Metlife exiting individual disability insurance market...

[JoshuaThompsonCFPEA]

Metlife announced that it is closing up its disability insurance business starting in September. They had a phenomenal product for male physicians and now they are leaving.

Are you planning to keep your Metlife policies or purchase a Metlife policy before they stop issuing new policies in September?

[The White Coat Investor]

I have MetLife Life Insurance, but not DI. Always bummed to see a company exit the marketplace as it cannot possibly have a good effect on prices.

[DK Unger]

It is a shame because MetLife is very competitive for "6M" physicians which represents many non-invasive/non-interventional specialties. They are also competitive for general surgeons.

This serves as a reminder that the individual disability insurance marketplace is always in a state of flux.

[jfoxcpacfp]

 

The White Coat Investor wrote:

I have MetLife Life Insurance, but not DI. Always bummed to see a company exit the marketplace as it cannot possibly have a good effect on prices.

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Then you must have been super-bummed to hear about UnitedHealth yesterday.

[Steve]

Will this have any impact on existing policies?  I sure hope not.

[LBKCLU]

No. Inforce policies will not be impacted at all. You will still also be able to exercise the AIB and GIO Riders. Until August 31, it is business as usual and I will still be recommending MetLife's disability insurance policy when it is appropriate.

[LBKCLU]

Rex, that is definitely true. However, the contractual provisions of the policy (and GIO exercises) remain the same, which is most important. Therefore, a "good deal" today remains that way. MetLife also amends the policy to reflect the GIO exercise and does not issue a separate policy. Therefore, the rate book, contractual provisions and any premium discounts remain.

It will be interesting to see which carriers respond to this but, I can tell you, Standard, MassMutual and Berkshire all have new policies coming out within the next 6-12 months in approved states.

[Dilaudidopenia]

EM resident in last year of training here.  Currently hold Ameritas policy but very likely switching over to Met Life policy (already approved) since cheaper, etc.  Just wanted to check in here that making the switch is safe (with Met Life exiting the market and all) before I give the final go ahead to the agent.

 

Thanks.

[Scott at MD Financial Services]

Service is already suffering a touch, underwriting is getting elongated, even though the terms can not be altered one never knows how the future purchase options are going to be priced or the language of that future increase amount will be worded.  I do not believe that the future increase terms are guaranteed as they are with a few other carriers like Ameritas, you might want to think that over before you make the switch.

[LBKCLU]

While I agree that the service is slowing and underwriting is getting backed up prior to their exiting the marketplace, you have no need to worry about pricing or contractual provisions when the GIO Rider is exercise as no new policy is issued. The premium rates are based upon the rate book you locked into just using your then current age at the time of the exercise, including any applicable discounts, for the additional coverage.

Their policy specifically states that "The premium for each increase will be at the rate then in effect for Your policy based on Your age on the applicable Option Date and for Your class on the Effective Date of this rider".

 

[Roucher]

Hi,

My name is Eugene. I have recently finished an anesthesiology fellowship, and am starting my new job this coming Monday. I have read many of the blog posts on WCI, read the book, and listened to just about all of the podcasts. I am in the beginning stages of acquiring financial competency. I have never posted anything here before, but I have a question that I hope you all can help me understand better.

I currently have a MetLife Disability Insurance plan that I acquired during residency. I pay $135 per month for a a plan that is own occupation (as well as specific to the duties of my own occupation. So, if I cannot intubate, it will begin paying out. Partial benefit for partial disability), currently set to pay $4,250 at 180 days elimination period, and has the following riders: catastrophic ($4,250/month), COLA 0-10% based on consumer price index, Guaranteed insurability, residual, presumptive. They mentioned they cannot raise my premium if I make my payments on time.

I am now considering increasing the amount of disability insurance I have, but have several questions regarding how to do so. **I fell off my bicycle in November of 2017 and had to have my clavicle surgically repaired.**

A financial advisor I have been speaking with recently recommended to look into other disability insurance companies, as she feels the service MetLife will offer moving forward may be questionable. She gave me several quotes, the best of which was from Principal: Benefit amount 11,460, 90 day elimination period, to age 67 (asked her to do 65 to get a cheaper rate), own occupation, residual benefit, 8k catastrophic, COLA 3%, BU and FBI, mental limitation of 24 months. The quote is $523 per month.

Now, I am wondering how to proceed.

1. Should I combine both insurances? Keep my MetLife because I had it PRIOR to my injury and surgery, and then add on the other insurance

2. Would it be more financially prudent to relinquish the MetLife plan, and go with the Principal plan which will likely exclude my shoulder/clavicle injury (intubating arm, although it has healed well and feels good. It does get sore with exercise)

3. Should I just stick with MetLife and raise the benefit amount, and drop the elimination period to 90 days if I can? (assuming have one plan at X benefit would cost less than having two plans for a combined X benefit).

Thank you all in advance.

Eugene

[jfoxcpacfp]

Hi, Eugene,

Welcome to the forum! Would you mind copying and pasting this post to start a new thread? I think you'll get a lot  more interest with a different thread title. If you need help, please message me.

[DK Unger]

Roucher wrote:

Hi,

My name is Eugene. I have recently finished an anesthesiology fellowship, and am starting my new job this coming Monday. I have read many of the blog posts on WCI, read the book, and listened to just about all of the podcasts. I am in the beginning stages of acquiring financial competency. I have never posted anything here before, but I have a question that I hope you all can help me understand better.

I currently have a MetLife Disability Insurance plan that I acquired during residency. I pay $135 per month for a a plan that is own occupation (as well as specific to the duties of my own occupation. So, if I cannot intubate, it will begin paying out. Partial benefit for partial disability), currently set to pay $4,250 at 180 days elimination period, and has the following riders: catastrophic ($4,250/month), COLA 0-10% based on consumer price index, Guaranteed insurability, residual, presumptive. They mentioned they cannot raise my premium if I make my payments on time.

I am now considering increasing the amount of disability insurance I have, but have several questions regarding how to do so. **I fell off my bicycle in November of 2017 and had to have my clavicle surgically repaired.**

A financial advisor I have been speaking with recently recommended to look into other disability insurance companies, as she feels the service MetLife will offer moving forward may be questionable. She gave me several quotes, the best of which was from Principal: Benefit amount 11,460, 90 day elimination period, to age 67 (asked her to do 65 to get a cheaper rate), own occupation, residual benefit, 8k catastrophic, COLA 3%, BU and FBI, mental limitation of 24 months. The quote is $523 per month.

Now, I am wondering how to proceed.

1. Should I combine both insurances? Keep my MetLife because I had it PRIOR to my injury and surgery, and then add on the other insurance

2. Would it be more financially prudent to relinquish the MetLife plan, and go with the Principal plan which will likely exclude my shoulder/clavicle injury (intubating arm, although it has healed well and feels good. It does get sore with exercise)

3. Should I just stick with MetLife and raise the benefit amount, and drop the elimination period to 90 days if I can? (assuming have one plan at X benefit would cost less than having two plans for a combined X benefit).

Thank you all in advance.

Eugene

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1. The main advantage of having two policies is that you will be able to reach the maximum monthly benefit available from all sources (assuming you qualify based on each company's issue and participation tables). Whether or not this is a recommended strategy depends on your specialty and future income potential. Generally incomes above $450K/year benefit from this.

2. Typically it does not make sense to terminate earlier established policies if they were prudently set up and especially if recent changes in health mean a new policy will have an exclusion rider. You can more easily compare the premiums between MetLife and Principal by requesting a quote from MetLife using the Guaranteed Insurability Option Rider (GIO) for the same monthly benefit amount you are considering from Principal.

3. The easiest thing to do would be to just increase your MetLife coverage since that would not require medical underwriting. You can always explore adding a second policy later if your income warrants the additional policy.

[Scott at MD Financial Services]

Stick with Met, increase the policy that you have since it won't have any restrictions that the new policy with Principal would probably have due to your developed issues.  You should check around, you don't need to use that agent that originally sold you that policy because if she is now suggesting you move to a different carrier with exclusions she obviously does not have your best interest at heart....

[ShockDoc]

I’m in a similar situation (MetLife DI from last year of residency, new attending). I talked to my insurance guy. He suggested I don’t buy another product, but increase my current policy. He said that the policies MetLife was putting out in the mid 2010s were some of the best he’s ever seen and I’ll likely never be able to get something better. And this is coming from a guy who gets paid if I buy more insurance products.

I have a good employer provided DI policy that would be adequate alone, but I’m keeping the MetLife policy in force as is in case I leave my job.