Umm, my guess about the time-out option is that it's the period of network inactivity after that an (automatic) reauthentication is required. But maybe someone more competent than me can answer that question.
You have a router that dials in via your modem and you don't have to reenter you provider's information such as your password each time you connect to the internet. It's a feature, really. Unless you want to log in into your router's web interface to input the password each time you want to browse a forum, I'd suggest you leave it like it is.
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