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Is the Residual Rider Important? You Bet IT IS!
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I often hear clients that state; "If I can't do this job it will be due to a total disability, otherwise I will be at work."....Perhaps, but let's break that down.
First, the Residual Rider Definition: It can be exercised on the front or back end of a total disability. A typical contract will pay a residual benefit if you suffer a loss of at least 15% - 20% of your net earned income and able to perform one or more, but not all of the material and substantial duties of your occupation or you are unable to engage in your occupation for more than 80% of the time prior to your disability.
Here is the Residual Rider is real terms:
The Residual Rider can work in two ways; first, on the front end of a total disability, take an attorney who is diagnosed with cancer, beginning chemotherapy....at the beginning he/she can work a few days, but then as the chemo builds up works less and less...with the residual rider those missed days count towards satisfying the elimination period, once the elimination period is satisfied, the residual kicks in paying the physician a percentage of the benefit based on 15% - 20% or greater loss of pre-disability earnings. Without the Residual Rider, the physician might be working part time but will not receive any benefits as the policy then reverts to a "Total Disability Only" policy.
Second, the rider can also be important on the back end of a total disability...Let's take the same attorney, now coming back after a total disability, and even though working full time, is still showing a loss of earnings, as it will take time for the to rebuild his client base. The residual rider will pay if there is still a 15% - 20% or greater loss of net earned income as a direct result of the disability. Again, If there was not a residual rider, once back to work; Total Disability benefits end as the attorney is not considered totally disabled....with this scenario it's all or nothing. Without the residual rider your clients are left with a huge hole in their contract.
Remember we write disability coverage to help one get back to work, and back working full time, if not totally disabled.
Think of your clients, and you can plug any occupation into the "Real Terms" example; physicians, dentists, sales executives, small business owners, to name a few.
Please feel free to give us a call if you would like to discuss the Residual Rider, and how we can this rider will help fulfill your clients disability needs!
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Archived News and Notes Found Here | | |
We have recieved a number of notes from brokers who are pleased that we doing our news and notes on a more regular schedule. Please feel free to share with your colleagues whom you feel would benefit from the information and services we provide. Referals are always appreciated.
If you missed a prior newsletter or want to reference something we have written in the past, you can find our archived DI News and Notes by clicking here... |
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Joint Lake Outpost Trip - Summer 2012
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In the past I have done stories about trips I have taken to hike the Appalachian Trail and fishing in Canada. Someone asked me if I was going to do a story on our latest Canada trip so whenever anyone requests we do something we think others might be interested too, so here goes...
First, what is an outpost camp? An outpost camp is where you go to have a lake/river system to yourselves. You stay in a cabin, or I have also stayed in a tent, which is not as nice. You cook your own meals, drive your own boat, fish where you want, when you want, no guides, clean your own fish, and call in by short wave radio once a day to let everyone know you are not lost, and not in need of medical attention. Our outpost camp/cabin, sleeps from 2 to 8 people. It does have running water, actually both hot and cold, a shower, and recently an indoor bathroom. It has a propane operated refrigerator, which always puzzles me how something that provides heat actually cools. A four burner gas stove, sink, and eating table provide our home away from home. To view one of these just go to BoltonLake.com and click on Outposts. 14 foot boats with 15 horse power motors got us everywhere we needed to go on the water. A gas generator to provide electricity for lights and power to the one outlet in the cabin and to charge the main battery.
Planning: In looking back this was my 7th trip to this particular lodge/outpost facility. I have now fished all the lakes available to them including the brook trout fly in river system where I caught trophy brook trout of over 21 inches. I sent my first e-mail for this trip on July 11th 2011 to inquiry about the availability of 5 days the following summer at one of their out post camps. The reply came the same day that they were booked for the entire summer of 2012. Three days later I receive another e-mail saying they had a 5 day spot open on Joint Lake in late June if that would work. I checked with the four guys I had talked to about going and they all said it would, so we took the spot, sent in our deposits to hold it and than began our own personal planning for our time there a year later. Not quite the same as climbing Mount Everest but still a lot of fun to start planning, the trip, tackle to buy, rods to take, food, drink, equipment, clothing, checking the day time temps, arrival and departure times, and so on.
Part of the planning was to decide on the mode of transportation to get there. After the last trip when the airlines (United) lost ALL of our gear on the way up and did not get it to us until the 3rd day we were at the outpost, caused me to want to take that decision out of their hands, not to mention the re-routing of the return trip from Chicago to Denver, and then flying the red eye back to Charlotte. This time we all agreed to drive, the 1,630 miles to Winnipeg so we would have all of our gear with us. This actually turned out really good and I would do that again next time. We took turns driving my SUV, a Ford Expedition with 230,000 miles on it and we made the trip in just 26 hours. We spent the night in a hotel near the airport and began our journey on a twin engine Beach craft early the next morning. We then hopped on the single engine three seater float plane for our 15 minute flight over to Joint Lake. Two men at a time, one in the back and one in the co-pilots seat. We were on the water fishing by 11 AM that morning.
We caught lots of fish, 100's actually. We ate a lot of fish too. We had rain only on the first day and wind only the first and second day. We had Joint Lake to fish, 90 square miles of water, plus the incoming river system and the outgoing river system. We covered it all in the 5 days. Bald Eagles with young in their nests was a visual treat for us. Beaver repairing their dams and homes were swimming around the lake and river, and we even saw a moose in one of the bays. If you like great catching, not just fishing, solitude, peace, beauty, going at your own pace, being by yourselves in the wilderness, sunsets at 10 PM and sunrises at 4 AM, then by all means consider this experience. By the way the total cost for this trip came to $2,042 per person and that was absolutely everything.
The keys to a trip like this, are to make sure the guys/gals you are going with all get along, no what to expect, and are willing to pitch in with what needs to be done. I have been up there with lots of different people and it has always worked out great, but we make sure we communicate ahead of time. Another key is to find a place that is dependable, well run, and with people who know what they are doing. That is why I go back to this lodge and outpost facility because I know them and they are same owners I started with many years ago. This is their business, not a side line. They live at the lodge and run the lodge so the service is top notch. Plan ahead at least a year as the good places are booked up. If it is easy to get a place that might be a warning. Enjoy the planning part as that is at least half the fun. Create good memories, they last a lifetime. Call Mark or I if we can answer any questions for you. Yes, we were together on this trip with one of our brokers and the Principal of the elementary school that Mark's kids attend. If this is not your thing, find something that is and enjoy with someone you care about.
Click here to see a slide show of the trip...
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As always, we are thankful for the opportunity to work with you and your clients. Please don't hesitate to contact us with you disability insurance needs.
Sincerely,
Phone 704-544-0405 or 888-298-7500
Fax 704-544-1706
Physical Address 7401 Carmel Executive Park, Suite 205 Charlotte NC 28266
Mailing Address P.O Box 471208 Charlotte NC 28247
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