Lesson 14 Review
In order to qualify for disability benefits, the individual must be at least 20% disabled.
Most group policies use the percentage method to calculate the amount of the disabled worker's earnings prior to the accident. The normal amount of income that can be replaced by a long-term disability policy is 60%.
Presumptive disability includes:
- blindness;
- deafness; or
- loss of two or more limbs.
acc - The insured must be unable to perform any job for which he or she is "reasonably suited by reason of education, training, or experience."
occ - In order to receive disability income benefits, the insured must be unable to work at his or her own occupation.
The reason for the probationary period is to protect the insurer from preexisting illnesses during the policy's initial timeframe. This is a one-time only period that lasts usually between 15 and 30 days.
The elimination period refers to the time immediately following the accident when benefits are not yet payable. A person pays out of pocket for short-term disabilities, which in return helps keep premiums lower.
The benefit period refers to the length of time benefits can be payable to a disabled insured.
The delayed disability provision allows a specified time period after an accident that if an injury manifests from that accident, the insurer will cover it.
The recurrent disability provision states a time period for which the disabled may need additional coverage and may receive it without having to wait for the elimination period to lapse.
The Social Security rider provides extra income when social insurance benefits (Social Security, workers' compensation, or state and local government programs) are not being received by the insured or if the benefits are being received in an amount less than estimated and expected in the rider.
The COLA rider is geared toward adjusting the benefit according to an individual's current living conditions, after disability benefits have begun.
Disability policies are usually noncancelable.
The information contained in Unit 18 of the Florida study manual has been presented in Lesson 14 of the online course.
