C.20 Disability income insurance (individual and group) Flashcards
Learners will be able to identify and differentiate between the key features, benefits, and limitations of individual and group disability income insurance policies. (10 cards)
A policy that provides benefits if the insured is unable to perform the duties of their specific occupation, even if they can work in another job.
Own-Occupation Disability Insurance
A policy that provides benefits only if the insured is unable to work in any occupation for which they are reasonably suited by education, training, or experience.
Any-Occupation Disability Insurance
The waiting period between the onset of disability and the time when benefit payments begin, typically ranging from 30 to 180 days.
Elimination Period
The length of time disability benefits are paid, which may be short-term (weeks to months) or long-term (years or until retirement age).
Benefit Period
A provision that pays partial benefits if the insured can work but has lost a portion of their income due to disability.
Residual Disability Benefit
A policy that provides temporary income replacement, typically for disabilities lasting less than one year.
Short-Term Disability Insurance
A policy that provides income replacement for extended disabilities, often lasting years or until retirement.
Long-Term Disability Insurance
Employer-sponsored disability coverage that provides income protection to employees, often with lower premiums than individual policies.
Group Disability Insurance
A disability insurance policy that guarantees the insurer cannot cancel or change premiums as long as premiums are paid on time.
Non-Cancelable Policy
A policy that ensures the insured can renew coverage without losing benefits, though the insurer may increase premiums for all policyholders in the same risk class.
Guaranteed Renewable Policy
