To be eligible for individual disability income insurance, an individual must be working full-time and is defined as
1.Working a minimum of 30 hours per week.
2. Earning an income of at least $20,000 annually.
3. be working away from home with exception to persons working in a home based business may qualify when their duties require them to leave their home office location regularly to conduct their business.
4. have worked in the same occupation for a minimum of 12 months.
Individuals who have become self-employed in the 12 months prior to the application are not eligible for disability insurance.
5. Be between the ages of 18 and 60.
6. be able to read and speak English since the client must be able to understand the terms and conditions of the policy.

A. Occupation

Insurers use an occupational class schedule to determine the level of risk associated with different occupations.The applicant's class determines by both the type of coverage and the premium to be paid for that coverage. It is essential that you to describe your occupation accurately with a complete listing of their duties, in the application.

If the proper classification is hard to determine, it is acceptable to quote the lowest class that might apply. Include a full description of the job and the duties with the application and ask the underwriter for a class adjustment.

B. Medical Underwriting

When completing the application, it is extremely important that the medical history be completed with particular care. Details of any yes answer must be provided, including the date of occurrence, doctors seen, diagnosis made, treatment, as well as any recurrence or residual effects.

C. Impairments underwriting

Disability insurance is more strictly underwritten than life insurance.

1.Pre-existing conditions: Following are several methods that can be used to address these conditions:

a) The underwriter can require the addition of riders, waivers or exclusions from coverage for a specific problem or part of the body

b) The underwriter can charge an extra premium when there is a pre-existing medical condition that may result in a variety of disabilities

c) The elimination period may be extended.

d)The benefit period can be shortened. This method is often used in combination with adding a rating.

e) Where the application is approved on a modified basis, optional benefits may not be made available to that insured.

If the application is declined, either for medical, financial or other reasons, the applicant should be immediately notified. The insurer will send a refund of premiums directly to the applicant.

D. Financial underwriting
Many insurers use Issue and Participation Tables to determine the amount of benefit they are prepared to issue for various income levels.
a) Earned Income: Earned income consists of salary, bonuses, commissions, fees and any other payment that the person receives as a result of their work activities. The underwriting process reviews 2 years of financial documents.

b) Unearned Income
Unearned income is income such as net rental income, investment income,interest payments, capital gains, pension benefits and other disability group insurance.
Generally, when the unearned income is less than 15% of the earned income, the unearned income is ignored during underwriting. When the amount of unearned income is equal to or greater than 15% of the earned income, this amount must be taken into account to avoid over-insurance.

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