Disability Flashcards
With Disability: Work can be categorized as ___________________, or ___________________.
One’s own occupation , or any occupation.
Under the Own occupation definition, disability is defined as what ?
An insured’s inability to perform any or all of the duties of their normal occupation.
Under any occupation definition, an insured is disabled if they are unable to perform the duties of what ?
Of any occupation for which they are reasonably qualified by education, training, or experience. ( More difficult to qualify for)
What does income replacement contracts cover?
It pays a benefit if the insured experiences a loss of income as a result of suffering a covered illness or injury.
What is presumptive disability ?
Is a condition that automatically qualifies insureds for disability benefits whether or not they can work.
What conditions does presumptive disability include?
Loss of: two limbs, permanent blindness in both eyes, speech, and total loss of hearing in both ears.
Basic total disability plans: What does disability income cover ?
It pays a monthly amount to make up for lost earnings due to the insured’s inability to work. (indemnity)
How long does the (AMB) Additional Monthly Benefit Rider pay?
It pays an additional benefit during the first 6-12 months.
Does the Social Insurance Supplement pay out when social benefits are being paid out ?
No
Disability insurance: What is the difference between Occupational vs Non-occupational coverage?
Occupational is both job related and non-job related. Non-occupational is only non-job related.
How long does Partial disability last?
Usually no longer than 3-6 months.
When is residual disability benefits paid out?
When the insured is unable to perform some of the duties of his or her occupation and are based on the amount of income lost rather than 50% of the total disability benefit.
What is the Cost of Living Rider (COLA) based on?
The Consumer Price Index
When does a insured have the option of increasing policy benefits under the Future Increase Option (FIO)?
Every 3 Years from ages 25 to 50.
Does an insured need to show evidence of insurability to purchase more benefits under the Future Increase Option (FIO)?
No
