Disability Income Insurance and Policy Riders Quiz

Learn about Disability Income Insurance and key policy riders. Understand coverage, definitions, and important features in this comprehensive quiz.

Practice Learn Test

What does Disability Income Insurance primarily cover?

Medical expenses

Lost income due to disability

Funeral expenses

Property damage

Which of the following is a common feature of Disability Income Insurance policies?

Coverage for cosmetic surgeries

Immediate coverage without waiting period

Coverage for pre-existing conditions

Elimination period before benefits kick in

What is a 'residual disability' rider in Disability Income Insurance?

Coverage for disabilities caused by accidents only

Coverage for partial disabilities that affect income

Coverage for disabilities due to pre-existing conditions

Coverage for disabilities during specific hours of the day

What is the 'waiting period' in Disability Income Insurance?

The time an insured person must wait after purchasing the policy before it becomes active

The time an insurance agent takes to process a claim

The time an insured person must wait after a disability occurs before receiving benefits

The time an insurance company takes to approve a policy application

How is the benefit amount determined in a Disability Income Insurance policy?

Based on the insured person's age

Fixed amount determined by the insurance company

Percentage of the insured person's pre-disability income

Randomly assigned by the insurance agent

In Disability Income Insurance, what is the purpose of the 'mental or nervous disorders' exclusion?

To exclude coverage for disabilities caused by mental or nervous disorders

To limit coverage for specific mental disorders only

To provide additional coverage for mental health conditions

To exclude coverage for physical disabilities only

What is the purpose of the 'waiver of premium' rider in Disability Income Insurance?

To increase the premium amount

To waive the waiting period

To waive premium payments if the insured becomes disabled

To provide additional coverage for specific conditions

In Disability Income Insurance, what is the 'own-occupation' definition of disability?

Coverage for disabilities caused by others

Coverage for any occupation

Coverage for disabilities preventing one's own occupation

Coverage for only temporary disabilities

What does the 'future increase option' rider allow in Disability Income Insurance?

Allows reducing coverage in the future

Allows increasing coverage without further medical underwriting

Allows skipping premium payments in the future

Allows changing the policy beneficiary

#10

What is the purpose of the 'cost-of-living adjustment' rider in Disability Income Insurance?

To decrease the overall cost of the insurance policy

To adjust the benefit amount based on inflation

To provide coverage for living expenses unrelated to disability

To reduce the waiting period

#11

What is 'non-cancelable' disability insurance?

An insurance policy that can be canceled by the insured at any time

An insurance policy that cannot be canceled by the insurer as long as premiums are paid

An insurance policy that automatically cancels after a certain period

An insurance policy that can be canceled by the insurer without notice

#12

What is the 'definition of disability' clause in a Disability Income Insurance policy?

The policy's explanation of the term 'disability'

The insured person's personal definition of disability

The insurance agent's interpretation of disability

The government's definition of disability

#13

How does 'guaranteed renewable' differ from 'non-cancelable' in Disability Income Insurance?

They are synonyms and mean the same thing

Guaranteed renewable policies can be canceled by the insurer, while non-cancelable policies cannot

Non-cancelable policies can be canceled by the insured, while guaranteed renewable policies cannot

Both guarantee renewal, but only non-cancelable policies guarantee the premium