Guaranteed Issue Disability Insurance provides high-limit income protection without medical exams, lab work, or detailed underwriting. It’s designed for companies, executives, medical professionals, and high-income earners who need immediate coverage but can’t afford lengthy approval delays. At Diversified Insurance Brokers, we help individuals and employer groups secure guaranteed income protection up to $250,000 per month—no questions asked.

What Is Guaranteed Issue Disability Insurance?

Unlike traditional disability insurance that requires full medical underwriting, a Guaranteed Issue (GI) plan allows approved groups or associations to enroll eligible members automatically—without individual health exams or income documentation. Once participation requirements are met, every member is accepted up to the plan’s benefit limit.

This makes GI disability ideal for hospitals, law firms, private practices, and corporations where high earners need immediate, simplified protection. Employers can protect top talent while minimizing underwriting friction, and individuals gain access to coverage that might otherwise be unavailable due to health history or occupation risk.

Who Qualifies for Guaranteed Issue Disability?

Guaranteed Issue plans are offered to groups that meet minimum participation thresholds, such as:

• Hospitals, clinics, and physician groups
• Corporate executive teams and law firms
• Professional associations (medical, dental, financial)
• Private business partnerships with high-income earners
• Group enrollments of 3–10 or more participants

When the group participation criteria are met, all eligible employees or partners can receive coverage without submitting medical information or undergoing exams.

Typical Participation Requirements

• Mandatory Enrollment: Three-life minimum
• Voluntary Enrollment: The greater of five lives or 10% participation, with at least ten eligible participants

Once your group meets those criteria, coverage becomes instantly available, usually within days.

Plan Features and Benefit Options

• No medical underwriting or health questions
• Up to $250,000 per month per person in disability benefits
• Up to $10,000,000 career-ending benefit for catastrophic claims
• Elimination periods of 90, 180, or 365 days
• Benefit durations from 60 months to 10 years
• Five-year renewable policy term
• Own-Occupation Definition including medical and specialty classes
• 3/12 pre-existing condition limitation

Who Needs Guaranteed Issue Disability Coverage?

This coverage is best suited for high-income professionals who face underwriting challenges due to health history, lifestyle, or occupational risk. Common clients include:

• Physicians and surgeons with existing group LTD coverage but insufficient limits
• Corporate executives or key employees earning above $500,000 annually
• Business owners or partners seeking coverage without income verification
• Entertainers and high-profile professionals who travel frequently

These policies can complement existing group disability insurance to replace a greater percentage of income—especially when standard coverage caps out at $15,000 or $20,000 per month.

Real-World Example

Consider a large hospital with top-tier surgeons and medical department chairs earning $1 million+ per year. Traditional LTD plans only cover a fraction of their income, leaving a major liability for both the physician and the hospital. By adding a Guaranteed Issue High-Limit Disability plan, the hospital can protect up to 75% of each physician’s income, with issue limits as high as $50,000 per month—no exams required.

Tax Treatment and Deductibility

When structured properly, employer-paid GI disability insurance can be tax-deductible to the business. However, benefits may be taxable when received. Conversely, if individuals pay premiums personally, benefits are generally tax-free. Our advisors will help you determine the most tax-efficient structure for your group or organization.

Group and Executive Plan Integration

Guaranteed Issue Disability Insurance can be layered with existing no-exam individual disability insurance to achieve higher overall income replacement. For example:

• Combine group LTD (Long-Term Disability) with GI coverage for seamless protection
• Add supplemental coverage to cover income gaps beyond traditional LTD limits
• Provide additional benefits for physicians, dentists, or law firm partners

Elimination and Benefit Period Options

Employers and associations can choose elimination periods (the waiting time before benefits start) and benefit periods based on cash-flow needs and budget. Options typically include:

• Elimination Periods: 90, 180, or 365 days
• Benefit Durations: 60 months, 84 months, or 120 months

This flexibility allows large organizations and small partnerships alike to tailor protection that fits each member’s income and contract obligations.

Why Work with Diversified Insurance Brokers

Diversified Insurance Brokers is a fiduciary, family-owned agency licensed in all 50 states with access to over 75 top-rated carriers. Our disability specialists have decades of experience designing custom programs for medical groups, corporate executives, and association clients who need guaranteed, no-exam coverage with minimal red tape.

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