Ameritas Vs. Guardian Disability Insurance: The Key Differences

Disability insurance provides vital protection if you become too sick or injured to work. Choosing the right policy can be confusing with so many options available. In this article, we’ll compare two popular disability insurance providers—Ameritas and Guardian.

We’ll look at key policy features, coverage options, pricing, financial strength ratings, and more. By the end, you’ll understand the key pros and cons of Ameritas and Guardian so you can decide which provider may be a better fit.

A Brief Comparison Table

Feature	Ameritas	Guardian
Financial Strength Rating	A (Excellent) from A.M. Best	A++ (Superior) from A.M. Best
Disability Definition	Own Occupation	Own Occupation (sometimes switches to Any Occupation after 24 months)
Benefit Periods	Up to age 67	Varies by occupation, often to age 65 or 67
Policy Customization	Yes – benefit amount, waiting period, COLA, riders	Yes – benefit amount, waiting period, COLA, riders
Specialty Offerings	Protector Platinum for physicians, Business Equity for business owners	Physician and Dentist Disability, Business Overhead Expense
Pricing	Lower for professionals, competitive for white collar after age 40, higher for blue collar	Lower for many white collar and blue collar occupations, competitive for professionals
Claims and Customer Service	Positive reputation	Positive reputation

Overview of Ameritas and Guardian

First, let’s look at some background on each company.

Ameritas is a mutual insurance company founded in 1887. They offer a range of insurance products including dental, vision, hearing, life, disability, and more. Ameritas focuses exclusively on insurance rather than other financial services.

Guardian was founded in 1860 and offers dental, vision, life, disability, and other insurance. They also provide wealth management, retirement planning, and other financial services. Guardian is a stock insurance company rather than a mutual company.

Both Ameritas and Guardian have strong financial strength ratings indicating their ability to pay out future claims. Ameritas has an A (Excellent) rating from A.M. Best while Guardian has an A++ (Superior) rating from A.M. Best.

Also Read: Comparison Between Quotacy And Policygenius

Key Differences Between Ameritas And Guardian Disability Insurance

• Disability Insurance Policy Features

Now, let’s dive into some key policy features to understand how Ameritas and Guardian disability coverage works.

Definition of Disability

The definition of disability determines when your benefits kick in if you’re unable to work due to illness or injury. Both Ameritas and Guardian offer an Own Occupation definition for most policies.

This means you’re considered disabled if you cannot perform the material duties of your own occupation that you were engaged in when the disability began. This is the most comprehensive and flexible definition available.

Some Guardian policies may limit your definition of disability to Any Occupation after 24 months. This means you must be unable to work any occupation to continue receiving benefits.

Benefit Periods

The benefit period determines how long you can receive payments if approved for a disability claim.

Ameritas offers benefit periods up to age 67. Guardian also offers benefits to age 67 for certain occupations like physicians.

For other occupations, Guardian caps benefit periods at 5 years, 10 years, to age 65, or to age 67 depending on your career.

So for the longest coverage, Ameritas has an edge for benefit periods. But both providers offer lengthy benefit periods covering you deep into retirement years.

Coverage Types

Ameritas and Guardian both offer short-term and long-term disability insurance policies:

1. Short-term disability covers you if you become disabled for up to 6 months. This protects your income while you wait for long-term benefits to kick in.
2. Long-term disability covers longer disabilities lasting 6 months or more. This protects your income for an extended period until you recover and return to work.

Within long-term disability, both Ameritas and Guardian offer Own Occupation or Any Occupation versions. Own Occupation policies cost more but provide more comprehensive coverage.

Policy Customization

You can customize your Ameritas or Guardian disability policy in a few key ways:

1. Set your maximum monthly benefit amount
2. Choose your benefit period length
3. Select a waiting period before benefits begin
4. Add a cost of living adjustment to increase your benefit over time
5. Purchase a future purchase option rider to increase coverage later without medical underwriting

This flexibility helps you dial in the right amount of coverage. You can also elect riders like catastrophic disability to meet your specific needs.

Also Read: Is New York Life Better Than Prudential?

Special Occupation Options

Both Ameritas and Guardian cater to certain occupations with customized coverage options.

For medical professionals, Ameritas offers its Protector Platinum disability insurance. This includes higher benefit amounts, longer benefit periods, and enhanced definitions of disability.

Guardian offers its Physician and Dentist Disability program. Features include Own Occupation coverage, retirement protection, and Social Insurance Substitute rider to replace government benefits lost due to disability.

For business owners, Ameritas offers Business Equity insurance to fund a buy-sell agreement if you become disabled.

Guardian offers Business Overhead Expense insurance to cover fixed business expenses during disability.

So both providers have specialized offerings for occupations with unique insurance needs.

• Disability Insurance Pricing

Disability insurance rates vary based on factors like age, gender, health, occupation, and policy customizations. However, some general observations can be made about Ameritas and Guardian’s pricing.

For professionals, Ameritas tends to offer lower premiums than Guardian at most ages. For example, a 35 year old anesthesiologist could pay $2,800 annually with Ameritas versus $3,600 with Guardian for a $10,000 monthly benefit.

For white collar occupations, Guardian often has lower premiums than Ameritas when applying in your 20s or 30s. But after age 40, Ameritas premiums can be cheaper for similar coverage.

For blue collar workers, Guardian’s rates are generally lower than Ameritas across all ages for basic Own Occupation policies.

The pricing advantage shifts between the two companies depending on your occupation and age. Getting quotes from both can help find potential savings.

• Claims and Customer Service

An insurer’s claims handling and customer service are crucial when you’re relying on benefits.

Both Ameritas and Guardian have below-average complaint indexes according to the National Association of Insurance Commissioners (NAIC). This suggests a smaller volume of complaints relative to other insurers.

In online reviews, customers for both Ameritas and Guardian highlight responsive customer service teams and quick disability claim processing. Satisfaction seems reasonably high with both providers.

When it comes to paying claims, Ameritas and Guardian have solid reputations in the disability insurance space. You can expect a smooth experience with either provider if you ever need to file a disability claim.

• Financial Strength Ratings

As mentioned earlier, Ameritas and Guardian receive strong financial strength ratings from insurance rating agencies:

1. Ameritas: A (Excellent) from A.M. Best
2. Guardian: A++ (Superior) from A.M. Best

These ratings give a sense of each company’s ability to pay out future claims. Both get high marks suggesting they have sufficient financial resources to make good on their commitments to policyholders.

Guardian has a slight edge with their top A++ rating from A.M. Best. But both providers are on solid financial footing.

Pros and Cons of Ameritas and Guardian

Now that we’ve compared major features and policies, let’s summarize the key pros and cons of Ameritas and Guardian disability insurance:

Ameritas Pros

• Lower premiums for some occupations like medical professionals
• Long benefit periods up to age 67
• Specialty offerings for physicians and business owners

Ameritas Cons

• Slightly lower financial strength rating than Guardian
• Fewer overall product offerings compared to Guardian

Guardian Pros

• Top A++ financial strength rating
• Competitive pricing for many occupations
• Wide range of insurance products and financial services

Guardian Cons

• Lower benefit periods and Any Occupation limitations for some policies
• Mixed pricing advantage relative to Ameritas depending on your occupation

There are solid reasons to consider either disability insurance provider. Comparing quotes and policy details for your specific situation can help identify the better value.

Also Read: Comparison Between AIG And New York Life

Frequently Asked Questions (FAQs)

The Bottom Line

When choosing between Ameritas and Guardian for disability insurance, there are reasonable arguments for either provider. Comparing quotes for your occupation, age, and desired coverage is the best way to make an informed decision.

Both companies have highly-rated policies, good financial strength, and positive reputations. Focus on finding the right blend of features and pricing to protect your income in case the unexpected happens.

Whichever direction you go, having disability coverage provides essential peace of mind. Make sure you secure a policy that fits both your insurance needs and budget from a reputable provider like Ameritas or Guardian.