EB Contract Provisions, Definitions, and Benefits

Question 1

Accelerated Life Benefit (ALB)

Answer 1

A provision that allows the insured to receive a portion of their life insurance benefit prior to their death, usually when they are not expected to live more than 12 months.

Question 2

Benefit Duration Regular Occupation (BDRO)

Answer 2

In this definition of disability, a person is considered disabled if they are unable to perform the “material and substantial duties” of their regular job, even if they can perform other jobs.

Question 3

Elimination Period (EP)

Answer 3

The number of days an employee must be unable to work due to a sickness or injury before they can be considered for disability benefits.

Question 4

Guaranteed Issue Amount (GI)

Answer 4

The maximum amount of coverage available to an employee without having to supply Evidence of Insurability (EOI).

Question 5

Guaranteed Increase Benefit (GIB)

Answer 5

A benefit that allows the employee to increase their voluntary term life coverage annually without providing Evidence of Insurability (EOI). The standard is to allow them to increase it by the greater of 10% or $10,000, but other options may be approved.

Question 6

Life Event Benefit (LEB)

Answer 6

A benefit that allows the employee to increase their voluntary term life coverage due to a qualifying life event (marriage, divorce, birth or adoption of a child) without providing Evidence of Insurability (EOI).

Question 7

Maximum Benefit Duration

Answer 7

The maximum amount of time a benefit is payable to an insured person.

Question 8

Statement of Insurability (SOI)

Answer 8

A form that must be completed when Evidence of Insurability (EOI) is required. EOI and SOI are sometimes used interchangeably to describe this form. The form contains questions about a person’s current and previous medical history and health.

Question 9

Social Security Normal Retirement Age (SSNRA)

Answer 9

The age at which a person is eligible for retirement under the Federal Social Security Act. This is sometimes called Social Security Full Retirement Age (SSFRA). Reducing Benefit Duration (RBD) was previously used and may still appear in GAIN.

Question 10

Waiver of Premium (WOP)

Answer 10

A provision that allows the insured to not pay premiums during a period of disability that has lasted for a specific length of time.

Question 11

Waiting Period (WP)

Answer 11

The amount of time a person must be actively at work prior to becoming eligible for coverage. It is typically measured in calendar days, such as 30, 60 or 90, and begins based on the employee’s date of hire.

Question 12

Annual Base Salary (ABS)

Answer 12

A definition of earnings that means the fixed amount of money paid to an employee by their employer in return for work performed. It does not include benefits, commissions, bonuses, tips or any other means of compensation. This may also sometimes be called Basic Annual Earnings (BAE).

Question 13

Employee (EE)

Answer 13

A person employed by a company. For purposes of a group insurance contract, there must be an established employer/employee relationship in order for a person to be eligible for benefits.

Question 14

Evidence of Insurability (EOI)

Answer 14

A review of an applicant’s health and medical history in order to be considered for insurance coverage. This process is used to protect the insurance company against risk.

Question 15

Employer (ER)

Answer 15

The policyholder with whom OneAmerica has entered into an insurance contract.

Question 16

Policyholder (PH)

Answer 16

The employer with whom OneAmerica has entered into an insurance contract.

Question 17

Last Day Worked

Answer 17

The last day an employee was actively and physically at work. This is used in determining things such as when coverage terminates, and in determining eligibility for benefits such as claims, continuation, portability, and conversion.