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Disability Income
TN Accident & Health (Disability Income)
| Term | Definition |
|---|---|
| Disability Income Insurance | Provides periodic income payments if the insured becomes disabled during the period of the policy's coverage. (No DI policy will be more than the insured's earnings.) |
| Non-Occupational Disabilities | Disabilities that happen outside of work. |
| Occupational Disabilities | Disabilities that happen at work. (workers comp) |
| Flat Amount Approach | More common with Individual Policies |
| Percent-Of-Earnings Approach | More common with Group Policies |
| Own Occupation & Any Occupation | Two basic definitions of total disability |
| Own Occupation | Policy benefits are payable if the insured cannot perform the duties of his or her OWN occupation due to injury or sickness. (PROFESSIONAL & WHITE-COLLAR EMPLOYEES) |
| Any Occupation | Requires that the insured be unable to engage in ANY occupation for pay or profit for which he or she is reasonably suited through education, training, or experience. (BLUE-COLLAR WORKERS) |
| Presumptive Total Disability | The insured automatically qualifies for the policy's full benefit if he or she suffers a specified loss that, by definition, is deemed TOTAL and PERMANENTLY disabling. |
| Total & Permanent Disabilities (Examples) | 1. Quadriplegia & Paraplegia 2. Loss of Eyesight 3. Loss of Speech 4. Loss of any 2 limbs |
| Partial Disability (Recovery Benefit) | Continues benefit payments at a "REDUCED" level, to insureds that have been on total disability and are returning to work on a "PARTIAL DISABILITY" benefit. |
| Credit Disability Insurance | Covers the risk of the CREDITOR becoming disabled and unable to pay off a LOAN. The policy is written so that its benefit period is the same as the loan period. |
| Recurrent Disability Provision | After returning to work from total disability, if the insured has a related disability RELAPSE before they have been at work 6 months. |
| Rehabilitation Provision (Return-To-Work-Provision) | The insurers pay for OCCUPATIONAL THERAPY, training, or modifications to the insured's workplace to assist him or her in RETURNING TO WORK. |
| Rider | An ATTACHMENT to an insurance contract that ALTERS its terms in some way. |
| Cost-Of-Living Adjustment (COLA) Rider | ADJUSTS the benefit payments according to changes in the consumer price index. (i.e. COST OF LIVING and INFLATION) |
| Social Insurance Supplement Rider | Provides an additional monthly benefit before "SOCIAL INSURANCE" program benefits begin. (i.e. Social Security & Workers Comp) |
| Future Increase Option Rider (Guaranteed Insurability Rider) | Allows the insured to buy extra coverage under the policy without proving evidence of insurability. (It appeals to those who expect their earnings will INCREASE.) |
| Return of Premium (Refund) Rider | Enables the insured to "GET BACK" part of their premium payment if they have no DI claims against the policy. Also if the insured's claims are below a certain level, they can "GET BACK" part of the of the premium. |
| Group Disability Income Insurance | Under a "GROUP" policy, the "GROUP" is underwritten as a WHOLE. The sponsor is the policy owner. The individual employees or "GROUP MEMBERS" are the insureds. Common thru JOBS. Not portable. |
| Short Term Disability | Group plans with maximum benefit periods of LESS than 2 years is... |
| Long Term Disability | Maximum benefit periods of 2 years or MORE is... |
| Business Overhead Insurance | Provides funds to pay OPERATING EXPENSES (keep things running) of a "BUSINESS" when the insured owner is totally disabled. |
| Key Employee Disability Insurance | Pays a monthly benefit to a business to cover additional help and pay a "KEY" person while disabled. (The business is the policy owner and if the insured becomes disabled, the benefits are paid to the business.) |
| Business Disability Buy-Out Policy | Provides the funds necessary to "BUY OUT" the owner's interest in the business. |
| Residual Disability | Pays the insured for loss of earnings AFTER returning to work if the insured is unable to earn as much as BEFORE the total disability. |
| Temporary Disability | Refers to a disability where the insured is expected to RECOVER. |
| Permanent Disability | Would cause the insured to be unable to work for the REST OF THEIR LIFE. |
| Total Disability | Inability to perform ANY of the duties of your occupation you are qualified to perform by education or training. |
| Disability Reducing Term Insurance | Cover any outstanding loans the business might have if and when the business owner becomes disabled. |
| Social Security | Formerly known as OASDI (Old Age, Survivors, and Disability Income) provides benefits for retirement, death, and disability to eligible people and their families. |
| Fully Insured | Coverage for Social Security disability benefits requires that a worker be.... |
| 40 Credits/10 years of work | For most people, Social Security fully insured status requires... (Does not have to be consecutive) |
| Partial Disability | Social Security does not pay benefits for... |
| 5 Months | How long must a totally disabled worker wait before Social Security benefits become payable? |
| MONTHLY | How often are disability and retirement benefits paid? |
Created by:
Tiphanie_Dyme
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