Ameritas DINamic Foundation Residual Riders

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What is the difference between the Enhanced Residual rider and Basic Residual rider, as offered by Ameritas?

2) We can reissue with the basic residual just want to make sure you know that the Basic Residual kicks in with a 15% loss of income (same as Enhanced) but removes the Recovery feature and caps the benefit at 50% of the base benefit…"

The key with number 2 is that the Recovery benefit would be removed. Recovery benefits are paid to the insured upon returning to work full time after a period of residual or total disability. It pays when there is no longer a disability at all and the person is working full time. But as a result of being out of work for 3 years, 5 years, etc they are now making less money than they were before.

Think of a partner in a medical practice. Before disability they were making 600k. They get sick and are out for 5 years. During that time the practice has been transitioned to new ownership, a new partner has been brought in, a larger entity purchased the practice, etc, etc. Upon returning to being healthy maybe that specific job or place of employment is no longer there for the taking. Maybe the physician has fallen off from a educational standpoint because new procedures are being done. Maybe they need to start back at a lower income of 250k.

Recovery would say that because income is now only 250k that the insured gets paid. It is not their fault that because they WERE disabled that income will forever be depressed from where it would have been otherwise. In this case there is a loss of income if 350k per year (58% loss of income). The insured would receive 58% of the total benefit ($8750) and they would continue to receive that monthly benefit until income returns to $510,000 (85% of pre disability income) even with them earning 250k and even with them not actually being sick or hurt.

So Recovery is a big thing.

The other thing is the 50% cap on residual monthly payouts. With the Enhanced rider if you have a 70% loss of income you get 70% of the benefit. With the Basic residual the monthly benefit is capped at 50%.

Both are good options. One costs less than the other naturally. Just wanted to clarify this and bring it to your attention.
Let me know what you would like to do in terms of reissue or not. I also requested a copy of the updated issue limit tables to see on paper that the limit is 15k. I know it to be that but just want to make sure that the software bug is truly a bug and not just my contact not knowing what he is talking about. I would be shocked if he did not know the limit since he is amazingly helpful with all things Ameritas.

Glad that we are having a chance to review this important distinction between the Enhanced and Basic Residual riders.

Here is a pdf that talks about 15 reasons to purchase disability insurance from Ameritas. We are of course Ameritas brokers. We did not create this document and understand that only some people should buy Ameritas over the other options. It can make for a great policy and can win vs all other options in many cases. We will post more consumer documents about all disability insurance policies here.


Attachment:
15-reasons-to-protect-your-income-with-Ameritas.pdf

Here is the specimen contract for the Ameritas DINamic Foundation policy. Keep in mind that it does vary slightly in some states so let us know if you want to review this.

The definitions of Enhanced Residual and Basic Residual can be found on the following pages:

Enhanced Residual - pages 15-18
Basic Residual - pages 19-22


Attachment:
Ameritas-DINamic-Foundation-Specimen-Policy.pdf

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