Ch 4 Disability Income and Related Insurance Part II Flashcards
What benefit is based on a primary insurance amount (PIA)?
Social Security disability benefit
What does the amount of disability benefit that an insured can receive depend on?
The insured’s income at the time of policy application
What are the four types of workers compensation benefits?
Medical, income, rehabilitation and death benefits
What type of health insurance would pay for hiring a replacement for an important employee who becomes disabled?
Key person disability insurance
What is the term for a period of time immediately following a disability during which benefits are not payable?
Elimination period
What is the primary purpose of disability income insurance?
To replace income loss due to a disability
How does someone qualify for Social Security disability income benefits?
The insured must have the proper insured status (such as fully insured), meet the definition of disability, and satisfy the waiting period
What type of disabilities will be covered by occupational coverage?
Disabilities that result from accidents or sicknesses that occur on or off the job
What type of health insurance covers partners or corporate officers of a closely held business?
Disability buy-sell
With key person disability insurance, who pays the policy premiums?
The business (employer)
What entity regulates Worker’s Compensation benefits?
State government
What portion, if any, of the individual disability income policy benefits are taxed to the insured?
Disability benefits are not income taxable.
What is another name for old age, survivors, and disability insurance benefits?
OASDI
Social Security
A waiver of premium provision may be included with what type of health insurance policies?
Disability income
What is the primary purpose of disability income insurance?
To replace income lost due to a disability
