Disability Income Flashcards
What is the most common type of disability income?
guaranteed renewable policy; adjusts premium on annual basis and covers NONoccupational illness/injury
How often do you get disability income?
monthly
The highest premium under the disability income policy is ___ day waiting period with a ___ year benefit period.
14; 10
2 methods use to determine amount benefits payable:
percent-of-earnings and flat amount method
percent-of-earnings approach
determines benefits using a percentage of person’s pre-disability earnings and considers other sources of disability income
flat amount approach
a flat income amount will be paid in the case of a disability, and if the insured dies the remaining unpaid benefits will go to the insured’s estate
Group disability amounts are typically limited to
60% of insured’s income
the definition of TOTAL disability considers
the persons education, training, and experience
presumptive disability
certain conditions that automatically qualify you for disability, ie.e blindess, loss of limbs, etc. which then waives the requirements for disability benefits
residual amount benefit
A PERCENTAGE OF THE TOTAL DISABILITY BENEFIT for when the insured is working, but unable to perform all duties; percentage is based on the percentage of incomed lost due to disability
rehabilitation benefit
vocational training for new job of disability impairs you to no longer work functionally at original occupation;
probationary period
period of time that must elapse from the policy issue date; usually 15-30 days after issue of policy
waiting/elimination period
period of time between disability and receiving benefits; longer wait=lower premiums
benefit period
how long you receive benefits; longer benefits=higher cost of poicy; short term=6months-2 years; long term=more than 2 years
delayed disability
when effects of total disability does not show until later, benefits usually paid 90 days or less after disability
