Disability Income Insurance for Farmers/Agribusiness, Contractors and Small Business

In addition to General Disability Income coverage, we provide specific coverage for the following:

Farmers Disability Income
Businessowners Disability Income
Business Overhead Expense

Farmers and Agribusiness Owners

The Farmers Disability Income (FDI) policy provides:

Monthly income for total and partial disability
The amount of monthly benefit which may be issued is determined by the insureds earned income
It has a two-year Own Occupation definition of disability
It is guaranteed renewable
Elimination periods are the same for sickness and injury
Periods available are 30, 60, 90 or 180 days
Benefit durations can be 1 year (issues as a rider), 2 year (issued as a rider r separate policy), 5 year or to age 67
Rates are determined by age, sex, tobacco usage and occupation class

The FDI-qualified person is self-employed in agri-business or works for a family member owned agri-business in a qualified occupation. All qualifying farmers are given Occupational Class A for the FDI.

Business Owners Disability Income

The Business Owners Disability Income (BODI) policy provides:

Monthly income for total and partial disability
The amount of monthly benefit which may be issued is determined by the insureds earned income
It has a two-year Own Occupation definition of disability
It is guaranteed renewable
Elimination periods are the same for sickness and injury
Periods available are 30, 60, 90 or 180 days
Benefit durations can be 1 year (issues as a rider), 2 year (issued as a rider or separate policy), 5 year or to age 67
Rates are determined by age, sex, tobacco usage and occupation class

The BODI-qualified person is self-employed in a qualified business or works for a family member owned business in a qualified occupation.

For example:

Contractors that are self- employed such as carpenters, electricians, HVAC installers and landscape gardeners, or business owner/operators with other duties (such as administrative, sales, estimating, etc.).
Merchants that are self-employed such as owner operators of retail stores or service stores.

These risks are usually classified as B, unless they are self-employed (called business owner/operator) and have other duties (such as administrative, sales, estimating, etc.), then they may qualify as A to AA risks. Merchants' coverage applies to risks such as retail sales stores, service stores classified as either AAA or AA. Farm Family has been able to re-classify many of these risks into more favorable classifications than they would receive under the GDI policy as a result of the insurance industry's and Farm Family's claims experiences.

Business Overhead Expense

The Business Overhead Expense (BOE) policy is designed to help the small business owner keep his/her business viable during a time of disability by reimbursing the business owner for monthly business expenses such as rent, utilities, property and payroll taxes. This product completes a comprehensive income-protection package when selected in addition to a BODI policy. BOE provides:

Monthly benefits for total and partial disability
The amount of monthly benefit which may be issued is determined by the insureds business expenses
It has a two-year Own Occupation definition of disability
It is guaranteed renewable
Elimination periods are the same for sickness and injury
Periods available are 30, 60, 90 or 180 days
Benefit durations can be 112, 18 or 24 months
Rates are determined by age, sex, tobacco usage and occupation class

All coverages are subject to the terms and conditions of the policies themselves. These policies provide disability income insurance only. They do NOT provide basic medical, basic hospital or major medical insurance (as defined by your state insurance department). The expected benefit ratio for these policies are 80% for the short-term benefit period (1-2 years); 60% for the long-term benefit period (5 years or to age 67). This ratio is the portion of future premiums which the Company expects to return as benefits, when averaged over all people with a policy. These policies do not duplicate benefits provided by federal or state legislation such as workers' compensation.

These policies contain certain exceptions, reductions or limitations. There is an Elimination Period which is the number of consecutive days at the beginning of a continuous period of total disability during which no benefits are payable under the policies. Medical examinations are required of applicants in certain cases.

These policies are issued from ages 18-60, and are guaranteed renewable upon timely payment of premiums until the policy anniversary nearest to the insured 67th birthday or the insured's collection of retirement benefits under Social Security, if earlier. The Company reserves the right to change the premium amount by premium class. Any new premium will be based on the insured's age, sex and premium class on the Date of Issue of the policy. It will take effect on the policy anniversary next following the change. Any change in premium rates is subject to the prior approval of the Superintendant of Insurance.

No benefits will be paid within two years (one year in WV) from the date of issue for any pre-existing condition which was misrepresented or not revealed in the application for a policy, and which causes or controbutes to your disability. A pre-existing condition is the existance of symptoms that would cause an ordinarily prudent person to seek diagnosis, care or treatment; or a condition for which medical advice or treatment was advised by or received from a physician within a 2-year period (one year in WV) prior to the effective date of your coverage.

Neither Farm Family nor its agents give tax advice. Please contact your attorney or a tax advisor on your specific situation.

Farmers Disability Income; FDI 40-182 1101; Business Owners Disability Income: BODI 40-184 1101; Business Overhead Expense BOE 40-185 1101