Disability Income Policies Overview

Disability Income INsurance

Replacement of income that is the pcertange of insured’s wage prior to disability

Always less than pre-disability earnings

Own Occupation VS. Any Occupation

Unable to perform duties of their OWN occupation, more specific and favorable

EX: A Fitness trainer injured from dropping a weight, considered Totally disabled as they’re unable to train gym members

Unable to perform ANY duties of their own occupation, restrictive and limited

EX: A Fitness trainer injured from dropping a weight, considered Partial disabled because they can still work at their gym in other capacities (front desk/cleaning)

Total Disability VS. Partial Disability

Inability to perform major or any duties of occupation

Inability to perform complete duties of occupation, temporary and less benefits

Presumptive Disability

Conditions that automatically qualify for full benefits

Dismemberment, Total and permanent blindness, Loss of Speech or Hearing

Think in Twos, two eyes, two arms, two legs, etc…

Recurrent Disability

When an insured experiences the same incident/disability within a specific amount of time.

MUST BE THE SAME

Broke right leg twice

Residual Disability

Loss of income benefit from a disability that gradually decreases as the insured is able to continue work until they’re matching their previous wage(s)

Disability Income Policy Periods

Event or Occurence, day the injury or loss that happens

Elimination Period, prevents benefits for short-term disability

Benefit Period, insured recieves the benefits

Disability Buy-Sell Agreemnt

States how a business will pass between owners in the event of a death or disability

Disability Overhead Insurance

Benefits to pay for Business’s cost of operations / overhead costs in the event of death or disability

Social Security Disability Benefits

Eligibility, strict reqs Quarters of Coverage and entry req

Waiting Period of 5 months

Benefit Amount

Benefits Stop

Quarters of Coverage

40 Quarters of Coverage needed to qualify for Social Security

Workes Compensation Insurance

Benefits paid to workers as a direct result of the occupation/working. Payable regardless of fault or negligence

Unlimited medical payment coverage

Income for loss of wages

Rehabilitation cost coverage

Death benefit