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Disability Insurance > Glossary

Glossary

Select a term to define:

Accumulation Period
Association Discounts
Automatic Benefit Enhancement Rider
Benefit Period
Cost of Living Adjustment Rider (COLA)
Elimination Period
Enhanced Catastrophic Rider (CAT)
Future Increase Option Rider
Monthly Indemnity
Non-Cancellable & Guaranteed Renewable To The Expiration Date
Presumptive Total Disability Benefit
Retirement Protection Plus (RPP) Disability Benefit Rider
Social Insurance Substitute Rider

Accumulation Period

The accumulation period is shown in the schedule page. It is an uninterrupted period of consecutive days that begins on the first day that you are disabled and during which the elimination period must be satisfied.
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Association Discounts

Berkshire has one of the top disability insurance policies in the industry right now for professionals. Many professional associations throughout the country have endorsed the Provider Choice policy for their membership. If an association has sponsored the company, any member of that association may purchase a disability insurance policy with a 10% discount. There are many state and local medical and dental associations throughout the United States that have endorsed Berkshire. However there are endorsements in a variety of professions, it is not limited to medical and dental associations. Berkshire has endorsements from such professional associations as accounting, bar, optometric, and public relations. The agents in our office will work with you to identify whether or not an association you are affiliated with has an endorsement you can use to obtain a discounted premium.
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Automatic Benefit Enhancement Rider

This rider is usually added to a disability insurance policy automatically by the underwriting department if there is no adverse medical history and you are not at the maximum amount of coverage for your occupation. It cannot be used if you choose a graded premium policy, and the future increase option rider and SIS benefit cannot take you above your maximum level of coverage either. The policy size must also be more than $1,000.

It provides a 4% annual benefit increase with premiums adjusted at attained age rates for five years. You have the ability to refuse any increase to keep your premiums level. If you refuse two increases inside of five years the rider will be removed from the policy. It is an excellent way to make sure your disability insurance benefits continue to grow with your income over the years. After five years you can apply to have the rider renewed for another five years with full underwriting.
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Benefit Period

The benefit period is shown in the schedule page. It is the longest period of time for which Berkshire will pay benefits for a continuous disability from the same cause. Available benefit periods are 2 years, 5 years, 10 years, to age 65, to age 67, and to age 70.
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Cost of Living Adjustment Rider (COLA)

This is an optional rider you can choose to apply for with your policy. If you become disabled without this rider, your monthly benefit would never grow to keep pace with inflation. If your disability was resolved within a year, this would not be an issue. If your disability lasted longer than a year, then you would most likely want to have a COLA rider on your policy to make sure the monthly benefit continued to grow with inflation.

You can choose from one of three options, all of which have a 3% Compound, 6% Maximum Compound, or the 4-Year Delayed COLA. Our agency is a proponent of the 4-Year Delayed COLA rider. It is the least expensive, and still provides excellent protection against inflation for a long term claim.
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Elimination Period

Think of the elimination period as a deductible. It is the period of time that must elapse from the onset of a disability, before you are eligible to receive monthly benefits. The vast majority of disability insurance policies sold today use a 90 day elimination period; it has almost become an industry standard.

However, there are often good reasons to go with some of the other available choices. If you have short term disability protection already with a 6 month benefit, then you may want a 6 month elimination period on your person long term disability insurance policy so when one ends, the other begins. You may also not have enough savings to last 90 days until benefits begin, in which case you may want to go with a shorter elimination period like 30 or 60 days (even though it will be much more expensive to do so.).

Berkshire offers the following elimination period choices, just know the longer your elimination period is, the less expensive the policy is, and the more money you will need to risk with self insurance: 30 days, 60 days, 90 days, 180 days, 360 days and 720 days.
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Enhanced Catastrophic Rider (CAT)

This rider can provide a monthly benefit in addition to any other disability benefit payments under the policy if you are catastrophically disabled.

Catastrophic Disability or Catastrophically Disabled

Catastrophic Disability or Catastrophically Disabled means that, due to injury or sickness, you are:
• Unable to perform two or more of the activities of daily living without human standby assistance; or
• Cognitively impaired; or
• Irrecoverably disabled

Cognitive Impairment or Cognitively Impaired means you suffered a severe deterioration or loss in your cognitive capacity which requires Substantial Supervision to protect you or others from threats to health and safety.

Substantial supervision means the continual supervision by another person that may include physical assistance, cueing by verbal prompting, gestures, or other similar demonstrations.

Activities of Daily Living (ADL's) include:
- Bathing
- Continence
- Dressing
- Eating
- Toileting
- Transferring

Irrecoverable Disability: means that, even if you are gainfully employed, injury or sickness results in you total complete and irrecoverable loss of the sight in both eyes, hearing in both ears, speech, or the use of both hand both feet, or one hand and one foot in their entirety.
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Future Increase Option Rider

The Future Increase Option Rider allows you to apply for additional coverage each year until age 55 without additional medical underwriting. Financial eligibility will be determined by your income, employment, and all other disability insurance with any insurer that you own, have applied for, or for which you are eligible.
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Monthly Indemnity

It is the amount we will pay for each month of total disability.
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Non-Cancellable & Guaranteed Renewable To The Expiration Date

You may renew this policy at the end of each premium term until the expiration date. During that time, We cannot change the premium or cancel the policy.
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Presumptive Total Disability Benefit

We will always consider you to be totally disabled even if you are gainfully employed, if injury or sickness results in your total and complete loss of:
- the sight in both eyes;
- hearing in both ears;
- speech; or
- the use of both hands, both feet, or one hand and one foot, in their entirety.

If your injury or sickness results from one of these conditions, we will waive the unexpired portion of the elimination period and benefits start to accrue from the date of your total disability. Monthly indemnity will be paid for as long as your total disability continues, but not longer than the benefit period.
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Retirement Protection Plus (RPP) Disability Benefit Rider

This rider provides an additional benefit in the event of a total disability. It is designed to help replace contributions made toe defined contribution retirement plans by you and your employer. The RPP monthly indemnity will be paid to the trust for you while you are totally disabled and not gainfully employed.
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Social Insurance Substitute Rider

This rider may provide an additional benefit that is coordinated with benefits you may receive from certain guaranteed social insurance programs or workers compensation.
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2018-52450 Exp 01/20