Cash Value Executive Disability Policy

Below is a list of some of the most common questions we receive. If you have any questions that are not addressed in this list, please email us at disability@morganwhite.com. We welcome any questions and look forward to explaining any sections of our policy that may not be clear. However, always refer to the policy wording, which can be downloaded from this web site for the final authority.

This list is divided into four categories. Click each category to jump directly to those questions, or simply scroll down to browse them all. General | Eligibility | Claims | About Cash Value

General

1. Do I really need a disability policy?
The fact is, there are far more disablements during a year than deaths from any cause. Studies have proven that the average household does not have any type of protection for disablement, even though any member of a family is likely to become disabled.

2. Do I really need disability insurance for my wife?
While you are working, who would look after your children and your wife if she became disabled? The Executive Disability Plan will provide monthly cash payments for three years, followed by a large lump sum which would help towards the cost of hiring child-care and specialized care for your wife.

3. Do I really need disability insurance for my children?
Kids will be kids and we all know how active and accident-prone they can be. If they should become disabled and needed specialized assistance, the Executive Disability Plan will provide you with the cash to give them the best possible care they deserve.

4. What else would the Plan cover for me?
If you are disabled and unable to work, the Executive Disability Plan will help to pay all the financial commitments you may have –house payments, loan repayments, household living expenses, education costs, etc.

5. Does the Executive Disability Plan cost a great deal?
No. It costs relatively little when compared to other forms of insurance. There are several payment options for you to choose from which will suit you. Do not forget when you sign up you pay the same rate up until you reach age 60.

6. If I apply, do I have to take a physical examination?
No, physical examination is not required and there are no occupation restrictions.

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Eligibility

1. I live in the United States, can I buy the Executive Disability Policy?
No. The policy is not available to permanent residents of the United States.

2. What if I am an citizen of the United States and live permanently outside of the U.S.?
Then you are eligible to purchase the Executive Disability or the Cash Value Disability Plan.

3. What happens if I move permanently back to the U.S.?
You must surrender the policy if you live 180 consecutive days in the United States or Canada.

4. Does the oldest spouse have to be the Main Insured?
No.

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Claims

1. What happens if I become disabled for 18 months and then get well, then a year later I become disabled again?
If you become disabled from a covered event for more than 90 days, the policy would then pay the selected monthly benefit or 15 months after the 90-day elimination period. Then if you get well and again become disabled one year later for more than 90 days, the policy would begin to pay monthly benefits again after the 90-day elimination period. If you remained disabled for 36 consecutive months after the elimination period, the policy would then pay a lump sum benefit of 100 times the monthly benefit.

2. What is the difference between the "Waiting Period" and the "Elimination Period" in the Policy?
The Waiting Period only exists in the first 90 days after the policy is issued. This policy provision says that any illness that manifest itself during the first 90 days after the policy is issued and later causes a disablement, will not be covered for the life of the policy. (See Exclusion number 11 in the policy wording) The Elimination Period is the 90 days period of time in the policy from the time a disability is declared until the monthly benefit begins to pay.

3. What happens if the Main Insured dies and the insured spouse wants to continue the policy?
If an insured accidentally losses the use of one hand, one foot, one arm, one leg, or the sight in both eyes, the benefit will pay the monthly Loss of Use Benefit for 36 months and then pay the Loss of Use Lump Sum Benefit.

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About Cash Value

1. Can I buy the policy without the Cash Value Rider?
Yes. The Policy can be purchased without this benefit with a policy underwritten by Lloyd’s, London. See the Premium Rate Tables.

2. If my spouse is on the policy and I get to 65 before she does, can I cash in the policy and keep her insured?
No. In order to cash in the policy for the cash value amount, the policy must be surrendered. You may have your coverage under the policy terminated and the premium paid would then be for only your wife. When she gets to 65, you could then terminate the policy and get a full refund of all premiums paid (less claims paid).

3. If the policy contains the cash value rider and the main insured dies, can the policy beneficiary receive 50% of the premiums paid and the spouse and dependents continue coverage under the policy?
No. In order to receive the cash value of the policy, the policy must be surrendered to the company.

4. If the policy contains the cash value rider and the main insured dies, can the spouse continue the policy?
Yes, the policy premium would be adjusted for the coverage of the spouse only and the policy would continue. If the policy was at least 10 years old and the spouse dies, the beneficiaries would receive 50% of the premiums paid. If the policy was in force for over 15 years and the spouse attained the age of 65, the policy could be surrendered for 100% of the premiums paid less the amount of any claims paid.

5. If the policy contains the cash value rider and the main insured dies after the policy has been in force for 15 years, but prior to his 65th birthday, how much will his beneficiaries receive?
His beneficiaries will receive 50% of the premiums paid prior to the death of the main insured less the amount of any claims paid. In order to receive 100% of the premiums, the policy must be in force for at least 15 years and the main insured must attain the age of 65.

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Note: This is a partial summary of the coverage, benefits, conditions and exclusions.
For a detailed explanation, please refer to the policy document and ask your agent.