#1
Which of the following best defines Disability Income Insurance?
Insurance that provides income replacement if the insured is unable to work due to disability.
ExplanationIncome replacement insurance for disability.
#2
What is the waiting period in Disability Income Insurance?
The period during which the insured must wait before receiving benefits.
ExplanationWaiting period before benefit receipt.
#3
Which of the following is NOT a common source of disability income benefits?
Life insurance policies
ExplanationLife insurance policies do not typically provide disability income benefits.
#4
Which of the following factors does NOT typically influence the cost of Disability Income Insurance?
Marital status
ExplanationMarital status does not typically affect disability insurance costs.
#5
Which of the following is NOT a common exclusion in Disability Income Insurance policies?
Disabilities caused by workplace accidents
ExplanationWorkplace accident disabilities are not typically excluded.
#6
Which type of Disability Income Insurance typically pays a benefit if the insured is unable to perform their current occupation?
Own-occupation disability insurance
ExplanationCoverage for inability to perform current occupation.
#7
What is residual disability coverage in Disability Income Insurance?
Coverage for partial disabilities that result in a loss of income.
ExplanationCoverage for partial disabilities causing income loss.
#8
What is the definition of total disability in Disability Income Insurance?
Inability to perform any occupation.
ExplanationIncapacity for any occupation.
#9
In Disability Income Insurance, what is 'elimination period'?
The period during which the insured must remain disabled before receiving benefits.
ExplanationPeriod of disability before benefit receipt.
#10
What does the term 'residual benefits' refer to in Disability Income Insurance?
Benefits paid for partial disability that results in a loss of income.
ExplanationPartial disability benefits causing income loss.
#11
Under Social Security Disability Insurance (SSDI) in the United States, what does the term 'fully insured' mean?
The insured has paid enough Social Security taxes to be eligible for benefits.
ExplanationEligibility based on Social Security tax payments.
#12
Under Disability Income Insurance, what is 'guaranteed renewable'?
The insured's right to renew the policy at the same premium rate regardless of health condition.
ExplanationPolicy renewal at consistent premium, irrespective of health.
#13
In Disability Income Insurance, what is the purpose of a residual disability rider?
To provide additional coverage for partial disabilities.
ExplanationAdditional coverage for partial disabilities.
#14
Under Disability Income Insurance, what is 'non-cancelable'?
The insurer's inability to cancel the policy or change the premium rates as long as premiums are paid.
ExplanationPolicy cannot be canceled or premiums changed by the insurer.
#15
In Disability Income Insurance, what is the purpose of a cost-of-living adjustment (COLA) rider?
To increase the benefit amount over time to account for inflation.
ExplanationBenefit increase to match inflation.