Truluma News

Ameritas Announces New Student Loan Repayment Rider

Ameritas has introduced a new Student Loan Repayment Rider to help the approximate 45 million individuals with student loan debt.  The rider can be added to an individual disability insurance policy and is specifically designed to provide your clients with funds to repay their student loans in the event an injury or illness prevents them from working.

Details of the rider:

  • Requires a disability policy with at least $1,000 base benefit
  • Monthly loan reimbursement up to $2,500 (total combined loans, up to three)
  • Covers up to three separate loans
  • Coverage periods 5-15 years (must be less than or equal to the base benefit period)
  • Pick either a 90-day or a 180-day elimination period (must be equal to or greater than the base)
  • Definition of disability matches the definition of the base policy

Unique Market Advantages

While there are a handful of Student Loan Reimbursement Riders in the market, the new rider from Ameritas is currently the only rider that can protect the insured in the event of a partial or residual disability as well as a total disability.

If the policy includes residual disability protection, and the insured is collecting disability benefits under that feature, the Student Loan Repayment Rider will reimburse one-half of the monthly loan payment (not to exceed one-half of the maximum monthly Student Loan Repayment benefit).

Existing Clients

Clients with existing Ameritas disability insurance policies have the ability to add The Student Loan Repayment Rider. Simply complete these forms (UN 1799, UN2852BH, and UN5021), and follow the criteria below, to submit the request.

1) Policy criteria: Rider can be added on policy anniversary, at attained age.

  1. a) Available on existing DInamic Foundation DI policies ending in A or N.

2) Illustration criteria: Quoting the rider by itself must follow the selections of the base policy.

2. a) Occ class, plan type, definition of disability, discount, etc.

2. b) Loan coverage periods, 5-15 years (must be less than or equal to base benefit period)

2. c) Elimination period, 90 or 180 day (must be greater or equal to base elimination period)

Contact Truluma for more information.

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