Lesson 7 Disability Income Insurance Flashcards
To qualify for disability benefits the individual must be ___% disabled
20
Most group policies use the percentage method to calculate the amount of the disabled’s earnings prior to the accident
The normal amount of income that can be replaced by a long term disability policy is 60%
Presumptive Disability Benefit
Disability income policy benefit that provides if an insured experiences a specified disability such as blindness , he or she is presumed to be totally disabled and entitled to full amount payable under the policy. whether or not he or she is able to work
Presumptive Disability includes
- blindness
- deafness
- loss of 2 or more limbs
“ACC”
A definition of total disability that requires that for disability income benefits to be payable, the insured must be unable to perform any job for which he or she is reasonably suited by reason of education, training, or experience.
“OCC”
A definition of total disability that requires that in order to receive disability income benefits, insured must be unable to work at his own occupation.
Probationary Period
of days after an insurance policy is issued which coverage is not afforded for sickness. Standard practice for group coverages.
protects insurer from preexisting illnesses. 1 time only period that usually last from 15-30 days
Elimination Period
duration of time between beginning of disability and the commencement of period for which benefits are payable
time immediately following accident when benefits are not yet payable. A person pays out of pocket for short term disabilities which keeps premiums lower.
Benefit Period
refers to length of time benefits can be payable to a disabled insured
Delayed Disability Provision
allows for a time period after the accident that if an injury manifests from that accident , the insurer will cover it
Recurrent Disability Provision
time period for which disabled may need additional coverage and may receive it without having to wait for the elimination period to lapse.
Social Security Rider
provides extra income when SS benefits are not being received by the insured or if the benefits are less than estimated and expected in the rider
COLA Rider
Cost of Living Adjustment Rider
provides for automatic increase in benefits (typically tied to CPI) offsetting the effects of inflation
geared toward adjusting benefit according to individuals current living conditions after disability benefits have begun.
True of False:
Disability policies are usually non cancelable
TRUE
Guaranteed Insurability Rider
agreement where additional insurance may be purchased at various times without evidence of insurability.
