CATASTROPHIC DISABILITY BENEFIT RIDERS

Catastrophic Disability Benefit Riders

By : Gary Fegan

(301) 917-2310
gfegan@disabilityquotes.com

Provide Extra Funds During Severe Illness or Injury Funds for Added Flexibility

A devastating illness or accident can leave you needing extra assistance. The Catastrophic Disability Benefit (CAT) provides extra funds so you’ll have the flexibility to do things such as hire help and pay for items not covered by your health insurance. The CAT option can provide up to 100% income replacement when combined with the base policy benefit and other disability coverage. 

Two catastrophic disability riders are offered in Provider Choice, the disability insurance policy offered through Guardian Life Insurance Company of America's wholly-owned stock subsidiary, Berkshire Life Insurance Company of America. The riders would pay a benefit in addition to the monthly indemnity amount in the event of one of the following:

If the Enhanced Catastrophic Disability Benefit Rider is selected:professionals reviewing documents

  • A cognitive impairment that requires substantial supervision
     
  • The loss of two or more Activities of Daily Living (ADL)- bathing, continence, dressing, eating/feeding, toileting and transferring
     
  • A total, complete and irrevocable loss of sight in both eyes, hearing in both ears, speech, or the entire use of both hands, both feet or one hand and one foot.

If the Basic Catastrophic Disability Benefit Rider is selected:

  • A cognitive impairment that requires substantial supervision
     
  • A total, complete and irrevocable loss of sight in both eyes, hearing in both ears, speech, or the entire use of both hands, both feet or one hand and one foot.

Since catastrophic disabilities are often permanent, or at least long-term, Guardian specifically designed the Enhanced Catastrophic Disability Benefit Rider to include an automatic annual compound 3% increase adjustment to help benefits grow faster and provide greater income protection. When this is combined with the base policy benefit and other disability coverage, the Enhanced Catastrophic Disability Benefit Rider may provide up to 100% income replacement. This is a great way to add additional benefits to your individual disability coverage at a rather low additional premium.

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Choose from two strong options:

Enhanced Catastrophic Disability Benefit Rider (Enhanced CAT)– Provides extra funds in the event of a severe disability plus an automatic 3% cost of living adjustment. 

  • Automatic 3% increase results in extra:
  • $87,000 after 10 years 
  • $412,000 after 20 years 

Basic Catastrophic Disability Benefit Rider (Basic CAT) – Provides extra funds in the event of a severe disability.

Please see a sample $5,000 benefit to the right (not part of the above example):

Basic CAT chartExclusive Stronger Protection Many disability insurance carriers offer a catastrophic benefit. However, we’re the only one with an Enhanced CAT rider that includes an automatic 3% compound cost-of-living increase. 

Many people buy long term care insurance to cover expenses related to long term illnesses. The Enhanced Catastrophic Disability Benefit Rider acts similarly to long term care coverage. The extra benefit paid through the rider would help pay the extra costs associated with a long-term illness. However, you do not need to use the benefits for long term illness only- you can use the benefit for anything you wish. 

Either of the Catastrophic riders would be a very good optional disability insurance rider to add to your policy.

 

 

 

 

Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS), 9200 Corporate Blvd, Suite 390, Rockville, Maryland 20850. Securities products/services and advisory services are offered through PAS, a registered broker-dealer and investment advisor, (240) 683-9700. James Fegan, Financial Representative. The Guardian Life Insurance Company of America (Guardian), New York, NY. PAS is an indirect, wholly-owned subsidiary of Guardian. Financial Balance Group is not an affiliate or subsidiary of PAS or Guardian. PAS is a member of FINRA, SIPC. 

This material contains the current opinions of the author but not necessarily those of Guardian or its subsidiaries and such opinions are subject to change without notice.

Individual disability insurance policy Forms 18ID, 18UD and 18GI underwritten and issued by Berkshire Life Insurance Company of America, Pittsfield, MA, a wholly-owned stock subsidiary of The Guardian Life Insurance Company of America, New York, NY. Product provisions and availability may vary by state. In New York: These policies provide disability insurance only. They do not provide basic hospital, basic medical, or major medical insurance as defined by the New York State Insurance Department. For policy form 18ID, the expected benefit ratio is 50%. For policy forms 18UD, 18GI, 18UD-F, an 18GI-F, the expected benefit ratio is 60%. The expected benefit ratio is the portion of future premiums that the company expects to return as benefits when averaged over all people with these policy forms.

2019-90488 Exp: 12/1/21