CHAPTER 9 LIFE INSURANCE

Individual has been credited with the appropriate number of quarters of coverage (Under Social Security disability coverage, a fully-insured individual is one who has been credited with the appropriate number of quarters of coverage.

How does one qualify as a fully-insured individual under Social Security disability coverage?

It provides a source of income for a meaningful standard of living during retirement ( Social Security enhances, but does not replace, a sound personal insurance plan.)

All of the following statements correctly describe the purpose of Social Security EXCEPT

fully insured (There are two types of insured statuses that qualify individuals for Social Security benefits: fully insured and currently insured. Most Social Security benefits are paid to fully insured individuals.)

An insured's status under Social Security can be described as

12 months (To qualify, the disability must be expected to last, or have lasted, at least 12 months, or it must be expected to result in death.)

How long must an individual be unable to engage in any gainful activity due to physical or mental disability in order to qualify for Social Security Total Disability?

40 quarters (To obtain fully insured status, a covered worker must accrue a total of 40 quarters of credit, which is about 10 years of work.)

Under Social Security disability requirements, a worker is fully insured on a permanent basis after having worked in a covered occupation for:

What is the formal name for Social Security? (The Social Security program, enacted in 1935 and administered at the federal level by the Social Security Administration, is more formally called OASDI. This acronym aptly identifies the types of protection provided under the program: "Old Age" (retirement), "Survivors" (death benefits), and "Disability Insurance".)

What is the formal name for Social Security?

Mason, who is married with one son, age 16, is a fully insured retired worker receiving Social Security benefits. In addition, his spouse is eligible for benefits at age 62 and his son is eligible for benefits until he is 18 years old. (The spouse of any worker eligible for retirement benefits is entitled to an old age income at a reduced amount starting at age 62. An unmarried child of a worker on retirement income is generally eligible to receive a monthly benefit until the child turns 18.)

Which of the following examples pertaining to Social Security benefits is CORRECT?