#1
What does Disability Income Insurance primarily cover?
Lost income due to disability
ExplanationCoverage for income loss resulting from disability.
#2
Which of the following is a common feature of Disability Income Insurance policies?
Elimination period before benefits kick in
ExplanationA waiting period before insurance benefits begin.
#3
What is a 'residual disability' rider in Disability Income Insurance?
Coverage for partial disabilities that affect income
ExplanationInsurance for partial disabilities impacting income.
#4
What is the 'waiting period' in Disability Income Insurance?
The time an insured person must wait after a disability occurs before receiving benefits
ExplanationThe duration an insured must wait post-disability for benefit commencement.
#5
How is the benefit amount determined in a Disability Income Insurance policy?
Percentage of the insured person's pre-disability income
ExplanationBenefits calculated as a percentage of pre-disability income.
#6
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
ExplanationExclusion of coverage for disabilities stemming from mental or nervous disorders.
#7
What is the purpose of the 'waiver of premium' rider in Disability Income Insurance?
To waive premium payments if the insured becomes disabled
ExplanationWaiving premium payments in case of insured disability.
#8
In Disability Income Insurance, what is the 'own-occupation' definition of disability?
Coverage for disabilities preventing one's own occupation
ExplanationInsurance for disabilities hindering one's specific occupation.
#9
What does the 'future increase option' rider allow in Disability Income Insurance?
Allows increasing coverage without further medical underwriting
ExplanationPermission to enhance coverage without additional medical evaluation.
#10
What is the purpose of the 'cost-of-living adjustment' rider in Disability Income Insurance?
To adjust the benefit amount based on inflation
ExplanationAdjusting benefit amounts to account for inflationary changes.
#11
What is 'non-cancelable' disability insurance?
An insurance policy that cannot be canceled by the insurer as long as premiums are paid
ExplanationAn insurance policy uncancelable by the insurer if premiums are paid.
#12
What is the 'definition of disability' clause in a Disability Income Insurance policy?
The policy's explanation of the term 'disability'
ExplanationExplanation of the term 'disability' in the insurance policy.
#13
How does 'guaranteed renewable' differ from 'non-cancelable' in Disability Income Insurance?
Both guarantee renewal, but only non-cancelable policies guarantee the premium
ExplanationGuaranteed renewal for both, but only non-cancelable assures fixed premiums.