Disability Income Insurance

Disability Income Insurance Which of these statements concerning an individual Disability Income policy is TRUE? - ✔✔"Normally includes an Elimination period" (Disability Income policies typically contain an Eliminati ...

Disability Income Insurance Which of these statements concerning an individual Disability Income policy is TRUE? - ✔✔"Normally includes an Elimination period" (Disability Income policies typically contain an Elimination ) 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.) What does a Guaranteed Insurability rider provide a Disability Income policyowner? - ✔✔The ability to periodically increase the amount of coverage without evidence of insurability. What is the primary factor that determines the benefits paid under a disability income policy? - ✔✔Wages. (The major factor in determining the benefit amount paid under a disability income policy is wages.) P received Disability income benefits for 3 months then returns to work. She is able to work one month before her condition returns, leaving her disabled once again. What would the insurance company most likely regard this second period of disability as? - ✔✔"A recurrent disability". (A second period of disability from the same or related cause of a prior disability is called a recurrent disability.) K becomes ill after traveling overseas and is unable to work for 3 months. What kind of policy would cover her loss of income? - ✔✔Disability Income. (would reimburse an insured for loss of earnings if the insured became sick.) J has a Disability Income policy that does NOT provide benefits for losses occurring as the result of his employment. What kind of coverage is this? - ✔✔Nonoccupational coverage. (The coverage provided by a Disability Income policy that does not provide benefits for losses occurring as the result of the insured's employment is called nonoccupational coverage.) Which of the following is the MOST important factor when deciding how much Disability Income coverage an applicant should purchase? - ✔✔Applicant's monthly income. (In determining how much Disability Income insurance a prospective insured should purchase, the most important factor to be considered is the insured's monthly income.) V is insured under an individual Disability Income policy with a 30-day Elimination period. On July 1, he is involved in an accident and temporarily disabled. He returns to work on December 1. How many months of benefit are payable? - ✔✔"4 months". (After the 30-day Elimination period has been satisfied, there will be 4 months of benefit payments.) 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. Loss of income insurance provides? - ✔✔An individual the means to replace wages. An example of a presumptive disability would be ? - ✔✔Deafness. A policyowner suffers an injury that renders him incapable of performing one or more important job duties. Any decrease in income resulting from this injury would make him eligible for benefits under which provision? - ✔✔Partial disability. Which clause defines total disability as being unable to perform the major duties of the insured's regular occupation? - ✔✔Own occupation clause. What percentage of a participant's income are group long-term disability benefit amounts typically limited to? - ✔✔60% Coming from an insurance point of view, which of the following is the main risk associated with disability? - ✔✔Loss of income. Which type of disability would be less than total impairment and equal to permanent impairment? - ✔✔Permanent partial disability. What is the purpose of a Disability Income Benefit? - ✔✔Provide money for living expenses. What is the elimination period of an individual disability policy? - ✔✔Time period a disabled person must wait before benefits are paid. A disability policy owner is injured and becomes totally disabled. The benefits pay for 2 years, starting from the date of the injury. What is this time period called? - ✔✔Benefit period. 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. When determining the monthly benefit amount for a Disability Income policy, the factor that limits the amount a prospective insured may purchase is? - ✔✔Income. When an insured has the same disability within a specified time period and the insurance company provides the same benefits without a new waiting period, the second disability is covered under which of the following benefits? - ✔✔Recurrent Disability. Which of these statements concerning an individual Disability Income policy is TRUE? - ✔✔Normally includes an Elimination period. Disability policies do NOT normally pay for disabilities arising from which of the following? - ✔✔War. T has Disability Income policy that pays a monthly benefit of $5000. If T becomes partially disabled, what can he likely expect? - ✔✔Less than $5,000 per month benefit regardless of the cause. K becomes ill after traveling overseas and is unable to work for 3 months. What kind of policy would cover her loss of income? - ✔✔Disa