Individual Disability Income Policy Riders

Guaranteed insurability riders are typically found in: A. medical expense policies B. disability income policies C. long-term care policies D. group plans

B. disability income policies Guaranteed insurability riders are typically associated with disability income policies.

Which of the following allows insureds to increase a policy's level of benefits or scope of coverage in the future without having to prove insurability? A. nonrenewable (cancelable or term) policy B. guaranteed insurability rider C. multiple indemnity rider D. impairment rider

B. guaranteed insurability rider Guaranteed insurability riders allow insureds to increase a policy's level of benefits or scope of coverage in the future without having to prove insurability.

Which rider adds a death benefit to a disability income policy? A. cost-of-living adjustment rider B. future increase option rider C. waiver of premium rider D. annually renewable term rider

A life insurance rider can be added to a disability income policy to provide a death benefit if the insured dies. The insured need not be disabled at the time of death for the death benefit to be paid. This rider is often provided in the form of annually renewable term life insurance.

When Social Security disability benefits begin, the disability benefits from a social insurance supplement (SIS) rider will: A. match the Social Security benefits B. continue at their current level C. increase D. diminish or end

D. diminish or end The full amount of disability income provided under a SIS rider will not continue at their current level once a person qualifies for disability benefits under Social Security.

The purpose of the social insurance supplement (SIS) rider on a disability income (DI) policy is to: A. duplicate Social Security disability benefits B. pay additional monthly benefits until Social Security disability benefits begin C. pay additional benefits if the insured cannot qualify for Social Security disability benefits D. help the insured qualify for Social Security disability benefits

B. pay additional monthly benefits until Social Security disability benefits begin The SIS rider provides additional monthly benefits before social insurance program benefits begin. The additional benefits are reduced or ended when the social insurance program benefits begin.

When Social Security disability benefits begin, the disability benefits from a social insurance supplement (SIS) rider will: A. match the Social Security benefits B. continue at their current level C. diminish or end D. increase

C. diminish or end The disability income provided under a SIS rider ends or is reduced when Social Security disability benefits begin, depending on the provisions of the rider.

The future increase option rider is also known as the: A. return of premium rider B. annually renewable term life rider C. guaranteed insurability rider D. cost-of-living adjustment (COLA) rider

C. guaranteed insurability rider Although it pays a death benefit if the insured dies, a term life rider does not increase the amount of coverage like the future increase option rider does.

Which rider is NOT commonly found in a disability income policy? A. guaranteed insurability rider B. social insurance supplement rider C. long-term care rider D. return of premium rider

C. long-term care rider A long-term care rider is available for life insurance policies, but not for disability income policies.

A guaranteed insurability rider guarantees the right to buy additional coverage: A. until the insured is age 65 B. if the insured pays a surcharge C. under any circumstances D. if the insured shows evidence of insurability

C. under any circumstances A guaranteed insurability rider guarantees the policyowner's right to buy additional coverage under any circumstances.

The cost-of-living adjustment (COLA) rider adjusts an insured's disability income benefit payments according to changes in the: A. consumer price index B. Dow Jones Industrial Average C. gross domestic product D. S&P 500 Index

A. consumer price index A COLA rider adjusts the benefit payments according to changes in the consumer price index (CPI). During times of inflation, the adjustment increases the payments. During times of deflation, the payments are reduced.

When does a waiver of premium rider excuse the insured from paying the policy's premium? A. when the insured is totally disabled B. when the elimination period is in effect C. when the insured is partially disabled D. when the insured is either totally or partially disabled

A. when the insured is totally disabled A waiver of premium rider excuses the insured from paying the policy's premium during periods of total disability. The insured must pay the premium during the elimination period. If, after that period, the insured remains disabled, the waiver will be effective back to the first day of disability.

Which statement about the waiver of premium rider in a disability income (DI) policy is correct? A. It excuses the insured from paying the premium if the insured is partially disabled. B. It is usually a standard provision. C. It excuses the insured from paying the premium during the elimination period. D. It excuses the insured from paying the premium for up to six months of disability.

B. It is usually a standard provision. The waiver of premium rider excuses the insured from paying the policy's premium only while the insured is totally disabled.

Which rider adds a death benefit to a disability income policy? A. cost-of-living adjustment rider B. annually renewable term rider C. waiver of premium rider D. future increase option rider

B. annually renewable term rider A life insurance rider can be added to a disability income policy to provide a death benefit if the insured dies. The insured need not be disabled at the time of death for the death benefit to be paid. This rider is often provided in the form of annually renewable term life insurance.

Which statement about return of premium riders is correct? A. They refund the entire premium to the insured only if no claims are filed against the policy. B. They are available at no additional cost. C. They prevent the insured from receiving a premium refund if any claims are filed. D. Return of premium riders are not available in all states.

D. Return of premium riders are not available in all states. Critics believe that return of premium riders discourage legitimate claims. As a result, return of premium riders are not available in all states.

Which of the following is used to change coverage in a health insurance policy? A. receipt B. waiver C. refund D. rider

D. rider A rider is an attachment to and is part of a policy. It can be used either to limit coverage or to expand it by adding optional benefits.