Page 138 - Group Insurance and Retirement Benefit IC 83 E- Book

generally include a spouse or children younger than age 25 or 21, depending on the

policy. If the deceased has no such survivors, the benefits are paid to the estate.

There are at least two different ways survivor benefits might be paid. Under some
policies, the survivors receive a reduced monthly benefit for a short period or up to as

long as two years. Other policies pay survivors a single lump sum equal to two or three
times the monthly benefit the disabled person was receiving before death. Both of these

methods are illustrated in Figure 6-3.

Figure 6-3

Exclusions in Group DI Plans

Exclusions most frequently written into group disability income plans include these:

*Disability resulting from acts of war.

*Disability resulting from participating in criminal activities.
*Disability resulting from self-inflicted injury and/or attempted suicide.

*Disability resulting from certain mental conditions and substance abuse,
although these may be covered for limited periods.

*Periods during which the individual is not under a physician's care.

*Disability that began before the individual was covered under the group plan.
*Employment of the insured in any gainful occupation.

*Disability from pre-existing conditions as defined in the policy.