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14 Cards in this Set
- Front
- Back
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Short Term Disability Income Policy
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1 .They are not payable for accidents covered by Workers' Compensation
2.Any benefits payable to employees are taxable. 3.Coverage is usually non-occupational since the employer also carries Workers' Compensation as required by state law. |
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Seth Brown is covered by a non-contributory group disability income policy and becomes eligible for $2,000 a month in benefits. Which of the following is true:
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1. A 100% of the premium is tax deductible by the employer, and 100% of the benefits are taxable to Seth
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Seth Brown is covered by group Medical Expanse and becomes eligible for $2,000 a month in benefits. Which of the following is true:
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The premium is fully tax deductible to the employer, and the benefits are not taxable to Seth
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The typical definition of “total disability” on a disability income policy states you are totally disabled if you cannot perform Any of your own job for the first how many years.
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2 years
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Disability Income policy
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cover loss of net earned income due to his inability to work.
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Elimination Period
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1.The period of time between the onset of a claim and the start of disability income benefits
2.The waiting or elimination period is a number of days the insured has to wait until they become eligible for benefits once they become disabled. It is sometimes referred to as a time deductible. The shorter it is the higher the premium for coverage will be. |
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optional Change of Occupation Provision in a Disability Income policy
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It sets forth the rights and obligations of the insurance company and the insured in the event the insured engages in a more-hazardous or less-hazardous occupation
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To qualify as disabled under the provisions of Social Security, your disability must be expected to last at least
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12 month
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Change of Occupation provision
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The Change of Occupation provision works much like the Misstatement of Age provision. If you do not tell the insurance company you changed occupations and have a claim at a higher risk occupation the insurer will adjust benefits to what you were paying in premium would have purchased you at the higher risk. They will not void the policy.
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eligibility for Social Security disability income benefits
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1. Attaining age 65 is not a requirement for Social Security disability income coverage.
2.you must be under age 65 in order to receive disability income benefits. 3. fully insured status. 4.Your disability must be expected to last at least 12 months, or end in your death. 5.You must also be unable to perform any gainful work (any job). 6. five months of waiting period |
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Key Employee Disability Income insurance,
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1. Benefits are paid to the business to train a new person
2. Premiums are not tax deductible 3. Benefits is not taxable as income to the business 4. This is a form of third party ownership |
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There are only 2 disability income policies that have tax deductible premiums and taxable benefits
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group disability income and business overhead.
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The Insuring Clause
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The section of a health policy that states the causes of eligible loss under which an insured is assumed to be disabled
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‘partial disability’
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The ability to go back to work part time and earn some income
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