We have all heard the stories of eccentric stars insuring parts of their body for millions of dollars. While it may seem eccentric, it actually has a very practical basis. A baseball player who injures his throwing arm forcing him into early retirement may lead to millions of dollars in lost income not only for him, but also for the team's owner. A court reporter may be out of a job if she develops carpal tunnel syndrome. There is a value on body parts that directly affect your ability to make a living. Under the right circumstances, it is entirely feasible to write an insurance policy on a part of your body such as your hands.
Confirm that your insurance company underwriting department writes specialty insurance contracts. Many mainstream companies may not carry this type of policy if the company you work for does not, you may find a referral to one of those that do. Chubb Group and Lloyd's of London are two examples of insurance companies offering specialty insurance policies. Your underwriting department will be able to give you the best guidelines to follow.
Review with your client the reason for an insurance policy on her hands. You should confirm the line of work she does and do a complete income history for her. Obtain tax returns, paycheck stubs and other pertinent information that substantiates the need for insurance.
Help the client fill out the application for a specialty disability policy. Explain the process to your client: your company's underwriting department will assess his income, life expectancy and the significance of his hands to his future earning ability. He may need to have a physical exam and x-rays done on his hands to rule out preexisting conditions.
Review the terms of the policy with your client when it arrives from underwriting. Explain what will pay a benefit and what exclusions there are. For example, if she injures her hands doing a dangerous activity such as rock climbing, your company will not be liable for the claim. She must use prudence when using her hands for recreational activities.
Tips & Warnings
- Basic disability insurance policies value both hands for an average of $250,000.
- Photo Credit hands in hands against sky, friendship concept image by JoLin from Fotolia.com
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