Chapter 3: lesson 4- disability income

ACEO's personal assistant suffered injuries at home and as result was unable to work for four months. What type of policy will pay the monthly benefit to the personal assistant

Disability income

B Is a teacher who was injured in a car accident and cannot work. She is not receiving monthly benefits as a result of this accident. Which type of policy does B have?

Disability income

K becomes Ill after traveling overseas and is unable to work for three months. What kind of policy would cover her loss of income?

Disability income

M becomes disabled and is unable to work for six months. M dies soon after from complications arising from the disability. M has A disability income policy that pays $2000 a month. Which of the following statements best describe what is owed to her estate?

Earned but unpaid benefits

In a disability income policy which of these Clauses acts as a deductible?

Elimination period

With disability income insurance,And insurance company may limit the monthly benefit amount a prospective policyholder may obtain because of the insured's: what?

Gross income at the time of purchase

T has disability insurance policy that pays a monthly benefit of $5000. If he becomes partially disabled, what can he likely expect?

Less than 5000 per month benefit regardless of the cause.

Z owns a Disability Income policy with a 30-day Elimination period. Z contracts pneumonia that leaves him unable to work from January 1 until January 15. Z then becomes disabled from an accident on February 1 and the disability lasts until July 1 the same year. Z will become eligible to receive benefits starting on:

March 1, The Elimination. Is the period of time between onset of disability and the time you are eligible for benefits it is best thought of as a deductible period for your policy, 30 day Elimination period

What does a Guaranteed Insurability rider provide a Disability Income policyowner?

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

T was insured under an individual disability income policy and was severely burned in a fire. As a result tea became totally disabled. The insurer began making Monthly benefit payments, but later discovered that the fire was set by T in what was described as arson. What actions will the insurance take?

The insurer will rescind The policy, deny the claim, and recover all payments made

What is Elimination period

The time between the disabling event and when payments actually begin- and services as a deductible in a disability income policy