Disability Income and Related Insurance

An insured's disability income policy includes an additional monthly benefit rider. For how many years can the insured expect to receive payment from the insurer before Social Security benefits begin?

1

What is the number of credits required for fully insured status for Social Security disability benefits?

40

What is the elimination period for Social Security disability benefits?

5 months

If an employer provides long-term group disability insurance for its employees what percentage of monthly wages are lower-paid employees eligible to collect?

66 and 2/3%

John owns a medical expense policy that he purchased for his family John's employer purchased the group disability income policy for John and all legible employees John's sub secretly suffered an accident on the job that lets him unable to work for four months if John receives benefits from his disability income policy which of the following would be true

Benefits received that are attributable to employer contributions are fully taxable to the employee as income

A small business owner is the insured under a disability policy that funds a buy-sell agreement. If the owner dies or becomes disabled the policy would provide which of the following?

Cash to the owner's business partner to accomplish a buyout

All of the following are true about group disability income insurance EXCEPT

Coverage applies both on and off the job

Under which of the following disability income plans would the benefits be subject to income tax

Group

Which of the following refers to "own occupation" disability

Insured is unable to perform duties of the occupation for which he/she was educated and trained

In a Disability Income policy, all of the following are considered presumptive disabilities EXCEPT

Loss of one eye

If a business owner becomes totally disabled a Business Overhead Expense policy will pay all of the following EXCEPT

Loss of the owner's income

Which of the following occupations would have the lowest disability insurance premiums?

Personal trainer

An insured has a Social Insurance Supplement rider in her disability income plan. Following a disability, she begins receiving benefit payments from the insurer. She then begins receiving Social Security benefits that are smaller than the SIS benefit payments. At that point, her insurer ends the SIS benefit payments. Which of the following best describes the situation?

The insured should contact the insurer to confirm her actual Social Security benefit amount. The SIS rider should pay the different between the rider amount and the actual benefit

An applicant is considered to be high-risk, but not so much that the insurer wants to deny coverage. Which of the following is NOT true?

The insurer will issue a conditional coverage.

If a policy is rated-up, which of the following is true?

The premium increases

The amount of Social Security disability benefits is based upon the worker's primary insurance amount (PIA) which is calculated from their average indexed monthly earnings over which years? which years of income may be deleted from calculation

Their highest 35; lowest 5