Benefit Percentage - Benefit payable is usually determined as a percentage of the insured's pre-disability income up to an overall maximum benefit amount.
Definition of Total Disability - most important provision in a disability contract is the definition of disability that will be used to determine an employee's eligibility for benefits.
Elimination Period - The period of time between the date the disability commences and the beginning of the benefit payment period. It is the period during which an employee must be disabled before payment of benefits begins
Exclusions - Specific provisions included in group disability plans which exclude coverage in certain situations. Typically, a plan will not pay benefits for disabilities arising from war, participation in a riot, commission of a felony, or self-inflicted injury.
Maximum Benefit Period - The maximum length of time for which benefits are payable under the plan as long as the employee remains continuously disabled.
Maximum Monthly Benefit - The highest dollar amount a disabled employee can receive on a monthly basis under the LTD plan.
Minimum Monthly Benefit - The minimum amount paid as a monthly benefit after reductions for Other Income Benefits.
Other Income Benefits (Benefit Integration) - While disabled, an insured may be eligible for benefits from other sources. Benefits payable under the group LTD plan may be offset (reduced) by other sources of disability income such as Social Security, workers compensation, or disability benefits received from other employer-sponsored plans.
Waiting Period - In order to become eligible for coverage under the policy, an individual must satisfy a certain number of continuous days of service as an active, full-time employee. This is known as the waiting period. (In addition, a waiting period can also be the time period between when a disability occurs and when payments from the disability insurance policy begin — what we have discussed as an "elimination period.")