Are disability insurance policies available that do not express the eligibility for disability benefits in terms of an “occupational” definition?
Some insurers market disability insurance policies that define disability not in terms of a particular occupation, but rather simply in terms of the amount of income actually lost. Under these contracts, if an insurable event occurs such as an accident or illness, then disability benefits are payable to the extent that the insured suffers a loss of income that exceeds a threshold amount, e.g., a loss of 20 percent or more of the individual’s earnings prior to the happening of the insured event. When the threshold amount is exceeded, the policy pays a benefit that is based on the percentage of total “prior earnings” lost due to the disability.
Related Questions
- The terms "non-cancelable" and "guaranteed renewable" are often used when referring to disability income insurance policies. What do these terms imply, and how do they differ?
- The terms "noncancelable" and "guaranteed renewable" are often used when referring to disability income insurance policies. What do these terms imply, and how do they differ?
- Are disability insurance policies available that do not express the eligibility for disability benefits in terms of an "occupational" definition?
