Disability Income And Related Insurance

Question 1

What is disability income ins ?

Answer 1

Replace lost income
Percentage of income to incentivize return of work
Sickness or Injury Only

Question 2

What is meant by Own Occupation?

Answer 2

24 months after loss
Unable to perform any duties of their own occupation

Question 3

Any Occupation

Answer 3

Cant perform any duties anywhere

Question 4

Partial disability meaning, covers what

Answer 4

50% of total
Covers when insured can do some but not all old duties

Question 5

Residual Disability Benefits is what ?

Answer 5

When an insured comes back to work after TOTAL Dis and can’t perform normal duties.
To what was earned before

Question 6

Presumptive Disability qualifications ?

Answer 6

Conditions for qualification of benefits
Dimemberment
Boundless
Loss of speech or hearing

Question 7

Recurrent Disability is what ?

Answer 7

Reoccurring injury or illness treated as continuous 3-6 months
No elimination period

Question 8

Permanent Disability is what ?

Answer 8

After reaching maximum medical improvement

Question 9

Individual Disability Income applied by who? Taxable?

Answer 9

Individuals not employer
After Tax Dollars
Benefits: NOT INCOME TAXABLE
own money can’t be taxed twice

Question 10

Elimination Period (waiting period) purpose?

Answer 10

Time Deductible
Eliminate coverage for short term disabilities
30- 365 Days

Question 11

Longer elimination period means what about premiums?

Answer 11

Lower premium

Question 12

What is a benefit period ?

Answer 12

Time monthly disability pay will last
1 , 2 , 5 Years
Until 65 maybe

Question 13

Probation period is what ?

Answer 13

Time before your policy is in effect 10-30 Days
Reduce adverse selection

Question 14

What is the Hospital Confinement Benefit?

Answer 14

Supplemental income benefits when in a hospital

Question 15

Guaranteed Insurance Rider does what ?

Answer 15

Increase of benefit amount without proof of insurability

Question 16

Principle Sum

Answer 16

Face amount

Question 17

Capital Sum

Answer 17

Percentage of Principle paid for half dismemberment

Question 18

Disability premiums paid by an employee are NOT TAXABLE

Answer 18

NOT TAXABLE

Question 19

Disability benefits paid by employer ARE TAXABLE

Answer 19

ARE TAXABLE

Question 20

Disability Income Insurance premium is deducible to the employer

Answer 20

Disability Income Insurance premium is deducible to the employer

Question 21

Group plan benefit max based on what ?

Answer 21

Percentage of workers income

Question 22

Individual disability policies max benefits based on what ?

Answer 22

Flat rate

Question 23

Own occupation v Any occupation
Who’s benefit is better?

Answer 23

O: focused only on your job
If disabled and can’t do your own job: benefits DOCTORS
A: focused on any job you are able to perform
Own provides better benefit

Question 24

Short term group v individual benefit period ?

Answer 24

Group: 13 -52 wks
Individual: 6 months - 2 years

Not renewable

Question 25

Group long term max benefit period?

Answer 25

More than 2 years

Question 26

Group Short Term Disability STD for who? elimination period? Benefit period range?

Answer 26

Company employees Could be zero, 6 months, 1 years, 2 years

Question 27

Group Long term disability used for who? Benefit period ?

Answer 27

Management employees Age 65

Question 28

What is business disability insurance?

Answer 28

Protection from loss of key employees

Question 29

What is a disability buy- sell agreement ?

Answer 29

Legal agreement by attorney For when one or more owners die Lump Sum

Question 30

What is Old Age Survivors Disability Insurance?

Answer 30

Social Security

Question 31

What does Fully insured mean? What are the benefits?

Answer 31

Has earned 40 Quarters (10 years) SS Retirement Premium freed Medicare A Survivor benefits

Question 32

Currently Insured means? (Partially)

Answer 32

Earned 6 credits during 13 quarter period ending w the quarter the insured: Dies Disabled Or old age

Question 33

If an individual is entitled to premium free Medicare A…

Answer 33

Automatically eligible for B Must pay monthly premium

Question 34

Waiting period for Social Security?

Answer 34

5 Months

Question 35

BOE Bus overhead expenses policy explained ?

Answer 35

SPPTEN Small business Period of total disability Premiums are tax deductible Taxable Equip expenses NO Salaries n profits

Question 36

What is the additional monthly benefit rider ?

Answer 36

Insurer will pay benefits for a year