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