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Pure Loss of Income (Income Replacement) Policy

Pure Loss of Income (Income Replacement) Policy - under this policy, the
insured will receive benefits if he/she loses income due to a covered accident or
sickness, even if the insured is working full-time doing all the same duties he/she
did before.

Elimination Period (Sickness versus Injury

may be up to 6 months

Partial Disability

disability resulting in an inability to perform 1 or more of
the regular duties of an occupation. The benefit usually pays up to 50% of a total
disability benefit for 3 to 6 months.

Residual Disability

provides benefits for loss of income after the insured
returns to work usually following a total disability. Benefits are based on the
reduction of earnings as a result of the disability

Recurrent Disability

when a second disability is suffered due to the same
cause within a set period of time (usually 6 months), the elimination period may
not apply the second time.

Presumptive Disability

loss is presumed to be total and permanent due to the
loss of sight, hearing, speech, or the loss of 2 limbs

Temporary Disability

when an insured continues to work at a reduced
efficiency or is unable to work at all for a period of time, but is expected to fully
recover, such as broken limbs, surgery, etc

Disability Reducing Term

is designed to help a business that has long-term
commitments requiring monthly or other regular payments meet their obligations
in the event the owner or a key employee were to be totally disabled.

Cost Of Living Rider

automatically increases monthly benefits after the onset
of a disability, as the Consumer Price Index (CPI) increases

Impairment Rider

eliminates coverage for preexisting conditions, such as
back injuries. Attaching this rider excludes coverage for a condition that would
otherwise be covered

Life Time Benefit Rider

extends the benefits for life if total disability begins
before a specified age

Non-Disability Injury Rider

does not pay disability income, but pays
the medical expenses that are related to an injury that does not result in total

Hospital Confinement Rider

waives the elimination period if insured is
hospitalized during the period of elimination and only pays when being treated as
an inpatient

Social Insurance Supplement (SIS) Rider

pays in addition to regular
disability policies until Workers' Compensation or Social Security payments
begin. If either benefit stops, the SIS will pay benefits

Definition of Disability

to collect Social Security disability benefits, an
employee must be unable to engage in any kind of gainful employment due to a
medically determined physical or mental condition that has lasted or is expected
to last at least 12 months or result in an early death.

Waiting Period

(5 months) In general, benefits start with the 6th full calendar
month of disability and are not retroactive to the date of disablement

Disability Income Benefits

When an employee age 31 or older has been credited with at least 20 of the
40 quarters required, under Social Security, the employee is considered fully

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