Common Terms Related to Disability Insurance
| Term | Definition |
|---|---|
| Benefit Period | How long benefits are accessible to be paid – often to age 65 |
| Cost of Living Adjustment (COLA) | A rider that increases your benefit each year during a long claim to keep up with inflation |
| Decline | An underwriting decision where the insurer refuses to offer coverage |
| Disability Insurance | Income protection that pays you monthly if an illness or personal injury prevents you from working |
| Earned Income | Money derived from active employment only – gross salary, wages, fees, etc. Income from investments or other avenues is not included |
| Elimination Period | The waiting period before benefits begin, usually 90 days for physicians |
| Exclusion Rider | A clause that removes coverage for a specific condition or body part |
| Financial Underwriting | Verification of your income to determine how much coverage you qualify for |
| Future Increase Option (FIO) | A rider that allows you to increase coverage later without new medical underwriting |
| Graded Premium | A premium structure that starts out low and increases each year |
| Guaranteed Renewable | Policy benefit where you're able to renew your policy after it expires, at current rates, as long as you're gainfully employed, full-time, at least 10 months out of the year |
| Guaranteed Standard Issue (GSI) | Disability insurance available through certain residency/fellowship programs where no medical underwriting is required for eligibility |
| Level Premium | A premium that remains the same each year through the life of the policy |
| Medical Underwriting | The health questions, exams, or medical records required to qualify for coverage and determine pricing |
| Monthly Benefit | Amount you receive each month if you become disabled |
| Non-Cancellable | Policy benefit where your policy cannot be cancelled, nor can premiums be increased or policy provisions changed until the policy expires |
| Own-Occupation / True Own-Occupation | Terminology that speaks directly to physicians – pays benefits if you can't perform your medical specialty, even if you're able to work another job |
| Preexisting Condition | A health issue you had before applying. It can affect your eligibility for coverage or may lead to exclusions |
| Premium | The cost of an insurance policy, usually paid monthly |
| Rider | Optional add-ons that enhance disability insurance coverage |
| Student Loan Protection Rider | A rider that pays extra benefits specifically to cover student loan payments during disability |
| Total Disability | The inability to perform the major duties of one's occupation because of sickness or injury |
| Unemployment Premium Suspension | Policy benefit where you can stop making premium payments for up to 12 months, if unemployed, without your policy being cancelled – you won't have coverage during this time however |
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