Disability Insurance Glossary

Here are common terms associated with disability insurance and a few of the benefits and options offered with our policies.

Note: This is a partial list. It does not show all the benefits and options offered in our disability policies. Benefits and options may vary by state. Consult with a licensed insurance agent.

A

• Accident Hospital Confinement Indemnity Benefits Rider (optional)

  Pays up to $500 for each day you’re hospitalized due to an accident. The benefit doubles for days of confinement in intensive care.

• Accident Medical Expense Rider (optional)

  Available with our Accident Only Short-Term Disability policy, provides a cash reimbursement for medical-related expenses incurred per accident based on a maximum amount you choose ($1,000, $2,000, $3,000, or $5,000) when you purchase your disability insurance policy.

B

• Benefit Period

  The number of months the disability insurance policy would pay you benefits, after the elimination period is satisfied.

C

• Cost-of-Living Adjustment Rider (optional)

  Available with our Long-Term Disability policy, increases your monthly benefit while you are disabled so your benefits aren’t degraded by inflation. Your monthly benefit will increase annually by the lesser of the percentage change in the Consumer Price Index or five percent.

• Critical Illness Benefits Rider (optional)

  Available with our Short- and Long-Term Disability policies, pays up to $25,000 as a lump sum benefit if you are diagnosed with certain specific diseases.

E

• Elimination Period

  After a disabling injury or sickness, the number of calendar days before your disability insurance policy would begin to pay benefits.

F

• Future Insurability Option Rider (optional)

  Available with our Long-Term Disability policy, allows you to increase your base monthly benefit as your income increases regardless of changes in your health status.

G

• Guaranteed Renewable

  Our disability insurance policies are guaranteed renewable up to age 67. During that time, we cannot cancel your policy as long as your premiums are paid when due.

H

• Hospital Confinement Indemnity Benefits Rider (optional)

  Available with our Short- and Long-Term Disability policies, pays up to $500 for each day you’re hospitalized. The benefit doubles for days of confinement in intensive care.

I

• Income

  A maximum monthly benefit amount is determined based on your gross annual earned income. The maximum is intended to help you sustain your standard of living during the benefit period of your policy.

• Issue Age

  Premiums are based in part on your age at time of purchase and then remain level. Your premiums can only be changed if premiums are changed for everyone who has the same insurance policy from Mutual of Omaha.

M

• Medical Underwriting

  Disability insurance is medically underwritten using guidelines that help determine the premium rate. Even if you have a chronic medical condition, you still may qualify for disability coverage.

• Monthly Benefit

  The amount the disability insurance policy would pay you each month during the benefit period, after the elimination period is satisfied.

O

• Occupation

  Disability insurance premiums are based in part on the amount of “risk” involved in an occupation. Your job is part of an “occupational class” that helps determine your premium. Not all occupations qualify for disability insurance.

P

• Portable/Portability

  Your ability to retain benefits when switching employers.

• Preferential Rates

  If you are a member of a qualifying association or self-employed, you may qualify for a preferential premium.

• Premium

  The monthly amount you pay to keep your disability insurance policy inforce. Initial premiums are based on issue age, occupation, benefit period, elimination period, monthly benefit amount and any optional coverage you select.

R

• Rehabilitation Benefit

  If you are disabled and receiving disability benefits, you may be eligible to receive vocational rehabilitation services at our expense.

• Renewability

  Our disability insurance policies are guaranteed renewable up to age 67. During that time, we cannot cancel your policy as long as your premiums are paid when due.

• Return of Premium Benefit Rider (optional)

  Available with our Short-Term and Long-Term Disability policies, you can receive back either 50 or 80 percent of premiums minus claims paid after 10 years, depending on the option chosen.

S

• SIS - Social Insurance Supplement Benefits Rider (optional)

  Available with our Long-Term Disability policy, pays you an additional monthly benefit when you don’t qualify for social insurance, such as Social Security or Workers’ Compensation.

• Survivor Benefit

  Included in our disability insurance policies (except the Business Operating Expense policy), if you die while disabled, we will pay your beneficiaries a lump sum amount equal to three times the total disability monthly benefit payable at the time of your death.

T

• Terminal Illness Benefit

  Included in our Short-Term and Long-Term Disability policies, this benefit provides you the option to accelerate up to 12 months of disability benefits if you are diagnosed with a terminal illness.

W

• Waiver of Premium Benefit (included in all base policies)

  We will waive your premium for the coverage and all optional riders after you are disabled for 90 days. We also will refund any premiums you paid during this 90-day period.

• Workers’ Compensation Rider (Short-Term Disability policies only)

  If you are disabled by an injury or illness that is covered by state or federal workers’ compensation, employer’s liability or occupational disease law, we will pay 50 percent of the short-term disability benefit.