Chapter 14- Disability Income Flashcards
a period of time in which the insured must wait, before coverage is available for sickness
Probationary period
period of time in which the insured must wait, before coverage is available for sickness or accidents; deductible of time
Elimination period
established by a period of time in between disabilities where the insured may not be subject to a new elimination period
Recurrent disability
inability to perform the duties of the insured’s occupation
Own Occupation
inability to perform the duties of any occupation for which the insured has had past experience, training or education
Any occupation
disability so serious the insurer is not going to challenge the status
Presumptive disability
the inability to perform every duty of one’s occupation, but the ability to perform one or more important duties of the occupation
Partial disability
recompenses a proportion of benefit based on the proportion that the insured is able to earn
Residual disability
typically an insured will limit the amount of protection to ________%
66 2/3 or 75%
waives the premium in the event of disability usually with a waiting period of 30,60 or 90 days
Waiver of premium
pay the overhead expense to keep the business operating when the business owner is disabled
Business overhead policy
designed to protect the business in the event a key employee is disabled; premium is deducted as a business expense and the benefit is tax free
Key Employee Disability Policy
designed to fund the purchase of an owners share of the business if they become disabled; it provides the funds to the other owners to purchase the disabled owner’s share; typically a long elimination period to avoid premature buy out
Disability buy sell arrangement
