Disability Income Insurance and Workers' Compensation

These flashcards cover key concepts related to disability income insurance, workers' compensation, and associated definitions.

Disability Income Insurance

Provides financial protection for individuals unable to work due to a disability.

Total Disability

Inability to perform the duties of any gainful occupation or the major duties of a person's regular occupation.

Partial Disability

Inability to perform one or more regular duties of a person's occupation or inability to work full time.

Presumptive Disability

Conditions that automatically qualify an individual for full disability benefits without regular medical exams.

Recurrent Disability

A new disability that occurs after the insured has recovered from a previous disability.

Residual Disability

Compensation for the loss of income when an insured returns to work after total disability but cannot work as many hours.

Elimination Period

The waiting period before disability benefits begin, during which no benefits are paid.

Benefit Payment Period

The time frame during which disability benefits are paid after the elimination period ends.

Key Person Disability Insurance

Insurance that protects a business by covering expenses if a key employee becomes disabled.

Buy-Sell Agreement

An agreement specifying how a business will pass between owners if one dies or becomes disabled.

Workers' Compensation

Insurance providing cash benefits or medical care for workers injured or ill as a result of their job.

Quarters of Coverage (QC)

Measurement used to determine eligibility for Social Security Disability benefits.

Principal Insurance Amount (PIA)

Calculated based on a person's highest income earned over their highest 35 years for Social Security benefits.

Vocational Rehabilitation

Services aimed at helping injured workers reenter the workforce, often covered by workers' compensation.