Disability Income Glossary
This disability income insurance glossary provides definitions found in policies, communications and coverage materials. To find a definition, click on the first letter of the corresponding term.
A
No glossary terms available
B
Benefit Period
The maximum length of time benefits will be paid during a covered disability (e.g., two years, five years, 10 years to age 65/67).
Business Overhead Expense (BOE)
A type of disability insurance that reimburses eligible business expenses (like rent, salaries and utilities) if the business owner becomes disabled.
C
Covered Disability
A medical condition (due to sickness or injury) that meets the policy definition of disability and qualifies for benefits.
D
Definition of Disability
Ameritas offers three definitions, including:
- Own Occupation: You’re considered disabled if, due to sickness or injury, you can’t perform the duties of your specific job – even if you’re working in another job.
- Own Occupation and Not Working: You’re disabled if, due to a sickness or injury, you can’t do your job and are not working in another.
- Two-Year Own Occupation and Then Any Reasonable Occupation: Own occupation applies for two years, then switches to any reasonable occupation thereafter.
E
Elimination Period
The waiting period (e.g., 30, 60, 90, 180 days) after a disability begins before benefits start.
F
No glossary terms available
G
Guaranteed Renewable
A policy that the insurer must renew as long as premiums are paid, though premiums may increase by class.
H
No glossary terms available
I
Increase Option
Optional rider that allows you to purchase additional monthly benefit under certain criteria. The criterion of increase varies depending on the type of increase rider selected.
Issue Age
The age range during which a person is eligible to apply for coverage (typically 18–64).
J
No glossary terms available
K
No glossary terms available
L
No glossary terms available
M
Monthly Benefit Amount
The amount paid for each month you are disabled after the elimination period.
N
Noncancelable
A policy that cannot be canceled by the insurer and has guaranteed premiums to a certain age (usually 65).
O
Occupational Classification
A rating system based on your job duties that affects your premium and eligibility.
P
Partial Disability Benefit
Pays a portion of the benefit if you can work part-time or in a limited capacity due to disability.
Presumptive Total Disability
Automatically qualifies you for full benefits if you lose sight, hearing, speech or use of limbs — even if you can still work.
Q
No glossary terms available
R
Residual Disability Benefit
Pays a benefit if you have a loss of income and a loss of time or duties in your occupation due to partial disability, even if you’re working.
Rider
An optional add-on to a policy that provides extra benefits or coverage.
S
Successive Periods of Disability
If a second disability occurs within a certain time after the first, it may be treated as a continuation of the original disability.
T
Total Disability
A condition where you are unable to perform the substantial and material duties of your occupation.
U
No glossary terms available
V
No glossary terms available
W
Waiver of Premium
A built-in benefit that waives your premium payments while you’re receiving disability benefits.
X
No glossary terms available
Y
Your Occupation
The occupation or occupations you are engaged in at the time disability begins.
Z
No glossary terms available