Principal Disability Insurance — Definitions Matter
June 3, 2019
Definitions matter in Disability Insurance. The language in a carrier’s coverage contract can make a big difference in the determination of when–or if–an employee qualifies as disabled.
Principal’s definitions of disability can provide an advantage to employers considering group disability coverage. Here are a few definitions that differentiate Principal from the competition.
Principal’s “Or” Definition of Disability
Using the small word “or” in the definition of disability means employees who aren’t totally disabled may still qualify for benefits. Employees qualify for benefits by meeting either of the following criteria:
Unable to perform the majority of substantial duties of their own job (for short-term disability) or occupation (for long-term disability). or
Unable to earn 80% of their pre-disability income while working in a modified capacity.
Principal’s “Own Job” Definition for Short-Term Disability
Principal uses an “own job” definition of disability instead of the more common “own occupation.” That means they look at the job the employee was performing on the date of the disability—not the occupation.