Disability Income Insurance
Coming from an insurance point of view, which of the following is the main risk
associated with disability?
Loss of limbs
Loss of income
Decreased work skills
Decreased mobility - ✔✔Loss
...
Disability Income Insurance
Coming from an insurance point of view, which of the following is the main risk
associated with disability?
Loss of limbs
Loss of income
Decreased work skills
Decreased mobility - ✔✔Loss of income
Jonas has disability insurance through his employer. The employer pays 75% of the
premium, and Jonas pays the other 25%. What is Jonas's tax liability for any benefits
paid from the disability plan?
Taxes must be paid on all benefits received
No taxes are payable on any benefits received
Taxes must be paid on 25% of the benefits received
Taxes must be paid on 75% of the benefits received - ✔✔Taxes must be paid on 75%
of the benefits received.
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
Additional coverage rider
Paid-up option rider
Extended insurability rider - ✔✔Guaranteed insurability rider
In what form do disability income policies typically pay benefits?
Lump sum
Periodic income
Tax credit
Annuity - ✔✔Periodic income
An example of a presumptive disability would be
a stroke
deafness
diabetes
cancer - ✔✔deafness
A disability elimination period is best described as a
time deductible
dollar deductible
eligibility period
probation period - ✔✔time deductible
A disability policyowner 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?
Recurrent period
Probationary period
Benefit period
Elimination period - ✔✔Benefit period
What is the primary factor that determines the benefits paid under a disability income
policy?
Education level
Wages
Type of occupation
Age - ✔✔Wages
Claims payable to a Disability Income insured, even when the insured can continue to
work, are the result of a
Total disability
Recurrent disability
Presumptive disability
Lengthy elimination period - ✔✔Presumptive Disability-A presumptive disability
provision specifies certain conditions that automatically qualify the insured for the full
benefit because the severity of the conditions presumes the insured is totally disabled,
even if the insured is able to work.
Loss of income insurance provides
an individual the means to replace wages
an individual the ability to collect workers' compensation
an individual the ability to continue with medical coverage after a disability
unlimited income replacement to a disabled person - ✔✔An individual the means to
replace wages.
What percentage of a participant's income are group long-term disability benefit
amounts typically limited to?
30%
40%
50%
60% - ✔✔60%
Frank is shopping for a disability income policy. Which of the following would have the
HIGHEST premium?
14 day waiting period / 5 year benefit period
14 day waiting period / 10 year benefit period
28 day waiting period / 5 year benefit period
28 day waiting period / 10 year benefit period - ✔✔14 day waiting period/10 year
benefit period
[Show More]
