Quiz: Living Benefit Riders

A life insurance policy's long-term care rider requires that an insured diagnosed with a cognitive disorder do which of the following to be eligible for benefit payments? A. that the mental condition first appeared within the past 12 months B. obtain a doctor's statement that he has been mentally disabled for the past 12 months C. provide a physician's certification, obtained within the past 12 months, that his or her health or safety is at risk without supervision D. demonstrate that his or her health or safety had been at risk at least once within the last 12 months

C. provide a physician's certification, obtained within the past 12 months, that his or her health or safety is at risk without supervision If qualifying for benefits for a cognitive reason, the insured must be physician-certified, within the previous 12 months, that his or her health or safety is at risk without supervision.

Which statement regarding life insurance accelerated benefits is correct? A. An accelerated benefit rider pays out part or all of the policy's face value while the insured is still living. B. The insured must use these funds only for medical care. C. There is a cost, in the form of additional premium, in having the accelerated benefit rider or provision in the policy. D. Accelerated benefits are payable anytime the insured requires hospitalization.

A. An accelerated benefit rider pays out part or all of the policy's face value while the insured is still living. Most life insurance policies today include the accelerated benefits provision as a standard policy provision, without additional charge.

All of the following statements about life insurance policy long-term care riders are correct, EXCEPT: A. There may be an elimination or waiting period of 10 to 100 days before benefits are payable. B. An insured who bought a long-term care rider becomes eligible for its benefit when he or she is diagnosed as chronically ill. C. If the insured's diagnosis is due to a medical reason, the insured must be certified as unable to perform at least two activities of daily living (ADLs) for at least 90 days. D. An insured must first be hospitalized before qualifying for LTC benefit payments.

D. An insured must first be hospitalized before qualifying for LTC benefit payments. Long-term care riders and policies cannot require time in a hospital before payment.

To be eligible for payments under a life insurance policy's long-term care rider, the insured must be certified as unable to perform which of the following? A. at least two activities of daily living for at least 90 days B. at least two activities of daily living for at least 30 days C. at least five activities of daily living for at least 30 days D. at least five activities of daily living for at least 90 days

A. at least two activities of daily living for at least 90 days To become eligible for payments under a long-term care rider for a medical reason, the insured must be certified as unable to perform at least two activities of daily living for at least 90 days.