Insurance Carrier: Ameritas Insurance Company
Ameritas Insurance Company is a well-established insurance and financial services company that was founded in 1887 and is based in Lincoln, Nebraska.
The company has been accredited by the Better Business Bureau since 1955 and currently holds an A+ rating from the BBB.
In addition, Ameritas Insurance Company has a strong financial strength rating, with an A (Excellent) rating from A.M. Best, a leading insurance rating agency.
The company offers a range of insurance and financial products, including life insurance, annuities, disability insurance, and investment services.
William “Bill” Lester currently serves as the CEO of Ameritas Insurance Company, having taken over the role in 2017, bringing with him years of leadership experience in the financial services industry.
What are Ameritas’s disability insurance policies?
Ameritas offers two types of disability income insurance policies: DInamic Cornerstone Income Protection and DInamic Foundation. The former is a non-cancelable policy that pays a monthly benefit for a covered total disability resulting from an injury or sickness.
The premium paying and coverage periods run through the policy anniversary following the insured’s 65th birthday (67th birthday for a to age 67 benefit period). Premiums are guaranteed to age 65 or age 67, and benefits payable are for total disability, as defined in the policy.
The latter, DInamic Foundation, is a guaranteed renewable policy that offers different definitions of total disability, benefit and elimination periods, allowing for the design of a policy that fits the individual needs of customers. T
he premium paying and coverage periods run through the policy anniversary following the insured’s 65th (67th birthday for a to age 67 benefit period), with premiums subject to change on a class basis with state approval. Benefits payable are for periods of total or residual disability, as defined in the policy.
Both policies are designed to provide valuable financial protection and peace of mind to individuals in case of an unexpected injury or illness that prevents them from earning an income.
The non-cancelable policy provides a more comprehensive safety net with a guarantee of premiums to age 65 or age 67, while the guaranteed renewable policy offers more flexibility in terms of coverage options and the ability to change premiums.
It is important to note that both policies are conditionally renewable for life beyond the coverage period, provided the insured is not receiving benefits under the policy or any attached rider, the policy was in force the prior year with no premium in default, the insured is actively at work at least 30 hours each week at his/her usual place of employment, proof of current income is provided, and the insured pays the premium in effect for his/her age at the time of renewal.
Ameritas Life Insurance Corp. offers valuable protection and benefits that can help insured individuals and their families maintain their financial stability in the event of an unexpected injury or illness. It is recommended that clients carefully review and compare the features of both policies to choose the one that best suits their individual needs and budget.
Pros of Ameritas Disability Insurance
One of the main pros of having disability insurance through Ameritas is the availability of a true own occupation policy, which allows you to receive benefits if you’re unable to perform the duties of your specific occupation, even if you’re able to work in another capacity. This type of policy provides a high level of protection and peace of mind for professionals who rely on their specialized skills and expertise.
Additionally, Ameritas offers coverage for catastrophic disabilities, which can help provide financial support in the event of a severe and life-changing injury or illness. Most importantly when searching for the right long-term disability insurance coverage it is important to know the definition of disability, occupation definition and any other optional riders available.
Reimbursement for student loan payments during disability: The Student Loan Repayment (SLR) rider is designed to help policyholders keep up with their student loan payments if they become disabled. This can be a valuable benefit for those with student loan debt.
Lump sum savings benefit: The Lump Sum Savings (LSS) rider can help replace lost retirement contributions while the policyholder is disabled and not contributing to a retirement savings plan. This can provide some financial security during a challenging time.
Coverage for certain disabilities: The policy provides coverage for disability resulting from being a transplant donor or from cosmetic surgery that occurs more than six months after the issue date. This may provide additional peace of mind for those considering such procedures.
Occupational rehabilitation benefits: Disability benefits may be payable if the policyholder participates in an approved program of occupational rehabilitation, and the insurance company may participate in the cost. This can help policyholders recover and return to work more quickly.
Premium payments are waived during disability: Premium payments are waived upon approval of the policyholder’s claim, after they have been continuously disabled for at least 90 days. This can provide some financial relief during a difficult time.
Non-cancelable and guaranteed renewable policy: The policy is noncancelable and guaranteed renewable, meaning the insurance company cannot cancel the policy except for non-payment of premium, and cannot change the terms of the policy except to the benefit of the policyholder or per their request. This can provide some peace of mind that the policy will remain in force.
Coverage for pre-existing conditions: As long as pre-existing conditions have been fully disclosed and are not specifically excluded, they will be covered. This can be an important benefit for those with pre-existing medical conditions.
Partial Disability Benefit: in your disability insurance policy can provide financial support for an insured who is only partially disabled and unable to work full-time due to a sickness or injury. The benefit can help cover the loss of income and provide some relief during a difficult time, and is included in the Guaranteed Renewable base policy without the need for additional riders.
The Future Increase Option (FIO): This rider from Ameritas allows an insured to increase the base monthly benefit on a policy without providing evidence of physical insurability up to three times the base monthly benefit amount. This rider is available to occupation classes 6A-2A and 6M-2M, 4P, and 4D, and for issue ages 18-50. The FIO rider is a valuable benefit as it allows policyholders an automatic increase of their coverage without the need for further medical underwriting, providing flexibility in the face of changing financial circumstances or life events.
Waiver of Premium: Which is included in your disability policy ensures that your insurance coverage remains in force even if you become totally disabled and unable to work, without the need to pay premiums. This can provide financial security and peace of mind during a difficult time, and also ensures that the policyholder does not lose any value that they have already invested in the policy due to disability. Additionally, the provision allows for a refund of any premiums paid after the date of disability, which can help offset the financial impact of being unable to work.
Presumptive Total Disability: Provides coverage for specific injuries or disabilities that can result in total disability. This means that if the insured suffers from a loss of sight, hearing, speech, or the use of limbs, the policy will presume them to be totally disabled, even if they are still able to work. Additionally, the elimination period will be waived, which means that the insured will receive benefits from the policy immediately without waiting for the elimination period to pass.
Good Health Benefit: Allows for a reduction in the elimination period by two days for every consecutive policy year without receiving monthly disability benefits, with a minimum of 30 days. However, once monthly disability benefits are received, the benefit is reset to zero and will accumulate again for every consecutive year without receiving benefits.
Cost of Living Adjustment (COLA): Both the “COLA6C” and “COLA3C” riders provide an annual increase in the monthly benefit payable, based on the consumer price index for all urban customers (CPI-U), beginning 12 months after the date of disability. However, the key difference between them is the maximum adjustment factor for “COLA6C” is 6% compounded annually with a minimum of 2%, while for “COLA3C”, the maximum adjustment factor is 3% compounded annually with no minimum. This has the effect of creating a “catch-up” provision for years of low to high inflation. The SIS rider, on the other hand, provides an additional benefit each month if the insured is receiving limited or no Social Insurance Benefits due to total disability.
Cons of Ameritas Disability Insurance
Here are a few potential cons or drawbacks to consider when it comes to having a disability insurance plan:
Exclusions and limitations: Disability insurance policies often have exclusions and limitations that can impact coverage. For example, certain medical conditions or disabilities may not be covered, or there may be restrictions on the amount of coverage you can receive.
Application process: The application process for disability insurance can be lengthy and require extensive medical exams and documentation. Some people may find this process to be invasive or difficult to navigate.
Waiting periods: Disability insurance policies often have waiting periods before benefits kick in. This means that if you become disabled, you may have to wait several weeks or even months before you start receiving benefits..
It’s important to carefully review the terms and conditions of any disability insurance products you are considering, and to weigh the costs and benefits to determine if it’s the right choice for your individual needs and circumstances. Please note availability and provisions vary by policy, state (New York) and occupational class (Medical or Legal).
Complaints About Ameritas Disability Insurance
According to the National Association of Insurance Commissioners (NAIC), Ameritas has one of the lowest complaint ratios in the industry, indicating a high level of customer satisfaction. In fact, Ameritas consistently ranks among the top disability insurance providers for customer service and claims handling.
There have been some complaints about Ameritas Disability Insurance, but many of them seem to be related to customer service issues rather than problems with the actual product. Some customers have reported difficulties with filing claims, slow response times, and unhelpful representatives.
However, it is important to note that complaints can still arise in individual cases, and it is always recommended to thoroughly review the terms and conditions of a policy before making a purchase to ensure that it meets your needs and expectations.
It’s important to note that while customer service issues can be frustrating, they don’t necessarily reflect the quality of the product itself. Ameritas Disability Insurance has received positive reviews for its coverage options and flexibility, as well as for its True Own Occupation definition of disability. Ultimately, it’s up to each individual to weigh the potential benefits and drawbacks of a disability insurance policy and decide whether it’s the right choice for their needs.
Third-Party Ratings of Ameritas Disability Insurance
Ameritas has received high ratings from several independent rating agencies, including:
A.M. Best: Ameritas has an A (Excellent) rating from A.M. Best, indicating a strong financial position and ability to meet its financial obligations.
Standard & Poor’s: Ameritas has an A+ (Strong) rating from Standard & Poor’s, indicating a very strong capacity to meet financial obligations.
Moody’s: Ameritas has an A1 (Good) rating from Moody’s, indicating a low credit risk and strong financial stability.
Fitch: Ameritas has an A+ (Strong) rating from Fitch, indicating a low default risk and strong financial flexibility.
These high ratings demonstrate that Ameritas is a financially stable and trustworthy company that is well-equipped to meet its obligations to policyholders.
Wealthcare’s Rating of Ameritas Disability Insurance
Ameritas Life Insurance Company is a great company to purchase life insurance or disability insurance from for several reasons. Firstly, they have been in business for over 100 years, which is a testament to their stability and longevity in the industry. They have an A (Excellent) rating from A.M. Best, which indicates their financial strength and ability to pay claims.
Secondly, they offer a wide range of life and disability insurance products that can be customized to meet individual needs and budgets. They offer True Own Occupation disability coverage, which means that they will pay benefits if you are unable to perform the duties of your specific occupation, even if you are able to work in another capacity.
Thirdly, Ameritas has a strong reputation for customer service and satisfaction. They have received fewer complaints than their competitors to the National Association of Insurance Commissioners (NAIC), indicating a high level of customer satisfaction.
Overall, Ameritas Life Insurance Company is a great choice for those seeking life, disability or health insurance, as they offer high-quality products, excellent customer service, and a long-standing reputation for financial stability.
Review criteria
We used the following features in this review:
- Ratings from other institutions. Other third-party institutions have rated Ameritas very highly. This includes AM, Fitch, and S & P. Only a few insurance companies have such a reputation.
- Excellent products. Besides disability insurance, Ameritas also provides life insurance and retirement plans for individuals, helping them have a more secure financial future.
- Complaints. We checked NAIC for complaints about Ameritas, and it checked all the right boxes. Very few complaints have been reported.
- Reputation. The negligible complaints percentage means a company that can be trusted. It has a strong financial foundation that enables it to pay claims without issues.
We continue to monitor the company’s progress every year, comparing it to local giants. Our reports aim to help consumers get the best insurance services.
Disability Insurance vs. Life Insurance
Disability insurance and life both cover income replacement, but they also differ in several ways. Life insurance pays out a lump sum benefit to the beneficiaries upon the death of the insured, while disability insurance pays out a monthly income to the insured if they become disabled and are unable to work.
The premiums for life insurance are generally lower than for disability insurance since the likelihood of the insured dying during the policy term is usually lower than the likelihood of the insured becoming disabled. Disability insurance premiums are higher due to the increased risk of disability and the potential for the insurer to pay out benefits for a longer period.
Life insurance benefits are usually paid out in a lump sum, while disability insurance benefits are paid out in monthly installments. Disability insurance benefits are also subject to a waiting period known as an elimination period, during which no benefits are paid, while life insurance benefits are typically paid out immediately upon the insured’s death.
Common Questions About Ameritas Disability Insurance
Is Ameritas a good company?
Yes. Ameritas is one of the largest insurance providers on the market. It has received the highest ratings from its party overseers, where it has proven a strong financial capability. You can get a long- or short-term policy with an easy underwriting process.
Is it worth it to buy disability insurance?
Disability insurance is the best way to protect your income because it provides financial support if you become unable to work due to illness or injury, ensuring that you can continue to pay your bills and maintain your lifestyle. Unlike other types of insurance, disability insurance is specifically designed to protect your income, making it an essential part of any financial plan.Without disability insurance, a professional may have to rely on savings or government benefits, which may not be enough to cover their expenses. Disability insurance can provide peace of mind and financial stability in the event of a disability.
What are the cons of disability insurance?
Coverage limitations: Disability insurance policies may have limits on the amount and duration of benefits paid out, as well as specific exclusions for certain types of disabilities or pre-existing conditions.
Waiting period: Most disability insurance policies have a waiting period before benefits kick in, which means that you may need to rely on other sources of income or savings during this time.
Despite the potential disadvantages of disability insurance, it is still important to have it because it provides a financial safety net for individuals who may become disabled and unable to work due to injury or illness. Without disability insurance, such individuals may struggle to make ends meet and maintain their lifestyle.
Who can qualify for disability insurance?
Individuals who earn an income and rely on it to support themselves and their dependents are generally eligible to obtain disability insurance from a company. The exact eligibility requirements can vary by insurer and policy, but in general, individuals must be in good health and not have pre-existing conditions that would prevent them from working. Some occupations may also be considered high-risk and may require a more specialized policy.
What are the best disability insurance companies?
There are several disability insurance companies in the USA. Ameritas ranks among the top. Some of the factors to consider in the best company include the benefit period, the insurance policy terms, company ratings, products offered, universal life insurance offers, and more. The top companies to consider when searching for disability insurance include, MassMutual, Guardian, The Standard, Principal and Ameritas.