Disability Insurance Flashcards
Disability Income Insurance simply put is?
Income replacement protection.
What is disability income insurance?
Health insurance, provides periodic payments when insured is unable to work as the result of illness, disease or injury.
Disability Insurance helps protect against loss of earned income such as?
Gross salary, wages, and net income of self-employed individuals.
Types of individual disability contracts:
Cancellable(commercial), guaranteed renewable, non-cancellable and guaranteed renewable.
What are the three pillars of plans?
Government, individual, group.
Government disability plans include?
CPP, QPP, EI, and workers compensation.
Individual plans offer?
More extensive protection but higher cost to insured.
Group plans offer?
Very limited protection but at lower cost than individual.
Disability insurance is typically…
70% when not stipulated in question.
Factors in establishing benefits and the premium cost for those benefits in a income insurance policy are:
Elimination or waiting period, occupation class, definition of disability, level of income benefit, guaranteed renewability, and benefit period.
Elimination period is also called?
Waiting or qualification period.
What is the elimination period?
Period of self insurance at the beginning of a disability. Common periods are 14 day, 30 days, 60 days, 90 days, 120 days, 180 days, 360 days, and 720 days. Most common 90 days.
The longer the elimination period…
The lower the disability insurance premium.
What are the different occupational classes?
5a, 4a, 3a, 2a, and a.
Occupational class 5a is?
Most prestigious professionals, highly educated. Doctors, lawyers, etc.
