Disability Income Insurance

Disability Income Insurance M becomes disabled and is unable to work for six months. M dies soon after from complications arising from this disability. M has a Disability Income policy that pays $2,000 a month. Which ...

Disability Income Insurance M becomes disabled and is unable to work for six months. M dies soon after from complications arising from this disability. M has a Disability Income policy that pays $2,000 a month. Which of the following statements BEST describes what is owed to her estate? - ✔✔Earned, but unpaid benefits In this situation, any earned but unpaid benefits will be paid. When a person returns to work after a period of total disability but cannot earn as much as he or she did before the disability, this situation is called which of the following? - ✔✔Residual disability A residual amount benefit is based on the proportion of income actually lost due to the partial disability, taking into account the fact that the insured is able to work and earn some income. Which of the following is the MOST important factor when deciding how much Disability Income coverage an applicant should purchase? - ✔✔Applicant's monthly income A physician opens up a new practice and qualifies for a $7,000/month Disability Income policy. What rider would the physician add if he wants the ability to increase his policy benefit as his practice and income grow? - ✔✔Guaranteed Insurability Option rider What is the primary factor that determines the benefits paid under a disability income policy? - ✔✔What is the primary factor that determines the benefits paid under a disability income policy? Bryce purchased a disability income policy with a rider that guarantees him the option of purchasing additional amounts of coverage at predetermined times without requiring to provide evidence of insurability. What kind of rider is this? - ✔✔Guaranteed insurability rider A guaranteed insurability rider guarantees the insured the option of purchasing additional amounts of disability income coverage at predetermined times without requiring the insured to provide evidence of insurability. In a Disability Income policy, which of these clauses acts as a deductible? - ✔✔Elimination Period The Elimination Period serves as the deductible in a Disability Income policy. D is an architect receiving Disability Income benefits who is not able to return to work full time, but can work on a part-time basis. Which of these features would allow D to continue receiving benefits? - ✔✔Residual Benefit clause A residual amount benefit is based on the proportion of income actually lost due to the partial disability, taking into account the fact that the insured is able to work and earn some income. An insured owns an individual Disability Income policy with a 30-day Elimination Period for sickness and accidents and a monthly indemnity benefit of $500. If the insured is disabled for 3 1/2 months, what is the MAXIMUM amount he would receive for an approved claim? - ✔✔$1,250 3.5 months - 1 month elimination period = 2.5 months. 2.5 months X $500 monthly indemnity = $1,250. The provision in a health insurance policy that suspends premiums being paid to the insurer while the insured is disabled is called the - ✔✔Waiver of Premium The Waiver of Premium provision in a health insurance contract suspends the insurer's right to receive premiums during a covered period of disability. Disability policies do NOT normally pay for disabilities arising from which of the following? - ✔✔War R had received full disability income benefits for 6 months. When he returns to work, he is only able to resume half his normal daily workload. Which provision pays reduced benefits to R while he is not working at full capacity? - ✔✔Residual Disability A residual disability benefit is usually a percentage of the total disability benefit for periods when the insured is unable to perform some of the duties of his/her occupation. Which of these statements concerning an individual Disability Income policy is TRUE? - ✔✔Normally includes an Elimination period A disability elimination period is best described as a - ✔✔time deductible B is a teacher who was injured in a car accident and cannot work. She is now receiving monthly benefits as a result of this accident. Which type of policy does B have? - ✔✔Disability Income In this situation, a Disability Income policy will pay monthly benefits to a teacher who is unable to work as a result of a car