Disability Income Insurance Overview

<p>Business Overhead Expense Policy (B)</p> Signup and view all the answers

<p>Employer funds. (B)</p> Signup and view all the answers

<p>They may offer both short-term and long-term disability options (D)</p> Signup and view all the answers

<p>Insurance policies that cover additional costs excluding Original Medicare. (A)</p> Signup and view all the answers

<p>Accidental Death and Dismemberment (AD&amp;D) Policy (D)</p> Signup and view all the answers

<p>Lower premiums due to risk spreading among individuals. (C)</p> Signup and view all the answers

<p>They provide broad coverage for extensive medical costs (D)</p> Signup and view all the answers

<p>Employees pay the full premium plus fees. (D)</p> Signup and view all the answers

<p>Covers replacement costs for a key employee if they become disabled (D)</p> Signup and view all the answers

<p>To offer a lump-sum benefit or periodic payments for treatments. (B)</p> Signup and view all the answers

<p>Health Maintenance Organization (HMO) (B)</p> Signup and view all the answers

<p>Periodic medical assistance. (B)</p> Signup and view all the answers

<p>Use pre-tax dollars for medical expenses (C)</p> Signup and view all the answers

Provides income replacement if the insured becomes disabled and unable to work. Coverage typically based on a percentage of pre-disability income (e.g., 60-70%). Benefits may be short-term or long-term.

Covers ongoing business expenses if the owner becomes disabled. Expenses covered: rent, utilities, employee salaries (but not owner’s income). Premiums are tax-deductible; benefits are taxable.

Provides funds for business partners to buy out a disabled partner’s share. Benefits typically paid as a lump sum or installment. Helps maintain business continuity.

Offered by employers as part of employee benefits. Typically more affordable than individual policies. Options for short-term and long-term disability. Premiums paid by employers may result in taxable benefits for employees.

Pays a lump sum for accidental death or specific injuries (e.g., loss of limbs, vision). Coverage is often supplemental to other insurance policies. Benefits may be partial (e.g., loss of one limb) or full (e.g., death).

Covers specific medical expenses, such as hospital stays or surgeries. Limited in scope and benefits compared to major medical policies.

Broad coverage for extensive medical costs. Includes high limits, deductibles, and coinsurance. Covers catastrophic events and comprehensive care.

Requires using a network of providers. Primary Care Physician (PCP) referrals required for specialists. Emphasis on preventive care.

High Deductible Health Plans (HDHPs) have lower premiums but require you to pay more out-of-pocket before insurance kicks in. These plans often come with Health Savings Accounts (HSAs).

Health Savings Accounts (HSAs) allow you to save pre-tax money for medical expenses. This money can be used anytime, even in retirement, and any unused funds roll over year-to-year.

Employer-funded accounts that help employees pay medical expenses. Funds can carry over at the employer's discretion.

Medicare Supplement Policies (Medigap) fill gaps in Original Medicare coverage, like copayments, coinsurance, and deductibles. They are standardized plans with labels A through N.

Group insurance policies cover multiple individuals under one contract, typically employees, and often result in lower premiums due to risk spreading.

COBRA allows employees to continue their group health insurance after leaving their job, but they pay the full premium plus administrative fees.

Long-Term Care (LTC) insurance covers individuals needing assistance with daily activities. It requires meeting specific medical or functional criteria and offers various levels of care, from skilled nursing care to custodial care.

Dental insurance covers routine dental care, cleanings, and procedures. It might also include orthodontic and cosmetic options.