Question

In: Finance

Brriefly explain the following disability-income insurance provisions: (a) Residual disability (b) Benefit period (c) Elimination period...

Brriefly explain the following disability-income insurance provisions:

(a) Residual disability

(b) Benefit period

(c) Elimination period

(d) Wavier of premium

Solutions

Expert Solution

Disability insurance is the insurance that helps to get the income which a person has lost due to certain disability.

a) Residual disability is the income provision under disability insurance that provides money when a person suffers loss of income of at least 20 percent.

b) Benefit period is the time period for which the benefit of the insurance will be available to the insurer.

c) Elimination period is the time period between the beginning of the disability or the date of the injury and the receipt of the benefit from the disability insurance.

d) Waiver of premium is the provision of a disability insurance where the insurance company will not collect premium if it considers that the disability is serious.

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

Keith has a Disability income insurance policy that pays 60% of pre-disability income after a 6-month elimination period.
Keith has a Disability income insurance policy that pays 60% of pre-disability income after a 6-month elimination period. Keith’s pre-disability wage is $56,000 annually.a. What will be the tax treatment of the benefits received if Keith had paid all of the premiums himself?b. What would be the tax treatment if Keith’s employer had paid all of the premiums?
10. Disability income insurance provisions and costs Answer the following questions about the provisions and options...
10. Disability income insurance provisions and costs Answer the following questions about the provisions and options available for disability income insurance. Selecting a Disability Income Insurance Plan Degree of disability Brian loves his job, and, if he becomes disabled, doesn’t want to do any other job. Yet, he’ll need an income. Even though it will cost him more, he will buy ________ disability policy. The cost is more because the insurer has __________ flexibility when determining if the insured is...
The amount of the monthly income benefit a policyowner receives under a disability income benefit is...
The amount of the monthly income benefit a policyowner receives under a disability income benefit is typically expressed as a percentage of the life insurance coverage flat amount, regardless of the amount of life insurance coverage percentage of the insured’s monthly income from his occupation dollar amount per $1,000 of life insurance coverage
Deductibles are not used in which of the following type of insurance? disability income insurance property...
Deductibles are not used in which of the following type of insurance? disability income insurance property insurance health insurance life insurance
7. Which the following statements concerning disability insurance is correct? a. Benefits from a disability income...
7. Which the following statements concerning disability insurance is correct? a. Benefits from a disability income insurance policy are a function of the insured's health, gender, age, and the level of income of the insured. B. To qualify for disability income, one must become totally disabled while the policy is in force elimination (exclusion) period has ended. C.A policy that integrates with Social Security will increase payable benefits by the amount of Social Security the disabled person is eligible to...
A disability income insurance policy on which premiums are paid weekly must have a grace period...
A disability income insurance policy on which premiums are paid weekly must have a grace period of at least seven days. ten days. thirty-one days. there is no grace period on weekly premium policies.
a. Which of the following statements is true regarding disability income insurance? why?
a. Which of the following statements is true regarding disability income insurance? why?A.Increasing the elimination period reduces the premium for disability income insuranceB.Disability income insurance usually replaces 100 percent of lost incomeC.A uniform definition of disability appears in all disability income policiesD.The purchase of disability income insurance is not necessary if you are covered under workers compensationb. Under many cafeteria plans, employees make premium contributions with pre-tax dollars and a salary reduction that are used to purchase group health insurance...
( ) is the type of insurance most closely associated with torts? A. disability insurance B....
( ) is the type of insurance most closely associated with torts? A. disability insurance B. liability insurance C. vicarious insurance D. business interruption insurance
Explain the concept of disability in the worker’s compensation system, short or long term disability insurance,...
Explain the concept of disability in the worker’s compensation system, short or long term disability insurance, and social security disability. What are the similarities among the three and what are the important differences among them. Illustrate your answers with examples.
Explain the concept of disability in the worker’s compensation system, short or long term disability insurance,...
Explain the concept of disability in the worker’s compensation system, short or long term disability insurance, and social security disability. What are the similarities among the three and what are the important differences among them. Illustrate your answers with examples
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT