Module 4 welfare, benefits, life and disability plans

Question 1

In regard to disability insurance, what’s the definition of disability under the Americans with disabilities act?

Answer 1

A person is disabled when they meet one to three criteria listed

Has a physical or mental impairment that substantially limits one or more life activities

Has a record of such impairment

Is regarded as having such impairment

Question 2

Regarding disability insurance, what is medical functional disability?

Answer 2

Condition impairs a persons capacity to function at a prescribed level

Limited from performing the material and substantial duties of his regular occupation, because of sickness or injury

The person has a 20% or more Loss of her indexed earnings because of the same sickness injury

Question 3

Regarding disability insurance, how was disability defined by the Social Security act of 1935

Answer 3

An inability to engage in substantial gainful activity by reason of a physical or mental impairment. The impairment must be medically determinable, and expected last for not less than 12 months or to result in death.

Question 4

Why do employers often choose to offer disability plans to their employees?

Answer 4

Employers offered disability plans, because of their relatively low cost and high value to employees

Question 5

In regard to short-term disability insurance structure, how long can a participant receive disability pay

Answer 5

Usually no more than six months, and then may transition to a long-term disability, if available