Notes

-Residual disability is when the insured has a total disability, but is allowed to return to work part time.
-Disability pays in the event of a qualifying disability, not a specific illness or accident. The disability may be caused by sickness or accident, but the insured must also meet the qualification for disability benefits.
-Disability rates are calculated using morbidity tables which predict the frequency and length of claims.
A business overhead expense policy is used to pay business expenses such as rent, utility bills and employee salaries. A business overhead expense policy will never cover the owner's salary.
-Not all states require the employer to have Workers' Compensation insurance, but they all have laws concerning Workers' Compensation. Not having Workers' Compensation insurance does not relieve the employer of liability for on the job injuries.
-Social Security disability benefits are paid after a five-month waiting period. The disability must be total and expect to last twelve months. Being eligible for Medicare is not one of the criteria. In fact, Social Security disability benefits become retirement benefits when a person reaches age 65.
-The agent should explain that the policy will have a probationary period. The purpose of the probationary period is to prevent the insurer from buying a claim.
-To qualify for Social Security disability, Bernie must have total and permanent disability and not be able to work. He must also earn the necessary number of quarters of coverage, and the disability must be expected to last 12 months or more. The waiting period for Social Security disability benefits is 5 months, or 150 days.