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