#1
What does Disability Insurance provide coverage for?
Income replacement
ExplanationProvides replacement income when unable to work due to disability.
#2
Which of the following is a common feature of Disability Insurance policies?
Elimination period
ExplanationWaiting period before benefits start after disability.
#3
What is the 'own occupation' definition in Disability Insurance?
Coverage if the insured can't perform their specific job
ExplanationPays benefits if unable to perform one's own job.
#4
How is the benefit amount determined in Disability Insurance?
Based on the insured's current salary
ExplanationBenefit amount tied to current earnings.
#5
Which of the following is NOT a common provision in Disability Insurance?
Survivor benefits
ExplanationBenefits typically not extended to survivors.
#6
Which type of Disability Insurance coverage typically has a longer elimination period?
Long-term disability
ExplanationLonger waiting period for long-term coverage.
#7
What does a residual disability rider in Disability Insurance cover?
Partial disabilities
ExplanationCovers partial inability to work.
#8
What is the purpose of a waiver of premium provision in Disability Insurance?
To waive premium payments if the insured becomes disabled
ExplanationEnsures no premiums during disability.
#9
What is residual disability coverage in Disability Insurance?
Coverage for disabilities that prevent the insured from performing some job duties
ExplanationProtection for partial inability to work.
#10
What is the purpose of residual disability benefits in Disability Insurance?
To provide partial coverage for a disability
ExplanationPartial income replacement.
#11
What is the purpose of a future increase option in Disability Insurance?
To increase benefit amounts in the future
ExplanationAllows increasing benefits over time.