Disability Income Insurance Glossary

To help you understand Disability Insurance, we have provided you with a general explanation of some frequently used terms. Note that the exact definitions of these terms can vary from company to company. Always consult your agent for the meaning of the terms applicable to your policy.Accidental Death and Dismemberment

(AD & D)

Policy or provision in a Disability Income policy that pays a specified amount or a multiple of the weekly disability benefit should the insured die, lose his sight, or lose two limbs as the result of an accident. Lesser amount is payable for the loss of one eye, arm, leg, hand, or foot.

Benefit Levels 
Maximum amount a person is entitled to receive for particular services as described in the contract with insurer or health plan.

Cost of Living Benefit
Optional disability benefit where monthly benefit is increased annually once insured is on claim for 12 months.

Disability (disabled)
A condition due to sickness or injury that curtails a person's ability to carry on normal pursuits. A disability may be partial or total, and temporary or permanent as verified by a doctor.

Eligibility Period
(1) Period of time during which potential members of a Group program may enroll without providing evidence of insurability. (2) Period of time under Major Medical policy during which reimbursable expenses may be accrued.

Group Disability Insurance
Coverage provided for a group for loss of compensation due to accident or sickness.

Long-Term Disability Income Insurance
Long-term Disability Income Insurance is designed to provide benefits for a long duration such as 2 years, 5 years, or in some cases up to age 65. The elimination period for this policy is usually 90 or more days.

Permanent and Total Disability
Total disability from which the insured does not recover.

An amendment to an insurance policy that modifies the policy by expanding or restricting its benefits or excluding certain conditions from coverage.

Short Term Disability Insurance
Group or individual policy written to cover disabilities of 13 or 26 weeks duration. However coverage for as long as two years is not uncommon.

Total Disability

Degree of disability from injury or sickness preventing the insured from performing the duties of any occupation for remuneration or profit. Definition in each specific case depends on the wording in the covering policy.

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