Chapter 6

Frank is shopping for a disability income policy. Which of the following would have the HIGHEST premium?

14 day waiting period / 10 year benefit period

What percentage of participants income are group long term disability benefits amounts typically limited to

60%

The waiver of premium does not include

All future premium are waived if the insured receives from the disability

A disability income policy can prevent and insured from earning a higher income then if she/he were working by utilities

Benefits limits

A disability policyowner is injured day becomes totally disabled. The benefits pay for 2 years starting from the date of the injury what is the time period called

Benefits period

Which disability policy provision would address any concerns of the value of the benefits decreasing over time?

Cost of living benefit

Is not considered a presumptive disability

Loss of a leg or arm

Coming from and insurance point of view which of the following is the main risk associated with disability

Loss of income

Tyler purchased a disability policy with a waiver of premium rider on April 1. He is disabled on May 1. On June 1, he receives proof of permanent and total disability, and submits a claim. He begins receiving benefits on June 15. When are his premiums waived?

May 1

Which clause benefits total disability as being unable to preform major duties to the insureds regular occupation

Own occupation clause

In what form do disability income policies typically pay benefits?

Periodic income

A rehabilitation benefit is intended to

Prepare the insured to return to employment

Claims payable to a Disability Income insured, even when the insured can continue to work, are the result of a

Presumptive disability

What is the purpose of a disability income benefits

Provides money for living expenses

A policyowner suffers an injury that renders him incapable of performing one or more important job duties. Any decrease in income resulting from this injury would make him eligible for benefits under which provision?

partial disability

Typically, Long-Term Disability benefits are coordinated with which benefit plan?

social security

Bryce purchased a disability income policy with a rider that guarantees him the option of purchasing additional amounts of coverage at predetermined times without requiring to provide evidence of insurability. What kind of rider is this?

Guaranteed insurability rider

What is the primary factor they determines the benefits paid under a disability income policy

Wages

Loss of income insurance provides

an individual the means to replace wages

A disability elimination period is best described as a

time deductible