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24 Cards in this Set
- Front
- Back
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What are the three common definitions of disability?
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Own occupation; Modified any occupation (aka split definition) inability to engage in any reasonable occupation for which you might be suited by education or experience or to which you could become qualified
Any occupation |
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What is the SS definition of disability?
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mental or physical impairment that prevent any substantial gainful employment. Disability must have lasted for five months (waiting period) and be expected to last for at least 12 months or result in death
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What is the presumptive definition of disability?
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blindness in both eyes, loss of speech or hearing both ears; loss of hands or feet
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What does a residual disability rider pay for?
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If a disabled person returns to work, pays for the difference between current pay and former pay.Reduced income is requoired
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What is a partial disability rider
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Occurs when insured is unable to perform one or more duties of his own occupation but is still able to perform some. Policy will pay partial benefit such as 50%
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What is the social insurance substitute?
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Policy is structured reduces disability benefit by SS benefit Example: policy has SIS for $400 and disability benefit for $1000. SS begins to pay $200. Insurer will pay $1200 to insured. form of integration with SS
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What are the implications of a noncancelable disability insurance policy
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Most expensive but provides greatest security
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What are the implications of a guaranteed renewable disability insurance policy
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Provides a right to renew but insurance co may increase premiums
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How long will a short term disability policy typically provide benefits
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24 months
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How are disability benefits taxed?
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If ER pay premium, benefits taxed as ordinary income to EE.. If EE pays premium, benefit is not taxable. In s corporations, taxable to partner/shareholder. If benefits are taxable, first 6 months are tax free
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How are long term care policies taxed
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If qualified by HIPAA, premiums are deductible, benefits are excluded from income.
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Who is eligibility for long term care?
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The insured must be chronically ill--unable to do usual 2 ADLs (activities of daily living)BED TT chair
bathing, eating, dressing, transferring, going to toilet, continent. Also cognitively impaired |
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What are the typical benefit periods for LTC?
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defined period--defined time
pool of money approach |
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what type of services are covered by long term care policies
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skilled nursing care, custodial care, home health care, assisted living, adjust day care, hospice care
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What are some alternatives to long term care
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a viaticcal settlement with a viatication company, accessing accelerated benefits rider with existing life insurance policy, Medicaid and self funding
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What is key person disability insurance?
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Plan that provides continued income to key EE if disability occurs. ER pays premiums. If ER pays premiums and EE is beneficiary, they are deductible by ER. If ER is beneficiary, they are not deductible. If ER is beneficiary, benefits are tax free to ER, if EE is beneficiary, benefits are taxable to EE
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What are the requriements of a qualified long term care policy
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Contact must be limited to qualified LTC only; Cannot pay for expenses reimbursable under Medicare; Must be guaranteed renewable; May not provide for any surrender value; all refunds must reduce future payments.
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What is partnership long term care insurance?
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Programs that bring together state government and private insurance companies with residents to help citizens purchase less LTC insurance. Insurance cos and state coordination. Benefits=amount of assets you can keep plus 2K (medicad asset protection). Minimum policy benefits must have inflation protection and home care
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What type of disability policy does not contain a renewable provisiion?
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Any policy that does not contain a renewable provision is a single term policy
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What is the SS definition of disability
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Disability should have lasted 5 months and expected to last at least 12 months
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When are disability benefits typically paid
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30 days in arrears
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How is a disability buyout policy treated for taxes
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premiums are not deductible and benefits are tax free
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What are business overhead policies
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usually short term 2-3 years. do not pay owners salary. premiums are deductible by business. premiums. benefits are taxable.
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What are the first two questiona to ask yourself in a COBRA exam queestion
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1)Does person have health insurance b4 event?
2. Does ER have greater or equal to 20 EEs counting partime as .5 FTE |
