Insurance Section 4 - Health

A CEO's personal assistant suffered injuries at home and as a result, was unable to work for 4 months. Which type of policy will pay a monthly benefit to the personal assistant?

Disability income

The maximum amount of coverage place on a disability income policy is based in the insured's

Earned income from the previous year

Individual disability income policies normally have a premium that

Adjust annually

At certain ages or dates, an insured can increase the stated benefit (within limits) under their disability income policy, regardless of health. Which policy rider BEST describes this?

Future income option

A physician opens up a new practice and qualifies for a $7000/month Disability Income policy. What rider would the physician add if he wants the ability to increase his policy benefit as his practive and income grow?

Guaranteed Insurability Option Rider

How frequently does disability income policy typically pay benefits?

Monthly

What is a disability income policy designed to do?

Pay benefits to maintain the insured's current standard of living

Trent has a permanent partial disability where he is paid 50% of his previous income. Trent is covered by a

Residual disability benefit

Total disability can be defind as "the insured's inability to perform the occupation for which he/she is reasonably qualified by education, training, or experience." For disability income insurance purposes, the definition is known as

The "own occupation" definition

A disability elimination period is best described as a

Time deductible

R becomes disabled and owns an individual Disability Income policy. When is R eligible to receive disability benefits?

Upon satisfying the elimation period requirement

Who does a disability income policy normally cover?

Wage earners

Which provision allows a disability income policy to remain in force without further payments when the insured has become totally and permanently disabled?

Waiver of premium

An insured owns a policy which includes a disability income rider. The disability benefit amount paid to the insured is based on the

Face amount of the policy

Mary and Paul have individual disability income policies that both pay a $5,000/month benefit. Mary's policy has a 30-day elimination period, and Paul's policy has a five month elimination period. Which of the following statements is true?

Paul's premium is probably less than Mart's

Disability policies do NOT normally pay for disabilities arising from which of the following?

War

Typically, a disability income rider will pay

a monthly income for as long as the insured remains totally and completely disabled