Guardian/Berkshire has announced that they plan to modify their Future Increase Option rider.  The change will take place when it is approved by the California Department of Insurance.  The change became effective on February 15, 2004 in all states except California, Florida, South Carolina and Utah.  

The modification is being made because company claims experience has been significantly out of line with the pricing requirements of the rider.  The company's options are to raise rates or change the wording of their Future Increase Option rider to reflect their claims experience.

If a physician purchases a Guardian/Berkshire disability policy at age 35 that pays a benefit of $ 3,500 per month from the onset of disability to age 65 and the physician's policy includes a $ 6,500 per month Future Increase Option rider and the physician is totally disabled at age 40, the physician would be paid a benefit of $ 10,000 per month from age 40 to age 65 if the physician's earnings allowed the physician to exercise all of his/her option while the physician is totally disabled.  This amounts to a pay-out of $ 3,000,000 over 25 years.

If a physician is totally disabled at age 40 and continues to be disabled to age 65, the physician would be paid $ 3,500 per month from age 40 to age 65 or a total of $ 1,050,000.  However, the physician would not be paid $ 6,500 per month while disabled from the same disability.  By purchasing disability insurance after the change, a physician would lose $ 1,950,000 in benefits.

If you want to guarantee the right to exercise your future increase option while you are disabled and collect benefits on the base policy and your option, you should apply for your disability insurance before the Guardian/Berkshire change is approved by the California Department of Insurance or your respected states department of insurance. 

The Guardian policy currently pay benefits for stress and mental nervous disorders for your full benefit period, whether it be to age 65 or lifetime.  After the deadline, you will only receive two year of benefits for stress and/or mental nervous disorders.  Stress and mental nervous disorders account for 25% of all claims.

Medical Management Company, established in 1960, is a leading provider of disability insurance to health care professionals throughout Arizona, California and Washington and with over 1,300 health care professional clients throughout the United States.  

Contact one of our representatives by calling (800) 501-8078. 

Call today to lock in your current and future coverage.