A benefit paid to the insured upon being deemed partially or totally disabled. This benefit may be paid out from a disability policy or a clause of a life insurance policy.
Insurance Encyclopedia
Disability benefits
1. Payments for loss of income to an insured who is not able to work because of total and/or permanent disability for a covered injury or illness. Also called disability compensation . 2. Optional feature to a life insurance policy that provides for a waiver of premium and in some policies payment of monthly income if proof can be furnished that the insured has become totally and permanently disabled. 3. For Social Security disability, benefits are payable to people under full retirement age who have enough Social Security credits and who have a severe medical impairment (physical or mental) that is expected to prevent them from doing substantial work for a year or more or who have a condition that is expected to result in death.
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UK: Benefits added to life or income protection policies. They may include waiver of premium during periods of disability preventing the policyholder from following his normal occupation. The term has also been applied when periodic payments following temporary disablement from working are added to a life policy.
Disability benefits law (Health Insurance)
A law currently in effect in some states, including California, New York, Hawaii, and Rhode Island. The law mandates disability benefits be paid to workers by the employer for injuries that take place outside the workplace.
Disability buy sell (Health Insurance)
A type of income policy that funds a disability buy sell agreement to buy the interests of a disabled stockholder. See buy sell agreement .
Disability buy-out insurance
Type of disability insurance that gives funds to a business or professional partnership so that the business interest of a totally disabled partner may be bought if the disability is long term or permanent.
Disability compensation
See: disability benefits .
Disability Determination Services (DDS)
A state Social Security division office that assesses a case for disability benefits.
Disability Discrimination Act 1995 DDA
aims to end discrimination against disabled persons in regard to: access to goods, services and facilities; buying or renting property; employment. It is unlawful to treat the disabled less favourably than others and it is now necessary to make reasonable adjustments in the way services are provided. From 2004, service providers will have to consider adjusting the physical features of their premises where they disadvantage the disabled using the service. The law applies to employers with 15 or more employees and to service providers. Discrimination is a source of claims under employment practices liability insurance. See DISABILITY 1.
Disability income benefits
Payments for loss of income under a group life (permanent and total disability income), short-term disability income, or long-term disability income insurance contract.
Disability Income Insurance
US: A form of health insurance that provides periodic payments to replace income when an insured person is unable to work as a result of illness, injury, or disease.
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Health and Personal Accident Insurance that provides periodic payments if the insured becomes disables as a result of illness or accident.
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MEDICAL,USA: Type of insurance that provides monthly payments to replace income when the insured is unable to work as a result of illness, injury, or disease—not as a result of a work-related accident or condition. Sometimes called loss of time insurance, nonoccupational insurance , or disability insurance .