Chapter 4 (Health)

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

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

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

Which of these statements concerning an individual Disability Income policy is TRUE?

Normally includes an Elimination period

What does a Guaranteed Insurability rider provide a Disability Income policyowner?

The ability to periodically increase the amount of coverage without evidence of insurability

When a person returns to work after a period of total disability but cannot earn as much as he or she did before the disability, this situation is called which of the following?

Residual disability

What is the elimination period of an individual disability policy?

Time period an insured must wait before coverage begins

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

Disability policies do NOT normally pay for disabilities arising from which of the following?

War

The ability to periodically increase the amount of coverage without evidence of insurability

spouse's occupation

A disability elimination period is best described as a

time deductible