disability income insurance

What is the criteria needed for an individual to qualify for disability benefits

Inability to perform work duties

What is presumptive disability

A condition that'll automatically qualifies insurance for disability benefits like total loss of speech, total loss of hearing, loss of or loss of use of any two limbs, total and permanent blindness

What is a physician care requirement

Being confined to the house and under the treatment of a doctor often called medically defined disability

How often does disability income plans pay their indemnity

Monthly

What is indemnity

The monthly benefit paid in a disability plan

An elimination period is also called

A waiting period

Another way to describe an elimination period is

A Time deductible rather than a dollar deductible

What is the typical time frame for a waiting period

30. 60. 90 or 180 days

A longer elimination time means

A lower premium payment

What are the typical benefit periods

One year, 2 years, 5 years, and to age 65

If a policy has a waiver of of premium feature. When does it become effective

After the waiting period is satisfied

What happens to any premiums paid during the waiting period after a waiver of premium feature has become effective

Any premiums paid during the waiting period or refunded within 90 days

What is an additional monthly benefit rider

The amb Rider pays additional benefit amounts with regular monthly benefits for a limited period of time, usually 6 to 12 months

What is a common reason someone may carry an additional monthly benefit Rider

To pay during the waiting period for a government program that takes a longer time to process disability claims

What is a social insurance supplement Rider

This Rider pays for additional benefits to supplement or fill the gaps left by government programs

What is the waiting period for social insurance supplements

5 months

Some policies only cover injuries that occur during work or outside of work? What is this called?

Occupational- covers both job-related and non-job related. Non-occupational- only covers non-job related injuries

If someone qualifies for partial disability benefits, what does this mean

They can return to work but in a reduced capacity, they only receive 50% of their disability benefits, and for usually no longer than 3 to 6 months

Another type of partial disability is residual disability what are the differences of residual

With residual you're paid whether you can work full-time or part-time, payments are based on the reduction of income, payments persist as long as the reduction continues

The recurrent disability provision does what

Protects employees who return to work but become disabled again for the same or of related cause as their original disability claim

What is the cost of living adjustment Rider

A cola Rider makes sure that A benefit that is currently being received is increased automatically to match increases in the consumer Price index

What is a future increase option Rider

Allows insured to buy additional amounts of disability income insurance at future times without proof of insurability if they have had an increase in income

What is relation of earnings insurance

Allows insurer to change policies benefit if insurance income has decreased. If the benefits are less, a portion of the premium will be refunded

In an accidental death and dismemberment policy, what is the principal sum and what is the capital sum

The principal sum is the death benefit and the capital sum is the dismemberment benefit

When an AD&D Rider is attached to a disability income policy, the benefit is usually expressed as

A multiple of the monthly indemnity amount.

example, the death benefit might be stated as a sum equal to 48 times the monthly disability benefit

What is a rehabilitation benefit

This benefit pays for vocational training to prepare insureds for new occupations if they are totally disabled and unable to return to their normal occupation. It pays for as long as they are disabled and stay in the program

What is a medical reimbursement benefit

Also called a non-disabling injury, it does not pay a disability benefit but instead reimburses from medical expenses incurred to treat a non-disabling injury

What does a return of premium Rider do in disability insurance

Provides for the return of a percentage of premiums paid for a stated period of time. Example: 80% of premiums paid every 10 years

What are some unique aspects of disability underwriting

Occupational considerations, benefit limits, policy issuance alternatives

What is a rated up policy

When an insurer charges an additional premium to cover an increased risk or attach an impairment Rider to a policy that eliminates coverage for a particular condition that would make the individual uninsurable

How long is the typical benefit period in short-term disability and how much is covered.

The benefit is typically 6 to 24 months with no waiting period and 60 to 70% of the employee's compensation

What is the typical coverage period or long-term disability and how much does it cover?

The typical benefit period is 2 years up to age 65. Benefit amounts are usually coordinated with benefit payments from workers, compensation or social security

Similar to key person, life insurance, key person, disability insurance will cover a company for any financial loss due to the death or extended incapacity of a key employee. What is the typical elimination and benefit period for a key person disability policy

Elimination will be 30 to 90 days and the benefit period will be 1 to 2 years

What is a business overhead expense policy

A. Boe is to cover certain overhead expenses that continue when the business owner has been disabled

What are the key points of a boe

They cover business expenses not disabled owner income, elimination period of 15 to 30 days, benefit period of 1 to 2 years

What is disability buy sell insurance

To fund an agreement to buy out the interest of a business owner or partner who becomes disabled and can no longer contribute

How do you qualify for social security disability

You must have paid into social security. Payroll( fica) taxes, earned at least six credits during the last 13 quarters to be currently insured. And meet social securities definition of totally and permanently disabled

For social security fully insured status is achieved when

A person has paid into social security for 10 years earning 40 credits

Once a person becomes eligible for social security disability, what is the waiting period to receive benefits

5 months

For social security, disability benefits are based on what

An individual's primary insurance amount or pia

Who are eligible beneficiaries to receive a benefit expressed as a pia in social security

A disabled worker receives 100%, a spouse caring for a workers. Unmarried child receives 50%, the unmarried child receives 50%.

If a disabled worker with a spouse and young child are receiving social security disability benefits social security disability will ensure a what

Maximum family benefit amount based on workers average earnings

What is workers compensation

A form of insurance providing wage replacement and medical benefits to employees injured in the course of their employment in exchange, mandatory relinquishment of the employees right to sue the employer for negligence

What are the main details of workers compensation

Benefits are payable regardless of fault, the law considers workers compensation benefits to be the employee's exclusive remedy, employees cannot Sue the employer for damages