Life and Health 15 (Disability Income and Related Insurance)

for group disability income insurance, the extent of benefits is determined by:

the insured's income

a ______ protects a family or individual against the economic loss that would occur if the wage earner were totally disabled

total disability plan

______ benefit allows the insured, when disabled, to forego paying the premiums once he/she qualifies for benefits

waiver of premium

the term fully insured refers to someone who has earned ______ quarters of coverage, which is equivalent to ______ years of work

40 10

the waiting, or elimination period for Social Security disability is ______ months

5

the partial disability benefit is typically ______% of the total disability benefit, and is limited to a certain period of time

50

the minimum number of credits required for partially insured status for Social Security disability benefits is:

6 credits during the last 13-quarter period

benefit periods for individual short-term disability policies will usually continue from ______ to ______

6 months 2 years

group long-term plans provide monthly benefits usually limited to ______% of the individual's income

60

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%

______ is an example of a presumptive disability under a disability income policy

loss of 2 limbs

the coverage provided by a disability income policy that does not pay benefits for losses occurring as the result of the insured's employment is called ______

nonoccupational coverage

what provision can reduce the disability benefit based upon the insured's current income?

relation of earnings to insurance

the period of time immediately following a disability during which benefits are not payable is the ______ period

elimination

under a ______ plan, if the insured cannot perform duties of his/her current job that he/she was educated and trained for, disability benefits will be paid, even if the insured would be capable of earning income at a different occupation

own occupation

in order to collect Social Security disability benefits, the claimant must be able to demonstrate that the disability will last at least ______ months

12

under an own occupation plan, if the insured cannot perform his/her job for a period of up to ______ years, disability benefits will be issued

2

what does FIO stand for?

Future Option Rider

according to the FIO, name 3 qualifying events to increase an insured's benefit level:

age 40, marriage, birth of a child

a business wants to make sure that if a key employee becomes disabled, the business will be protected from any resulting loss. which kind of insurance will protect the business?

business disability

workers compensation benefits are regulated by which entity?

state government

the relation of earnings to insurance provision allows the insurance company to limit the insured's benefits to his/her average income over the last ______ months

24

what is the shortest possible elimination period for group short-term disability benefits provided by an employer?

0 days

which agreement specifies how a business will transfer hands when one of the owners dies or becomes disabled?

disability buy-sell

insurance that would pay for hiring a replacement for an important employee who becomes disabled is called ______

key employee disability insurance

name 3 things that a Business Overhead Expense policy will pay for if a business owner becomes totally disabled:

rent, utilities, employee payroll