Chapter 14 Flashcards
Short-Term Disability Income Plan
Insured or uninsured disability income benefit with a typical duration of 6 months or less
Long-Term Disability Income Insurance
Disability income coverage that provides extended benefits after a person has been disabled for 6 months or longer
Buy-Up Plan
An employee benefit plan under which a covered person can purchase additional coverage (For example, life insurance or disability income insurance) at his or her own expense. Also referred to as a supplemental plan.
Carve-Out (Benefit Plan)
The practice of excluding certain classes of employees from a benefit plan and providing benefits to them under an alternative arrangement. Carve-outs are generally used to contain employee costs or provide broader or tax-favored benefits to key employees and executives.
Any-Occupation
A strict definition of disability that requires a person to be so severely disabled that he or she cannot engage in any occupation
Partial Disability
The inability to perform some stated percentage of job duties or taking a longer-than-normal amount of time in which to complete job duties.
Residual-Disability Benefits
A provision for the replacement of lost earnings due to less-than-total disability. The benefit is based on a person’s reduction in earnings rather than his or her physical condition.
Sick-Leave Plan
An uninsured arrangement for an employer to replace lost income for a limited time period, often starting on the first day of disability
Paid Time Off (PTO) Program
A benefit program that combines sick leave and other types of payments for time not worked into a single program
Own-Occupation
A definition of total disability that requires a disabled person to be unable to perform each and every duty (or material duties) of his or her regular occupation
Waiting (Elimination Period)
A period of time that an employee must be disabled before benefits commence under an employee benefit plan, such as disability income insurance, Social Secuirty, worker’s compensation insurance, and long-term care insurance
Cost-of-Living-Adjustment Rider
Increases in benefit levels because of changes in some index, such as the CPI. These increases apply to Social Security income benefits and sometimes to benefits under private insurance and retirement programs.
Rehabilitation Benefit
A benefit under workers’ compensation laws or disability income plans that provides rehabilitative services for disabled workers. Benefits may be given for medical rehabilitation and for vocational rehabilitation, including training, counseling, and job placement.
Presumptive-Disability Provision
A provision in a disability income contract by which an individual is presumed to be totally disabled as long as certain circumstances exist. Examples include loss of sight or one hand. A person with a presumed disability may in fact be able to return to work.
Social Security Rider
A disability income policy amendment to provide additional disability income benefits payable when an individual is disabled but does not qualify for Social Security disability benefits
