Disability Insurance Conditions

Definition - What does Disability Insurance Conditions mean?

Disability insurance conditions refer to the stipulations in a disability insurance policy concerning coverage amount, length, exclusions, cancellation, premiums, and so on. These conditions vary, depending on the policy, the insurance company selling it, and any applicable state or federal laws.

Insuranceopedia explains Disability Insurance Conditions

Social Security clearly defines a disability as a health condition that renders a person unable to work. A medical certificate to establish the veracity of such a condition entitles the person to disability benefits, or otherwise payments to help replace the income they would lose due to their inability to work or continue working.

However, for those who want the same benefits from a private insurance company, it is important to understand the terms and conditions of the offered policies. A disability may be categorized as a short- or long-term condition, and it may either refer to a physical or mental state. The definitions may vary from one insurer to another. Moreover, an insurance company might also be particular about the cause of the condition—whether it comes after sickness or is a result of an accident—before it provides coverage.

Lastly, it is also important to consider pre-existing conditions. The standard by which this condition is honored depends on the state. Either they use the "objective standard," which means that a person has been receiving medical treatment or attention regarding a health problem, or the "prudent person standard," which broadly means that a person experiences symptoms and should have asked for medical advice or treatment. The latter, especially, might potentially enable a company to deny a person coverage in the future.

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