What does a Guaranteed Insurability rider provide a Disability Income policyowner? A Guaranteed Insurability rider
allows the insured to periodically increase the amount of benefits payable under the policy
. A CEO's personal assistant suffered injuries at home and as a result, was unable to work for four months.
What is the purpose of the guaranteed insurability rider in a Disability Income policy?
The guaranteed insurability rider (GIR)
allows the insured to buy additional disability income coverage without proving evidence of insurability
. The insured is usually eligible to purchase additional coverages at certain ages specified in the policy, or upon life events, such as marriage or the birth of a child.
What does a guaranteed insurability rider provide?
A guaranteed insurability rider lets
you increase the coverage on your life insurance policy without taking another medical exam
. It is also known as a guaranteed purchase option rider. You will usually pay higher premiums for a policy with this type of rider.
What is a guaranteed insurability policy?
The Guaranteed Insurability Benefit Rider
guarantees the policy owner the right to purchase additional permanent life insurance policies without evidence of insurability
. On each option date specified in the contract, Nationwide will permit the purchase of an additional life insurance policy.
What is the most important factor when deciding how much Disability Income coverage an applicant should purchase?
Applicant's monthly income. (In determining how much Disability Income insurance a prospective insured should purchase, the most important factor to be considered is
the insured's monthly income
.)
A waiver of premium rider is an optional insurance policy clause that waives insurance premium payments if
the policyholder becomes critically ill or disabled
. To purchase a waiver of premium rider you may need to meet certain requirements for age and health.
Which type of disability is less than total impairment?
Permanent disability that is less than total impairment and equal to permanent impairment is the definition of
permanent partial disability
. The elimination period is the time immediately following the start of a disability when benefits are not payable.
Which of the following is true about the Social Security rider in a disability income policy?
All of the following are true regarding the AD&D rider for disability income policies, EXCEPT: A disability income policy may include an AD&D rider that covers accidental injury. … The correct answer is:
The AD&D rider will pay a principal sum for accidental death or loss of one limb
.
Employer and employee each pay 5.3 percent of wages for Social Security's Old-Age and Survivors Insurance and 0.9 percent for Disability Insurance. Thus, the total paid for Disability Insurance is
1.8 percent of taxable wages
.
What is the elimination period of an individual disability policy?
Your individual disability policy's elimination period — also known as the waiting period — is
the span of time between when the disability occurs and when benefits start paying out
. For example, a policy with a 60-day waiting period would not pay benefits for the first 60 days after the insured becomes disabled.
What is the grace period of an insurance policy?
What is an Insurance Grace Period? An insurance grace period is
a defined amount of time after the premium is due in which a policyholder can make a premium payment without coverage lapsing
.
Why would a business owner choose the use of a key person's insurance?
The reason this coverage is important is because the death of a key person in a small company can cause the immediate death of that company. The purpose of key person insurance is
to help the company survive the blow of losing the person who makes the business work
.
What are 5 dividend options?
Use
Dividends to Purchase One-Year Term Insurance
– This so-called “fifth dividend option” allows the policyowner to use the dividends to purchase one-year term insurance at net rates, usually limited to no more than the current cash value on the contract.
Who does a Disability Income policy normally cover?
Disability income (DI) insurance provides benefits to
insureds who are disabled as a result of injury or illness
and cannot perform normal work duties. DI policy premiums typically range between 1.5% and 3% of an insured's gross income.
Which of the following is the most important factor in underwriting Disability Income insurance?
Disability income policies replace income while an insured cannot work; therefore,
Kara's occupation
is the most important factor in underwriting the coverage.
Which type of renewability best describes a disability?
Which type of renewability best describes a Disability Income policy that covers an individual until the age of 65, but the insurer has the right to change the premium rate? “
Guaranteed Renewable”
.
