DEFINITION OF ‘CONCURRENT PERIODS’
A period of time in which more than one injury or disability affects a temporary disability policyholder. Concurrent periods for unrelated injuries allow the insurer to consider the injuries as one single injury, and thus allow the insurer to pay a single disability payment rather than multiple disability payments.
INVESTOPEDIA EXPLAINS ‘CONCURRENT PERIODS’
A concurrent period will be used to determine benefits if a policyholder is unable to work due to unrelated causes. This means that the second disability will be considered a continuation of the first disability unless the policyholder returns to full-time work. This prevents the policyholder from being able to double dip into policy benefits. For example, if the monthly benefit outlined in the disability policy is $1000, having two injuries in concurrent periods does not mean that the insurer will pay twice the benefit.
An example of concurrent periods of disability coverage involves a worker who sustains two separate injuries several months apart. The first injury prevented the policyholder from working full-time, and while working part-time (and receiving residual benefits) the worker was injured again. This second injury was unrelated to the first, but still kept the policyholder from returning to full-time work.
Insurers may place a cap on the duration of time that benefits will be paid out for temporary disability insurance policies. Rather than reset the cap calculation once a second injury occurs, the insurer will include a concurrent period in which both injuries were still being recovered from. This is different than using a consecutive period approach to calculating the cap. This approach benefits the insurer because the total number of months in the cap are not extended, but does not help the insured who does not get extended benefits.
Some disability policies prevent policyholders from collecting benefits over concurrent periods for different types of disabilities. For example, the policy may provide benefits for either a policyholder’s injury or sickness, but not both concurrently.