M Becomes Disabled

Question:

Answer: Earned, but unpaid benefits

Question: K becomes ill after traveling overseas and is unable to work for 3 months. What kind of policy would cover her loss of income?

Indemnity

Major Medical

Travel

Disability Income

Answer: Disability Income

Question: When determining the monthly benefit amount for a Disability Income policy, the factor that limits the amount a prospective insured may purchase is

occupation

income

age

medical condition

Answer: income

Question:

Answer: Recurrent Disability

Question: Which of these statements concerning an individual Disability Income policy is TRUE?

Premiums are normally tax-deductible

Age of the insured determines the amount of the benefits

Normally includes an Elimination period

Benefits are normally taxable

Answer: Normally includes an Elimination period

Question: Disability policies do NOT normally pay for disabilities arising from which of the following?

Accidents

War

Negligence

Sickness

Answer: War

Question:

Answer: Less than $5,000 per month benefit regardless of the cause

Question: K becomes ill after traveling overseas and is unable to work for 3 months. What kind of policy would cover her loss of income?

Indemnity

Major Medical

Travel

Disability Income

Answer: Disability Income

Question: An individual Disability Income insurance applicant may be required to submit all of the following information EXCEPT

medical history

gross income

occupation

spouse’s occupation

Answer: spouse’s occupation

Question:

Answer: Residual Benefit clause