A contractual agreement that provides a portion of income if the individual becomes disabled from an injury or sickness on or off the job. Types: short-term, long-term, state or federal programs, group or individual plans.
A type of insurance that provides the policyholder with replacement income when he or she is unable to perform the major duties of his or her regular occupation, or an occupation for which the policyholder is qualified by reason of education, training or experience. ERISA (Employee Retirement Income Security Act of 1974) The federal law that mandates reporting and disclosure requirements for self-insured health plans. It also prohibits states from regulating insurance plans offered by employers to their employees if the employer is self-insured.
Insurance arrangement whereby the member may be paid a benefit in the event of becoming disabled. Different funds have different arrangements which may cover Total & Permanent Disablement (TPD) or temporary disablement, and many give members the option of different levels of cover. Insurance premiums are usually deducted from the member's account. It is most important that members should read the detail of their own fund's insurance arrangements, and decide what options, if any, they wish to exercise.
A form of health insurance that pays the policyholder in place of his or her usual income if the policyholder can't work because of illness or accident. Usually, policies begin paying after a waiting period stipulated in the policy, and pay a certain percentage of the policyholder's usual income. Sometimes this is provided by employers, but it's also available as a separate coverage.
Disability insurance,offers payments to employees who are no longer able to work because of accidents or illnesses. Insurance companies will typically not pay disability claims unless the injured employee is unable to perform any work for the company. Then it will usually pay a portion of the salary the employee was earning before the disablity.
helps to protect employees in case they become disabled. With this coverage, they can be sure to continue to provide for themselves and their loved ones, and continue to meet expenses such as mortgage, car payments, and other fixed costs.