a lot about income, but income can mean different things to different people. When ordering an initial quote for individual disability insurance, we need to know the earned income before taxes. For a regular W-2 employee, this can be pretty straightforward, as you can just ask your client for their W-2 income and if they have any other coverage in force. The mistake producers will make is not being clear enough to those that have some or full ownership of their business. This is where a client may provide the gross income, which is usually not what their taxes would be based on. Let’s take a closer look at this part, as it’s a very common issue that we see weekly.

To make it easy, it is best to find out the client’s earned income for the last two years to include W-2 and/or K-1, or their Schedule C income from the business that they are actively engaged in. If your client has substantial bonuses, commissions, and/or passthrough income that have some swings, the underwriter may need to use an average income. Note, the underwriter will be looking for income that is defined as non-passive income as opposed to passive income. Passive income or unearned income is income from investments, royalties, trusts, or other types of income that are generated without your client actively at work. Most companies will ignore a certain amount or percentage of passive income, but this will vary company by company. When a company does include passive income, it’s treated similarly as another disability policy is handled and would reduce the amount of coverage a company can offer.

Why does a company spend so much time on the financial underwriting? When someone on claim ends up receiving as much after-tax income as they would have working full time, then, in theory, there may not be a financial incentive for one to want to go back to work. The purpose of the disability policy is not to create a retirement for someone, but to allow someone with a qualifying disability to pay, at a minimum, their fixed monthly expenses.

Okay, real quick. When can someone get 60 percent of their income covered regardless of their income…well…most incomes? There are a few ways that we’ve seen this occur. The first is by adding a catastrophic disability rider to a traditional individual disability quote. Think of a claim where someone needs a special van…this rider will pay in addition to the base coverage and in doing so, can bring the income replacement close to or even exceeding the 60 percent mark. The caveat is that they usually must have a severe enough disability to need assistance with two out of six ADLs or severe cognitive impairment. Each company may vary in their definition of a catastrophic disability, so be sure to check the policy definition.

The other way an individual may perhaps get more than 60 percent of their income would be in the GSI, guaranteed standard issue market that will usually layer on top of the group DI and possibly the surplus lines/Lloyd syndicate type marketplace.

While that may have seemed like a lot, the good news is that there are MGAs/wholesalers like us and many others that can walk you through the process from beginning to end. When working with experts in the field, you’ll get the hang of it in no time at all.

With the help of Victor Cohen, this is part of our ongoing series with Eugene Cohen, founder of the Eugene Cohen Insurance Agency, Inc., 2009 Honoree of the International DI Society W. Harold Petersen Lifetime Achievement Award, 2015 Honoree of NAILBA’s Douglas Mooers Award for Excellence.

From time to time, we will feature an interview with Eugene, who has dedicated over 60 years of his life to learning, teaching, and supporting brokers in the agency’s quest to help consumers protect their incomes from the tragic effects of a disability.

Disability insurance (DI) is one of those products that can change the trajectory of an individual and a family’s life and is crucial for every financial planner and insurance professional to learn about and offer to clients.

Victor: I often hear you talk about how important it is for a producer to manage a client’s expectations when applying for disability income protection insurance and other DI products. Tell me more about that please.

Eugene: As you know, many DI policies are issued exactly as they are applied, but what about the policies that are approved with other than applied? In other words, a modified offer?

After an application is underwritten by the individual disability company, it’s possible that the policy may be issued with modifications. These may include ratings, reductions in benefit period or exclusions for certain medical conditions.

Victor: And when you say, “modified offer,” you’re referring to there being perhaps certain prior pre-existing health conditions that won’t be covered, right?

Eugene: Exactly. So…to manage your client’s expectations you have to ask the client some questions before they apply for DI. This will help give the client an idea how they may be treated in underwriting.

You have to try to take some time to know your client…to know their insurability risk. Speak to your client about the types of medical issues they may have now—or have had in the past—that could impact their insurability.

Victor: What are some examples of the kind of health issues you’re referring to?

Eugene: Your client may feel they’re in perfect health with no particular problems. After questioning them, they may say they use a CPAP machine because of their sleep apnea. Well, that may cause a rating of additional premium on an offer. The producer needs to let the client know this upfront so the client is not surprised if the policy is issued with a rating related to the sleep apnea.

Or, while talking to your client, you may discover they take medication for Type 2 diabetes. The client says they feel fine, they feel perfect, and it’s possible that the diabetes may actually be very well controlled. But the DI underwriter may still be required to add a surcharge or rating to the policy of 25 or 50 percent. In addition, depending on the company and the case, the underwriter may be required to cut the benefit period down to a five-year benefit period rather than issuing the policy with longer coverage. Of course, if the diabetes is not under control, the underwriter may be required to decline the application for insurance.

We are not the underwriters but we have experience knowing on many occasions how the applicant most likely will be treated.

When questioning an applicant, be sure to inquire about any muscular/skeletal issues. Many producers forget to ask about this important part of the pre-screen. When asked, maybe they say, “I’ve had pain in my right hip.” The client thinks nothing of it. Well, that hip could perhaps be an exclusion. The client needs to know this before the application is submitted.

Health issues with the back may lead to some type of spine exclusion. If your client says, “I have a herniated disc in the cervical area of my back,” the client has to know that the company may put an exclusion rider on perhaps that portion of the back or maybe the entire back.

Victor: I see a lot of policies issued with an exclusion on mental disorders.

Eugene: Yes, that would be very common. A client’s mental health history can often lead to a policy being issued with an exclusion for mental disorders. Let’s suppose a client is being treated for depression, anxiety or other types of mental health issues. They’re going to counseling and/or taking medication(s)… The underwriter may be forced to have the policy issued with an exclusion for disabilities caused by mental disorders. The specific language of the exclusion may vary from company to company, so it’s important to read the exclusion.

Depending on the severity of the mental health issues, there could be a rating and/or a shortening of the benefit period and other modifications.

Imagine a producer showing a client a DI illustration, telling them about how the policy offers full coverage for mental disorders to age 67 and then the client’s policy gets issued with mental disorders excluded and a benefit period of 5 years.

Victor: You have a disappointed client.

Eugene: Possibly a disappointed client. Managing the client’s expectations means that it’s important to prescreen the client before submitting an application. It means finding out about the client’s mental health history before the app is written and letting the client know if there is a likelihood they could have an offer with a mental disorder exclusion.

Managing a client’s expectations means knowing a client’s height and weight before submitting a DI application. You may have a client whose height and weight could be rated 25, 50, 75, 100 percent and/or cause a reduction in the benefit period. This is why it’s important when requesting your disability illustrations that you provide the height and weight of the client.

Victor: What does a typical exclusion look like in a DI policy?

Eugene: A typical exclusion rider will state that the benefits are not payable for a disability resulting from whatever the named condition is. For Example, Crohn’s Disease…or the lumbosacral area of the spine…or injury or disease or disorder of any part of the body.

The intent of the rider is to exclude or restrict coverage for a known medical condition or a condition that predisposes you to a potential disability. The specific language of the exclusion may vary from company to company, so it’s important to read the exclusion.

Victor: Now let’s shift gears a little. Let’s say a DI policy has been issued with an exclusion rider or riders. Why should the client take the policy?

Eugene: Lets’ say the client gets an offer with an exclusion rider on the cervical area of their spine. Think of all the other areas of the body that are still covered. Think of all the different diseases a person could face.

Victor: So they may still be covered for, say, cancer, heart disease, Parkinson’s disease, MS, on and on.

Eugene: Right. Again, the specific language of the exclusion may vary from company to company, so it’s important for you and the client to read and understand the exclusion(s).

You are correct in that the medical dictionary is filled with pages of sicknesses that can disable that person. It is extremely important for that client to take care of their financial needs and obligations if they were to become disabled from something else.

You want to point out to your client that even a modified offer is very valuable. If the individual has a DI policy with a monthly benefit of $10,000 with a benefit period of five years…if they were to have a qualified claim that benefit could be worth more than a half a million dollars for that five-year period.

Now if an individual does not take the policy because of one or two exclusion riders or because of a rating, you know one thing. The conditions may stay the same or get worse. And if they get worse, the individual may not be able to buy a disability policy later.

Victor: Let’s take a worst-case scenario. The client is declined. Then what? What DI options, if any, does the client have at that point?

Eugene: If your client is declined because of some kind of medical condition(s), there are DI companies that may still consider that individual for DI coverage—companies that underwrite impaired risk cases.

The company may offer a policy with an exclusion or possibly a rating. Sometimes these policies have limited renewal durations, such as allowing the policy to be active for a few years at a time, in which, at the end of the allowed period, the company may or may not allow the policy to renew.

Some of these impaired risk DI policies are issued with a graded benefit. Depending on the company and policy design, if the qualifying claim for sickness occurs during the first couple of years, the DI company would pay a reduced amount based on a preset schedule. After a certain period of time, the policy would pay the full monthly benefit. Please review the illustrations and contracts for details, as these policies are different from the ones that you may have sold in the past.

Victor: Our time together always flies by so fast. Thank you so much for your invaluable insights and passion. Unfortunately, we have to wrap up our conversation today. Is there anything you would like to add?

Eugene: By managing expectations you’re letting your DI client know in advance what to likely expect. If you are a producer unfamiliar with DI underwriting and the way certain medical conditions are often treated, it’s important to work with an experienced MGA/wholesaler that knows this market.

Individual disability income protection is a very valuable policy. Naturally, it is best to buy a DI policy when you don’t have any medical problems. But if you do have a policy with an exclusion(s), think about all of the other conditions, both medically and via accidents, that can be covered on a qualified claim.