An insured's benefits may be reduced under a disability income insurance policy by all the following EXCEPT:
A) workers' compensation benefits.
B) spouse's income.
C) state and local government benefits.
D) Social Security benefits.
B) spouse's income. A spouse's income does not influence the reductions of benefits.
Which of the following statements regarding an accidental death and dismemberment rider for a disability insurance policy is NOT correct?
A) Once a sum has been paid under the dismemberment feature, the disability income payments stop.
B) The dismembermen
B) The dismemberment feature provides insureds with periodic payments to help them during a rehabilitation period.
FALSE- the dismemberment feature provides a LUMP SUM
Dismemberment feature provides a _____ to help the insured during rehab.
lump sum
Which of the following statements is CORRECT?
A) Disability income insurance does not provide a death benefit.
B) Individual disability plans are only available on a short-term basis.
C) Group disability plans are only available on a long-term basis.
D) D
A) Disability income insurance does not provide a death benefit. True- Disability income insurance provides a periodic income in the event the insured cannot work due to a disability. No death benefits are provided.
Rachel added a Social Security rider to her individual disability income plan. This rider provides an additional monthly benefit for what purpose?
A) To assure that her Social Security benefits are not reduced once her disability benefits begin.
B) To pay
D) To assure that a projected level of benefit is received.
Social Security rider
The additional monthly benefit is paid when the insured is eligible for Social Security, but those benefits have not yet begun, have been denied, or have begun in an amount less than the benefit amount of the rider. After the actual Social Security benefi
Will earns $4,000 a month and would be eligible for disability insurance to replace up to 60% of his income under a disability income policy he is interested in buying. He already has a disability income policy through his employer that will pay a fixed $
A) $2,600.00. Will's maximum benefit (60% of his $4,000 predisability income) is $2,400. Because the percentage-of-earnings method is used to set benefits, his monthly benefit will be reduced by the $200 payable under his employer's policy.
Which statement most accurately describes the purpose of disability income insurance?
A) It supplements disability payments from Social Security if those payments are less than $500 a month.
B) It replaces a portion of the insured's income if he or she is
B) It replaces a portion of the insured's income if he or she is unable to work due to a disability.
Which of the following statements regarding the medical reimbursement benefit available in some individual disability income policies is CORRECT?
A) The benefit is paid for a disabling illness.
B) The benefit is only paid if the insured is still able to c
D) The benefit is a percentage of the monthly income benefit.
Jim has just received a lump-sum payment from his individual disability income policy provider. Which of the following is the best explanation for this payment?
A) His policy includes a return-of-premium provision.
B) His Social Security benefit has been
A) His policy includes a return-of-premium provision. (Some individual disability income policies include a partial refund of premium if no claims are made after a certain period of time. )