Insurance & Employee Benefits
A person can be entitled to disability benefits based on total or partial disability. Total disability is defined as being unable to perform all the duties of his or her occupation due to sickness or injury. The actual length of time that a person is considered disabled based on the “own occupation” definition varies, and some carriers allow up to 24 months from date of sickness or injury. A person may also be entitled to partial disability benefits if they are unable to perform some of the duties of the occupation due to sickness or injury. A partial disability benefit often reduces the benefit after a period of time to provide a return-
Depending on the structure of the plan, and the length of time an employee is employed before employment is terminated, disability benefits may also be portable to the employee. This allows the employee to maintain the benefit even after voluntary or involuntary termination of employment.
There are two types of disability benefits – Long-
Coverage for Short-
Underwriting guidelines also impact the writing of a Short Term Disability. Policies often require a minimum number of employees or a percentage of the eligible employee group, whichever is greater. In addition, minimum premium requirements often apply on disability policies.
Contributed with the permission of Jeffrey Schreiber, ARM
Short and Long Term Disability Insurance
Voluntary disability insurance offers income protection insurance that
partially replaces lost income as a result of a disabling non-
accident or illness. The benefit assists in covering ongoing expenses
during a period when no income is available to pay for them. Some of
these covered expenses include:
Group Disability Insurance