Module 10 Flashcards
(39 cards)
This depends on your insurance policy. It can be not being able to work in “your occupation” for 2 years or not being able to work in “any occupation”.
The definition of disability
Social Security in the U.S., which is a comprehensive federal benefits program that provides benefits to retirees, disabled people, and their survivors.
Old-Age, Survivors, and Disability Insurance (OASDI)
This is also known as the waiting period for private long-term disability insurance. It typically is 6 months but can be up to a year.
The elimination period (in disability insurance):
The amount of time for which an individual can receive disability benefits.
The benefit period (in disability insurance)
A rider that increases disability payments over time based on a measure of an increasing cost of living.
Cost of living adjustments (COLAs)
Provisions that offset the carrier’s disability payment if the participant receives disability-based income support from another source such as SSDI, workers’ comp, pension benefits, etc.
Benefit offset provisions in disability insurance
A policy designed to provide income replacement when a disabling impairment precludes work for a limited time.
Short-term disability
California, Hawaii, New Jersey, New York, Rhode Island, the U.S. Territory of the Commonwealth of Puerto Rico, and the railroad industry.
Non-federal government entities with temporary disability insurance (TDI)
Due to illness or accidental injury, you are not able to perform the material and substantial duties of your regular occupation for wage or profit.
“Own occupation” definition of disability
Disability exists when you are incapable of performing any job for which you are reasonably qualified based on your education, training, or experience
“Any occupation” definition of disability
A policy that can be continued if one leaves their employer. Group disability policies aren’t portable.
Portability
These programs help reintegrate those who were out on disability leave back into the workplace.
Return-to-work programs
This pays for time, medical care, and survivor benefits for work-related incidents.
Workers’ Compensation
This is the most common disability payment.
Temporary Total Disability
Workers return to work gradually with reduced responsibilities and lower salaries. This coverage makes up some of the difference in wages.
Temporary Partial Disability
The worker has permanent impairments that, although partial, limit the worker’s ability to work.
Permanent Partial Disability
Eligible employees of covered employers are entitled to take unpaid, job-protected leave for specified family and medical reasons.
Family and Medical Leave Act (FMLA)
An informal program that allows employers to manage short-term absences not covered by Workers’ Compensation.
Salary continuation program
Employers must annually estimate the accrued liability for benefits (such as a self-funded short-term disability program), reserve funds for it, and report it in annual financial statements.
FAS 112 requirements
When employees aren’t subject to proof of good health, these provisions limit/exclude benefits for a period of time to minimize adverse selection in voluntary plans.
Preexisting condition exclusion
Employers fund this benefit. They pay the premium and consider it a business expense.
Funding of workers’ compensation benefits
There is a 5-month waiting period. Social Security will pay starting the sixth full month after disability began.
Social Security Disability Insurance waiting period
A rider that assures the policyholder of the right to renew the policy. An insurer can still increase premiums by class.
Guaranteed renewable
This allows a disabled claimant to return to work part-time and receive a partial disability payment if continuing to be partially disabled.
Residual or partial disability rider
