Disability Income Review

What policy would be the least expensive to own? benefits to 65, (a. 30 day b. 180 day c. 60 day d. 90 day) elimination period

180 day

What would qualify for worker's compensation benefits?

An employee injured while working overtime.

A disability policy that covers illnesses or accidents both on or off the job is called:

An occupational policy.

The time period benefits will be paid for each disability is called:

Benefit period.

The disability policy that covers a fixed period of time and provides funds for outstanding debts if an owner of a business is disabled is:

Business Overhead Expense Insurance

The time between the beginning of a covered disability and the beginning of the benefit payment is called:

Elimination Period

A group disability income policy, as compared to an individual disability income policy, is generally:

Less costly with more liberal provisions.

If an insured is receiving disability income, the amount is generally:

Less than regular salary.

Regarding the waiver of premium provision in a disability policy:

Premiums paid during the elimination period are refunded and future premiums are waived as well.

A disability benefit that pays the difference in a worker's pre-injury wage and decreased wage is:

Residual disability benefit.

Mr. Jones normally earns $70,000 annually. After returning to work following a period of disability he can only earn $25,000. The type of disability he would need to cover the difference is:

Residual disability.

Martha is on disability. Her policy has a waiver of premium rider. What happens when she returns to work?

She begins to pay her regular premium.

The period between the onset of a disability and the beginning of benefit payments is called:

The elimination (waiting) period

Most disability income plans promise to pay less than the disabled person's full earnings as a benefit because?

To prevent fraudulent claims.

The insured's inability to perform the duties of any occupation for which he or she is reasonably qualified by education, training, or experience is:

any occupation