Chapter 6
Special Coverage Disability Insurance Policies


The important points addressed in this lesson are:

In addition to disability income insurance policies designed to replace the insured's income during disability, other disability policies provide specialty coverage for both business and non-business application

Overhead Expense coverage has particular application for the small business owner or professional with both a personal and business budget

Overhead Expense policies provide benefits on a reimbursement basis to pay the insured's usual and necessary business expenses

Disability Buyout insurance provides benefits on an installment or lump-sum basis to fund the buy out of the business interest of a disabled partner or co-stockholder

Keyperson Disability insurance provides benefits to the employer of a disabled key person to help compensate the business for its loss of the key person's skills and talents

Specialty disability insurance may be purchased, on an individual or group insurance basis, that pays disability benefits only in the case of a non-occupational disability; this coverage is generally used for insureds in high risk occupations

Disability insurance is available, on an individual or group insurance basis, that pays benefits based on the monthly service on outstanding debt




Business-related Coverage
Non-business Related Coverage
Chapter 6 Review