What is Disability Insurance?
Disability benefit portion of OASI (DI). Social insurance benefit intended for those who are expected to be unemployed for one year or more due to illness. Indexed (linked to consumer price index). Contributory, linked to prior work history and earnings, designed to replace part of prior wage. Also and 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. In many cases, insurance cover ceases shortly after an employer ceases contributions on behalf of a member. 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.
Mandatory federal insurance, for all persons insured within the AHV framework, to cover an expected permanent or long-lasting loss of earning capacity resulting from physical or mental damage due to a congenital defect, illness or an accident.
Different super funds have different arrangements which may cover Total and Permanent Disability or Temporary Total Disablement, either as a lump-sum or regular income payments. Many give members the option of different levels of cover. Insurance premiums are usually deducted from the member's account. Disability benefit portion of OASI (DI). Social insurance benefit intended for those who are expected to be unemployed for one year or more due to illness. Indexed (linked to consumer price index). Contributory, linked to prior work history and earnings, designed to replace part of prior wage.
The Consumer's Guide to Disability Insurance explains disability insurance and sources of disability income to help you decide if you need this coverage. It will also help you compare your choices of policies. For a free copy, write to: Health Insurance Association of America, 555 13th St., N.W., Suite 600 East, Washington, D.C. 20004. |
