Disability Income And Related Insurance Flashcards
What is disability income ins ?
Replace lost income
Percentage of income to incentivize return of work
Sickness or Injury Only
What is meant by Own Occupation?
24 months after loss
Unable to perform any duties of their own occupation
Any Occupation
Cant perform any duties anywhere
Partial disability meaning, covers what
50% of total
Covers when insured can do some but not all old duties
Residual Disability Benefits is what ?
When an insured comes back to work after TOTAL Dis and can’t perform normal duties.
To what was earned before
Presumptive Disability qualifications ?
Conditions for qualification of benefits
Dimemberment
Boundless
Loss of speech or hearing
Recurrent Disability is what ?
Reoccurring injury or illness treated as continuous 3-6 months
No elimination period
Permanent Disability is what ?
After reaching maximum medical improvement
Individual Disability Income applied by who? Taxable?
Individuals not employer
After Tax Dollars
Benefits: NOT INCOME TAXABLE
own money can’t be taxed twice
Elimination Period (waiting period) purpose?
Time Deductible
Eliminate coverage for short term disabilities
30- 365 Days
Longer elimination period means what about premiums?
Lower premium
What is a benefit period ?
Time monthly disability pay will last
1 , 2 , 5 Years
Until 65 maybe
Probation period is what ?
Time before your policy is in effect 10-30 Days
Reduce adverse selection
What is the Hospital Confinement Benefit?
Supplemental income benefits when in a hospital
Guaranteed Insurance Rider does what ?
Increase of benefit amount without proof of insurability
Principle Sum
Face amount
Capital Sum
Percentage of Principle paid for half dismemberment
Disability premiums paid by an employee are NOT TAXABLE
NOT TAXABLE
Disability benefits paid by employer ARE TAXABLE
ARE TAXABLE
Disability Income Insurance premium is deducible to the employer
Disability Income Insurance premium is deducible to the employer
Group plan benefit max based on what ?
Percentage of workers income
Individual disability policies max benefits based on what ?
Flat rate
Own occupation v Any occupation
Who’s benefit is better?
O: focused only on your job
If disabled and can’t do your own job: benefits DOCTORS
A: focused on any job you are able to perform
Own provides better benefit
Short term group v individual benefit period ?
Group: 13 -52 wks
Individual: 6 months - 2 years
Not renewable
Group long term max benefit period?
More than 2 years
Group Short Term Disability STD for who?
elimination period? Benefit period range?
Company employees
Could be zero,
6 months, 1 years, 2 years
Group Long term disability used for who? Benefit period ?
Management employees
Age 65
What is business disability insurance?
Protection from loss of key employees
What is a disability buy- sell agreement ?
Legal agreement by attorney
For when one or more owners die
Lump Sum
What is Old Age Survivors Disability Insurance?
Social Security
What does Fully insured mean? What are the benefits?
Has earned 40 Quarters (10 years)
SS Retirement
Premium freed Medicare A
Survivor benefits
Currently Insured means? (Partially)
Earned 6 credits during 13 quarter period ending w the quarter the insured:
Dies
Disabled
Or old age
If an individual is entitled to premium free Medicare A…
Automatically eligible for B
Must pay monthly premium
Waiting period for Social Security?
5 Months
BOE Bus overhead expenses policy explained ?
SPPTEN
Small business
Period of total disability
Premiums are tax deductible
Taxable
Equip expenses
NO Salaries n profits
What is the additional monthly benefit rider ?
Insurer will pay benefits for a year
