Glossary
Total Disability
The definition of “total disability” is one of the most important terms in your policy. This is the definition that you must satisfy in order to receive the full amount of your monthly benefits. Generally speaking, a claimant qualifies as totally disabled if, due to sickness or injury, he or she is unable to perform the substantial and material duties of his or her occupation, is not engaged in any other occupation, and is under the care of a physician for the sickness or injury. However, there is a wide range of “total disability” definitions, so you must check your policy to determine the precise requirements that you must satisfy to qualify for benefits.
Click here for more information about the different types of “total disability” definitions that are used in disability insurance policies.
True Own Occupation Policies
These policies provide the best own occupation coverage because they allow you to collect total disability benefits even if you are working in another occupation, as long as you are unable to perform the material and substantial duties of your prior occupation. Many physicians and dentists believe they have this type of policy, and are surprised to learn that there are several different types of “own occupation” policies that are not “true own occupation” policies.
Click here for more information on the several variations of own occupation policies.
Underwriting Department
The underwriting department determines who an insurance company should sell its promise to. Underwriters review disability insurance applications and assess whether the company should allow applicants to purchase a disability policy, given factors such as the applicant’s medical history, income, and existing coverage.
Click here for more information about the four major functions of an insurance company.
If you file a disability claim and qualify for benefits, most policies require the insurer to waive your premium payments for as long as you are continuously disabled under the terms of your policy. In many cases, the insurance company will also provide a refund of any premiums paid after your established date of disability.
Click here for more information about how waiver of premium provisions work.
