Podcast
Questions and Answers
What is owed to M's estate after her death if she had a Disability Income policy that pays $2,000 a month?
What is owed to M's estate after her death if she had a Disability Income policy that pays $2,000 a month?
What is the term for when a person returns to work after total disability but earns less than before?
What is the term for when a person returns to work after total disability but earns less than before?
Residual disability
Which factor is the MOST important when deciding how much Disability Income coverage to purchase?
Which factor is the MOST important when deciding how much Disability Income coverage to purchase?
What rider would a physician add to increase his Disability Income policy benefit as his income grows?
What rider would a physician add to increase his Disability Income policy benefit as his income grows?
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What is the primary factor that determines the benefits paid under a Disability Income policy?
What is the primary factor that determines the benefits paid under a Disability Income policy?
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What type of rider guarantees the option of purchasing more coverage without evidence of insurability?
What type of rider guarantees the option of purchasing more coverage without evidence of insurability?
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Which clause acts as a deductible in a Disability Income policy?
Which clause acts as a deductible in a Disability Income policy?
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What clause allows D to continue receiving benefits while working part-time?
What clause allows D to continue receiving benefits while working part-time?
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If an insured with a monthly indemnity benefit of $500 is disabled for 3.5 months, what is the maximum amount they would receive?
If an insured with a monthly indemnity benefit of $500 is disabled for 3.5 months, what is the maximum amount they would receive?
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What provision in a health insurance policy suspends premium payments while the insured is disabled?
What provision in a health insurance policy suspends premium payments while the insured is disabled?
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Disability policies do NOT normally pay for disabilities arising from which situation?
Disability policies do NOT normally pay for disabilities arising from which situation?
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What provision pays reduced benefits if R returns to work but cannot work at full capacity?
What provision pays reduced benefits if R returns to work but cannot work at full capacity?
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An individual Disability Income policy normally includes an Elimination period.
An individual Disability Income policy normally includes an Elimination period.
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How is a disability elimination period best described?
How is a disability elimination period best described?
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What type of policy does B have if she is receiving monthly benefits after an accident?
What type of policy does B have if she is receiving monthly benefits after an accident?
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What kind of policy covers K's loss of income after becoming ill?
What kind of policy covers K's loss of income after becoming ill?
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What kind of coverage does J's Disability Income policy provide?
What kind of coverage does J's Disability Income policy provide?
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What is the elimination period of an individual disability policy?
What is the elimination period of an individual disability policy?
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What limits the monthly benefit amount a prospective policyholder may obtain?
What limits the monthly benefit amount a prospective policyholder may obtain?
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An individual Disability Income insurance applicant may be required to submit all of the following EXCEPT?
An individual Disability Income insurance applicant may be required to submit all of the following EXCEPT?
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What does a Guaranteed Insurability rider provide for a Disability Income policyowner?
What does a Guaranteed Insurability rider provide for a Disability Income policyowner?
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When will Z become eligible to receive benefits after contracting pneumonia and then having an accident?
When will Z become eligible to receive benefits after contracting pneumonia and then having an accident?
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If T becomes partially disabled under a policy that pays $5,000, what can he expect?
If T becomes partially disabled under a policy that pays $5,000, what can he expect?
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What limits the monthly benefit amount for a Disability Income policy?
What limits the monthly benefit amount for a Disability Income policy?
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How much total benefit will N receive under their Disability policy for 3.5 months?
How much total benefit will N receive under their Disability policy for 3.5 months?
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What benefits apply when an insured has a second disability from the same cause within a specified time period?
What benefits apply when an insured has a second disability from the same cause within a specified time period?
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What does the insurance company consider J's second period of disability after returning to work?
What does the insurance company consider J's second period of disability after returning to work?
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Under what provision may an insurer cover a second disability without a new elimination period?
Under what provision may an insurer cover a second disability without a new elimination period?
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What action will the insurer take if T set a fire resulting in a claim?
What action will the insurer take if T set a fire resulting in a claim?
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What is non-occupational disability coverage designed for?
What is non-occupational disability coverage designed for?
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How many months of benefit will V receive if he is disabled for four months after a 30-day Elimination period?
How many months of benefit will V receive if he is disabled for four months after a 30-day Elimination period?
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What type of policy will pay a monthly benefit to a personal assistant injured at home?
What type of policy will pay a monthly benefit to a personal assistant injured at home?
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Study Notes
Disability Income Insurance Key Concepts
- Earned but unpaid benefits are paid to an estate if the insured dies after becoming disabled.
- Residual disability occurs when a person returns to work part-time and earns less than prior to their disability. Benefits are based on the proportion of income lost.
- The most important factor for determining Disability Income coverage amount is the applicant's monthly income.
- A Guaranteed Insurability Option rider allows policyholders to increase their coverage as their income grows without needing evidence of insurability.
- Benefits paid under a disability income policy depend primarily on the insured's income.
- A Guaranteed insurability rider permits insured individuals to buy more coverage at predetermined times without proving health status.
- The Elimination Period acts as a deductible, requiring a waiting period before benefits are initiated.
- A Residual Benefit clause permits continued benefits for individuals who return to work part-time after disability.
- Maximum claim payments after a 30-day elimination period can be calculated by deducting the elimination period from the duration of total disability.
- The Waiver of Premium provision allows temporary suspension of premium payments during disability periods.
- Disability policies commonly exclude claims arising from war-related incidents.
- Residual Disability benefits are available to insured individuals who cannot perform all their occupational duties.
- Individual Disability Income policies typically include an Elimination period for claims.
- A time deductible is another term for the elimination period in disability insurance.
- A Disability Income policy pays monthly benefits for injuries or illnesses that prevent work.
- Nonoccupational coverage provides benefits for disabilities not related to employment, in contrast to work-related injuries covered by Workers' Compensation.
- Benefits may be limited based on a prospective insured individual's gross income at the time of purchase.
- Applicants for Disability Income insurance are generally not required to disclose their spouse's occupation.
- A Guaranteed Insurability rider offers policyholders the ability to increase coverage without health evaluations.
- After the 30-day Elimination period, benefits start at the end of the period for disabilities sustained.
- Once partially disabled, an insured may receive less than the full benefit amount specified in their policy.
- The primary limitation for determining Disability Income benefits is the insured's income.
- After a 30-day Elimination period, total benefits can be quantified accurately based on disability duration.
- Under the Recurrent Disability provision, policies may cover subsequent disabilities from the same cause without a new elimination period.
- A recurrent disability refers to a new disability period for the same or related condition following an initial claim.
- Insurers will rescind coverage if a claimant is found to have committed fraud, such as arson.
- Non-occupational disability coverage specifically caters to individuals facing non-work related disabilities.
- After satisfying an elimination period, insured persons can receive payments corresponding to the period of disability.
- Disability Income policies are designed to provide financial support during periods of temporary inability to work due to illnesses or injuries.
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Review key concepts and scenarios related to Disability Income Insurance through flashcards. This quiz helps reinforce understanding of how these policies work, including benefits and claims processes. Ideal for students preparing for exams in insurance or financial planning.
