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Insurance Glossary

Find the answers to your insurance questions by clicking on the topic below.

What is....

...an HMO?
...a PPO?
...an HSA?
...Point of Service Insurance?
...a Self-funded plan?
...a Voluntary Benefit plan?

Tell me more about...

...Dental Insurance
...Vision Programs
...Disability Insurance
...401K
...COBRA Administration
...Kidcare
...Employee Assistance Programs

Disability Coverage

Short and Long Term Disability policies are offered to employer groups (individuals may purchase LTD policies only). If an employee/individual is unable to work due to accident or illness, the insurance company pays a percentage of the insured's salary after a specified elimination (waiting) period.

Many employers purchase these policies together, so that the LTD begins when the STD ends. A common STD policy begins first day accident or 8th day sickness and pays 60% (usually tax free) of insured's salary for a period of 13 weeks. A common LTD policy may start 90 days after sickness/illness, pay 60% of salary (usually tax free) and last for a specified number of years or until the age of 65. Insurance carriers continually review claimants to insure that their status meets the definition of disability and that they are unable to perform job functions.

Many people protect their families by purchasing adequate life insurance to help their dependents in the event of their death, but do not consider if they are unable to work. Statistically, the likelihood of disability is far more likely than death and many individuals are not insured for this possibility.

The Benefit Source Inc.
340 W. Butterfield Road - Suite 4B - Elmhurst, IL 60126
800.530.1773 | 630.530.0125 | fax: 630.530.0221
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