Words Mean Everything
Words Mean Everything
The word-choice we use in ever-day life can have a powerful effect on an action, outcome, perspective, or reality.
This is holds true in the world of Employee Benefits
Consider that many employee benefits are provided via an insurance contract, word choice – commonly referred to as “contractual language” - can greatly impact the outcome or reality of a claim.
Some Words to Consider: “And” vs “Or”
As an example, let’s consider the words “And” vs “Or”. Group Long-Term Disability (LTD) Insurance contracts define a Total Disability in varying ways. Employee Benefit Consultants and Employers, elect the appropriate language to meet the occupational and earnings scenarios of their employee population. A definition of total disability that requires a “loss of earnings and a loss of time/duties” will be treated very differently from a definition that requires a “loss of earnings or a loss of time/duties”.
The prior definition with the “and” requirement is well suited for a salaried or hourly employee, that will experience an income loss if he/she is not able to work or at the same capacity (loss of duties).
However, this same word punishes employees that have trailing income/accounts receivables. As an example, an Attorney that is paid while physically disabled (loss of duties) years later from a big lawsuit he/she won’t while healthy, would not meet the requirement of the “and” definition. Such attorney would likely not receive a disability benefit while earnings are received, even if the income resulted from duties performed prior to being disabled. The “or” definition of disability would have resulted in a disability benefit payment to the attorney, since the definition requires a loss of time/duties OR a loss of income, but not both. This same “or” definition, however, does not have an application for a salaried employee who does not have “trailing income”.
The Final Word
Words and definitions have a powerful ability to shape outcome, particularly in the insurance or employee benefit space. Try to pay attention to the phrases and ask yourself what they imply. Last, be sure to choose words more carefully. Words mean everything.
