Page 129 - Group Insurance and Retirement Benefit IC 83 E- Book

same period. We're assuming weekly earnings of $500, 12 weeks of benefits with 100%

of wages paid for six weeks in the first example.

$500 @ 100% = $500 x 6 weeks = $3,000

$500 @ 70% = $350 x 6 weeks = $2,100
Total Benefits = $5,100

$500 @ 70% = $350 x 12 weeks = $4,200
$500 @ 66% = $333.50 x 12 weeks = $4,002

These are some of the more common ways percentages of earnings and duration of

benefits may be applied. You will want to determine the details of the STD plans you
sell.

Definition of Disability

Most STD policies use the liberal "own occupation" definition of total disability to
trigger benefit payments. This means the insured is unable to perform the substantial and

material duties of his or her own occupation. A few STD policies still include the more
restrictive definition, requiring the inability to work in any gainful occupation, but these

policies are rare.

The federal Pregnancy Disability Act requires businesses that offer disability plans to

employees to treat pregnancy and childbirth as a sickness under disability income
policies, triggering benefits on the same terms as any other sickness. A few states have

even more stringent laws concerning pregnancy disability benefits, so you will want to be
familiar with the exact requirements where you do business.