When you shopped for a disability income insurance plan, the likelihood of finding a plan that...

When you shopped for a disability income insurance plan, the likelihood of finding a plan that would pay 95% of your gross income was ___?

A. About 50/50

B.Very Likely

C.Very Unlikely

Expert Solution

Answer: C. Very unlikely.

Disability income insurance is designed to replace between 45% and 65% of the insured's gross income on a tax-free basis.A typical disability income insurance benefit is 60% of pre-disability income.

jeff jeffy answered 2 years ago

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...

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

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?

Describe the taxation of disability insurance benefits. Under what circumstances are disability benefits tax-free? When are...

Describe the taxation of disability insurance benefits. Under what circumstances are disability benefits tax-free? When are disability benefits taxable?

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...

Albert was injured and received payments under his disability income insurance policy. The insurance company...

Albert was injured and received payments under his disability income insurance policy. The insurance company paid him $2,000 per month for six months and then $1,200 per month after that time. Based on this information, what provision is most likely contained in Albert’s policy? Split definition of disability A six month elimination period Residual disability D. Presumptive disability

Disability income is

Disability income istax-free if you pay the disability insurance premiums.taxed at the long-term capital gains rate.taxed as ordinary income.taxed at the short-term capital gains rate.

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

Beyond Social Security Disability Insurance, should the government mandate disability coverage by employers or provide disability...

Beyond Social Security Disability Insurance, should the government mandate disability coverage by employers or provide disability coverage to all citizens? Why or why not? What about Long-Term Care Insurance? How should employers look at offering LTC Insurance among a comprehensive benefits package?

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...

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