Health Disability Income

K becomes ill after traveling overseas and is unable to work for 3 months. What kind of policy would cover her loss of income? -Indemnity -Major Medical - Travel -Disability Income

Disability Income

What is the primary factor that determines the benefits paid under a disability income policy? Education level Wages Type of occupation Age

Wages

A disability elimination period is best described as a time deductible dollar deductible eligibility period probation period

time deductible

Which of the following is the MOST important factor when deciding how much Disability Income coverage an applicant should purchase? -Applicant's occupation -Applicant's monthly income -Applicant's health -Applicant's previous disabilities

Applicant's monthly income

A physician opens up a new practice and qualifies for a $7,000/month Disability Income policy. What rider would the physician add if he wants the ability to increase his policy benefit as his practice and income grow? -Extended Term rider -Cost of Living Adjustment rider -Guaranteed Insurability Option rider -Waiver of Premium rider

Guaranteed Insurability Option rider

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 -Additional coverage rider -Paid-up option rider -Extended insurability rider

Guaranteed insurability rider (guarantees the insured the option of purchasing additional amounts of disability income coverage at predetermined times without requiring the insured to provide evidence of insurability)

T has Disability Income policy that pays a monthly benefit of $5000. If T becomes partially disabled, what can he likely expect? -$5,000 per month benefit -$10,000 per month benefit if the cause was accidental -More than $5,000 per month benefit if cause was work-related - Less than $5,000 per month benefit regardless of the cause

Less than $5,000 per month benefit regardless of the cause

R had received full disability income benefits for 6 months. When he returns to work, he is only able to resume half his normal daily workload. Which provision pays reduced benefits to R while he is not working at full capacity? Residual Disability Recurrent Disability Presumptive Disability Occupational Disability

Residual Disability (benefit is usually a percentage of the total disability benefit for periods when the insured is unable to perform some of the duties of his/her occupation)

What does a Guaranteed Insurability rider provide a Disability Income policyowner? -The guarantee that the premiums will never increase - The guarantee that the policy will never be cancelled - The ability to periodically increase the amount of coverage without evidence of insurability -The ability to periodically increase the amount of coverage only with evidence of insurability

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

Disability policies do NOT normally pay for disabilities arising from which of the following? Accidents War Negligence Sickness

War