Disability Income Insurance

What is disability income insurance?

Provides supplementary income due to a disability from illness or accident that prevents them from working at their regular employment.

What is Own Occupation?

Where the disability actually affects the job duties of the occupation the’re in. e.g. A graphic designer losing their fingers on an accident.

What is Any Occupation?

Disabled if they are unable to perform the duties of any occupation they are qualified for by education, training, or experience. e.g. A graphic designer may not be able to design, but they can teach = not qualified for disability.

What is Pure Loss of Income (Income Replacement Contract)?

• pays a benefit if the insured experiences a loss of income from illness or injury.

• they receive the amount of income the insured is receiving at the time of the claim.

• if they can work at lesser pay, the insurance will cover the difference to equal the full amount.

What is Presumptive Disability?

Automatic qualification if conditions are met.

• loss of or loss of use of any 2 limbs

• total and permanent blindness in both eyes

• loss of speech

• total and permanent loss of hearing in both ears

What is the Loss of Earnings test?

With presumptive disability, the insured’s earnings are measured before and after the disability. If post-disability earnings are below pre-disability earnings, they are considered totally disabled and eligible for full benefits, even if they are earning some income.

What is the Physician Care Requirement?

Confined to the home and under treatment of a doctor.

What is the Elimination Period?

The waiting period an insured must be disabled before benefits begin. Eliminates the insurance company from paying claims for short term or temporary disabilities. Once benefits begin, they are not paid retroactively.

What is the Benefit Period?

Benefits paid during the disability period - 30, 60, 90, 180 days or longer, or age 65. The longer the benefit period the higher the premium.

What is the Waiver of Premium?

• waives premium payments after the initial waiting period.

• refunds premiums made during the waiting period.

What is the Additional Monthly Benefit (AMB) Rider?

Government programs have long waiting periods to process disability claims. The AMB rider pays an additional benefit during first 6 - 12 months.

• pays even if the insured receives government benefits.

What is the Social Insurance Supplement?

Fills gaps left by government programs.

• pays when social benefits are not being paid.

• makes up difference b/w the government benefit and the amount of the rider.

• pays only during the policy benefit period.