NMFN: IP, DI, Disability Overhead Expense

Disability Overhead Expense

Offered through The Northwestern Mutual Life Insurance Company

When you're disabled and your income is drastically reduced or stopped, you still have to face your continuing overhead expenses—rent, bills, salaries, and more. In order for your practice or business to stay open, you must continue to pay for these ongoing expenses. Northwestern Mutual's Disability Overhead Expense coverage is designed to provide a benefit for covered overhead expenses when a business owner is totally or partially disabled.

Non-Cancellable and Guaranteed Renewable
Beginning Date
Total Disability
Partial Disability
Aggregate Benefit Amount
Carryforward of Unused Benefits and Expenses
Waiver of Premium
Presumptive Total Disability Benefit

Non-Cancellable and Guaranteed Renewable

The Disability Overhead Expense policy is guaranteed renewable upon timely payment of the premium to the first policy anniversary after the Insured's 65th birthday. During that period, the policy can neither be canceled nor have its terms or premiums changed by the Company.

Beginning Date

Disabilities are not always measured in consecutive days. Northwestern Mutual allows an extended period of time to accumulate days of total or partial disability toward the Beginning Date of benefits. Days of disability due to different causes will be accumulated to satisfy the Beginning Date.

Total Disability

If the Insured is totally disabled, he or she is unable to perform the principal duties of his or her regular occupation. If one or more principal duties can be performed, the Insured is not totally disabled and may qualify as partially disabled.

Partial Disability

Partial disability occurs when:

The Insured is unable to perform one or more, but not all, of the principal duties of the regular occupation. The Insured is unable to spend as much time at the regular occupation as before the disability.

Due to the disability, the Insured's Covered Overhead Expense for the month is more than the total income for the month by at least $200.

The Insured is gainfully employed in an occupation.

Aggregate Benefit Amount

There is no limitation on the length of time benefits can be paid. However, the Aggregate Benefit Amount specifies the maximum amount payable to the Insured while disabled from an injury or illness for both total and partial disability.

Carryforward of Unused Benefits and Expenses

Unused benefits and expenses can be carried forward for use in future months during the same disability.

Waiver of Premium

Premiums are waived which become due on the policy while the Insured is totally or partially disabled if the disability lasts beyond the Beginning Date.

The Company will continue to waive premiums after the Aggregate Benefit Amount has been paid if the Insured is totally disabled and is not gainfully employed in any occupation. Premiums will also be waived if the Insured is partially disabled and is not gainfully employed in any occupation other than his or her occupation.

The Waiver of Premium Benefit is subject to limitation while the Insured is outside the United States.

Presumptive Total Disability Benefit

You are automatically considered totally disabled for specified disabilities. This benefit starts with the date of the loss, not the Beginning Date, and is payable for as long as the loss continues until the Aggregate Benefit Amount has been paid. Presumptive disability benefits are payable even if you are able to work.

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