Disability Income Insurance

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Disability Income Insurance Coming from an insurance point of view, which of the following is the main risk associated with disability? Loss of limbs Loss of income Decreased work skills Decreas... ed mobility - ✔✔Loss of income Jonas has disability insurance through his employer. The employer pays 75% of the premium, and Jonas pays the other 25%. What is Jonas's tax liability for any benefits paid from the disability plan? Taxes must be paid on all benefits received No taxes are payable on any benefits received Taxes must be paid on 25% of the benefits received Taxes must be paid on 75% of the benefits received - ✔✔Taxes must be paid on 75% of the benefits received. 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 In what form do disability income policies typically pay benefits? Lump sum Periodic income Tax credit Annuity - ✔✔Periodic income An example of a presumptive disability would be a stroke deafness diabetes cancer - ✔✔deafness A disability elimination period is best described as a time deductible dollar deductible eligibility period probation period - ✔✔time deductible A disability policyowner is injured and becomes totally disabled. The benefits pay for 2 years, starting from the date of the injury. What is this time period called? Recurrent period Probationary period Benefit period Elimination period - ✔✔Benefit period What is the primary factor that determines the benefits paid under a disability income policy? Education level Wages Type of occupation Age - ✔✔Wages Claims payable to a Disability Income insured, even when the insured can continue to work, are the result of a Total disability Recurrent disability Presumptive disability Lengthy elimination period - ✔✔Presumptive Disability-A presumptive disability provision specifies certain conditions that automatically qualify the insured for the full benefit because the severity of the conditions presumes the insured is totally disabled, even if the insured is able to work. Loss of income insurance provides an individual the means to replace wages an individual the ability to collect workers' compensation an individual the ability to continue with medical coverage after a disability unlimited income replacement to a disabled person - ✔✔An individual the means to replace wages. What percentage of a participant's income are group long-term disability benefit amounts typically limited to? 30% 40% 50% 60% - ✔✔60% Frank is shopping for a disability income policy. Which of the following would have the HIGHEST premium? 14 day waiting period / 5 year benefit period 14 day waiting period / 10 year benefit period 28 day waiting period / 5 year benefit period 28 day waiting period / 10 year benefit period - ✔✔14 day waiting period/10 year benefit period [Show More]

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