Practice Quiz

Health and Life Insurance

Category - Disability

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What is disability income insurance?
  1. A contract that pays monthly benefits for total disability
  2. A contract that pays benefits as a percentage of income
  3. A contract that pays to the beneficiary upon the death of the disabled
  4. A contract that makes payments in the event of a total disability
Explanation
Answer: A - Disability income insurance is a contract that pays monthly benefits to the insured for total disability. The contract normally follows an elimination period and then pays disability benefits due to accident or sickness. Benefits may be paid for partial or residual disability as well as total disability.
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