Ohio National disability insurance review

Ohio National’s disability insurance policy, ContinuON Income Solutions II, is a relatively new product but should still be considered one of the top six disability insurance options for doctors. The disability insurance policy is issued by Ohio National Life Assurance Corp.

To help bring you up to speed on this company, below is an overview of the key provisions and options of Ohio National’s ContinuON Income Solutions II disability insurance policy.

Basics of the Ohio National Disability Insurance Policy

Does it have an own-occupation provision? Ohio National offers own-occupation as a rider on the policy. It is defined as the inability to perform the material and substantial duties required for your regular occupation and being under the regular care of a physician. The rider is available to all occupation classes. Furthermore, medical and dental specialties are considered to be your regular occupation.

Is the policy non cancelable or guaranteed renewable? The policy states that you can renew each year until the expiration date. During this time, the company cannot cancel or change the terms of the policy or change the premiums, as long as you continue to pay premiums on time.

What is the maximum benefit period? To age 70. You can also choose benefit periods to age 67 or age 65. The policy also offers benefits periods of two years, five years and 10 years.

What elimination periods are available? You can purchase coverage with 60-day, 90-day, 180-day, and 365-day elimination periods.

Does the policy pay benefits for mental disorders? Ohio National has a two-year limitation on coverage for mental disorders/substance abuse for all occupation classes. However, if your disorder keeps you confined to a hospital where you are receiving ongoing treatment, disability benefits will be paid up to the guaranteed period. You can also pay for an optional rider that removes the 24-month limitation from the policy.

Cost-of-Living Adjustment (COLA) Rider: ContinuON Income Solutions II offers both a 3 percent and a 6 percent COLA Rider.
The 3 percent rider increases benefits 3 percent per year on a simple interest basis. After disability ends, benefit payment amounts revert back to the original policy amount, unless you exercise the option to buy benefit increase.

The 6 percent rider increases benefit payments each year based on the movement of the Consumer Price Index, from a minimum annual increase of 2 percent and a maximum of 6 percent. The increases will be applied on a compound basis.

On the 6 percent rider, once your disability ends, the amount you were receiving each month, including the COLA increases, will become the your new monthly benefit amount in the event you become disabled later. This does not require an increase in premium payments.

Residual Disability Riders: Ohio National has a basic and enhanced residual disability benefit rider.

The basic rider pays a residual benefit if you have:

  • An earnings decline of at least 15 percent; AND.
  • Either you are unable to perform all of the “material and substantial duties of your occupation; OR you are unable to work in your occupation for 80 percent or more of the time as was usual prior to your disability.

The basic rider will pay the lesser of:

  • 50 percent of your base monthly benefit; or
  • Your loss of earnings / prior monthly earnings x base monthly benefit

For the first six months of residual disability, the benefit will not be less than 50 percent of the base monthly benefit amount for total disability.
Under the enhanced rider, for the first six months of residual disability, there is no income loss provision like there is with the basic residual rider. During this period, the enhanced residual rider stipulates you are residually disabled if:

  • You are unable to perform all of the “material and substantial duties of your occupation; OR
  • You are unable to work in your occupation for 80 percent or more of the time as was usual prior to your disability.

After six months, you must have a loss of monthly earnings of at least 15 percent to continue receiving residual disability benefits.

The benefits you are paid under the enhanced rider are as follows:

  • The residual benefit is the amount you would receive for total disability times the ratio of your loss of earnings during disability to your pre-disability earnings.
  • If this ratio is more than 75 percent, you will be considered totally disabled and paid 100 percent of your policy’s benefit amount.
  • For the first six months of residual disability, the benefit will not be less than 50 percent of the base monthly benefit amount for total disability.

Guarantee of Physical Insurability Rider: Ohio National offers a Guarantee of Physical Insurability Rider. This rider enables you to purchase additional coverage on your policy anniversary up to age 60, provided you meet financial eligibility requirements and you are not yet disabled. The maximum increase amount is equal to one-half of the base monthly benefit.

You can also apply for a special increase amount that will provide more than the maximum limit if you are no longer eligible for group disability coverage or you have a at least a 50 percent increase in earnings.

In addition, you can exercise a one-time increase in benefits on the first policy anniversary following a disability. The amount of the increase is the lesser of $1,000 or the amount you qualify for based on your average annual income for the 12 months prior to disability.

Catastrophic Disability Rider: This rider provides additional benefits in the event you are unable to perform at least two of the six activities for daily living; or you require “substantial supervision due to severe cognitive impairment.”

Additional Ohio National Disability Insurance Policy Benefits

Presumptive total disability benefit: The policy will waive your elimination period if you sustain a total loss of at least one of the following: sight in both eyes,hearing in both ears, use of both hands, use of both feet, use of one hand and one foot. The loss is not required to be permanent and the elimination period would be waived even if you are able to work.

Hospice benefit: If hospice services are initiated, the elimination period will be waived.

Survivor benefit: If you die while receiving disability benefits, the policy will pay full benefits for the remaining month plus two additional months following death.

Recurrent disability benefit: If disability stops and reoccurs within 365 days from the same or related cause it will be treated as one disability.

Colin Nabity

Colin Nabity

Colin Nabity is the CEO and Founder of LeverageRx, an online lending and insurance marketplace exclusively for doctors.

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