Impaired Risk & Specialty Disability Insurance
When traditional carriers can't — or won't — insure an income, we turn to the Lloyd's of London specialty market. Our specialty disability plans layer on top of existing coverage or stand in when traditional policies aren't available.
High-Limit Disability Insurance
Traditional disability insurance carriers limit the size of monthly benefits, which makes protecting a high income a challenge. Group long-term disability typically replaces about 60% of income up to $10,000 per month, and adding individual DI usually brings total protection to $20,000–$25,000 per month — enough to cover incomes up to roughly $400,000.
High-Limit Disability is the final layer of income protection. With issue limits up to $250,000 per month or more, it can protect annual incomes of $5,000,000 or more at a 65% income replacement level — without replacing the coverage you already have.
- Non-cancelable term policy
- Specialty own-occupation definition of disability
- Domestic and international coverage
- Monthly benefit up to $250,000 or more
- Lump sum benefit up to $100,000,000 or more
- Elimination periods of 30–365 days
- Benefit periods of 12–120 months or to age 65, 67, or 70
- Up to 75% income replacement
- Optional residual and cost of living adjustment riders
- Issue ages up to approximately 75
Specialty Disability Plans
Beyond high-limit coverage, the specialty market offers purpose-built plans for situations traditional carriers rarely touch:
Loss of License
For professional pilots whose FAA medical certificate is suspended or revoked — even when they have no physical limitation that would trigger a traditional disability policy.
StarCover for Entertainers
Income protection for actors, performers, and content creators, with an optional disfigurement rider for appearances that can no longer be corrected or disguised.
Sports Disability
Draft protection for top prospects, coverage for professional athletes with guaranteed or non-guaranteed contracts, and plans for professional golfers and motorsports competitors.
Severance Disability
Covers an individual during unemployment under a severance agreement, typically issued with a 12- or 24-month term that mirrors the agreement.
Contract Guarantee Disability
Indemnifies contractual obligations that require disability financial protection — employer/employee relationships, partnerships, and more.
Guaranteed Issue Multi-Life
Firms with as few as three individuals can layer on guaranteed-issue excess disability coverage with no medical underwriting — voluntary or mandatory.
Hard-to-Place Cases We Can Cover
Traditional carriers decline or postpone applicants for reasons the specialty market is built to handle. We can help place cases involving:
Medical & Substance Abuse Histories
Complex medical or substance abuse histories that make an applicant uninsurable or postponed in the traditional market.
Occupational Risks
Offshore oil platform workers, miners, merchant marines, artists, air traffic controllers, and those working from home.
Age
Most carriers stop issuing new policies in the early 60s — specialty coverage can be issued into the mid-70s.
High Net Worth
Applicants whose financial strength is treated as a moral risk by traditional underwriting.
International Residence
Coverage for persons anywhere in the world, without requiring claimants to return to the USA.
Target Markets
Specialty disability coverage is a strong fit for high earners and risks that traditional carriers can't place, including:
- Attorneys and brokers
- Physicians, surgeons, and dentists
- Executives and other white collar professionals
- Entertainers and content creators
- Professional pilots and athletes
- High net worth individuals
- Individuals declined or postponed by traditional carriers
- Individuals living or working internationally
Common Questions
What is impaired risk disability insurance?
Impaired risk disability insurance is designed for applicants who cannot qualify for traditional coverage — due to medical history, substance abuse treatment, hazardous occupation, advanced age, or high net worth. These cases are underwritten individually in the specialty market rather than declined outright.
What does "high-limit" mean?
High-limit disability insurance provides monthly benefits far above traditional carrier maximums — up to $250,000 per month or more, with lump sum benefits up to $100,000,000. It is the final layer of income protection for highly compensated individuals whose incomes exceed what group and individual DI can replace.
Can this coverage layer on top of my existing policies?
Yes. Specialty policies are written through the surplus lines market and are designed to complement — never conflict with — traditional group long-term disability and individual DI policies. They can supplement existing benefits or act as primary coverage when traditional carriers have declined.
Who underwrites this coverage?
These plans are underwritten through Petersen International Underwriters, a Lloyd's of London Coverholder since 1982, along with additional specialty European carriers. PIU has in-house binding authority and negotiates directly with Lloyd's underwriters for the best available terms.
How much income can be protected?
At a 65% income replacement level, high-limit disability coverage can protect annual incomes of $5,000,000 or more when layered on top of existing group and individual coverage. Replacement percentages above 65% are available when the underlying benefits are taxable.
What policy terms are available?
Policies are non-cancelable term plans with elimination periods of 30–365 days and benefit periods of 12–120 months or to age 65, 67, or 70. Optional riders include residual disability and cost of living adjustment.
Ready to Explore Specialty Coverage?
Download the Specialty and Impaired Risk Disability brochure for full plan details, or call Southwest DI Brokerage to discuss a hard-to-place case.