Disability Insurance Quiz

What is the main purpose of disability insurance?

• To provide replacement income if you have an accident or illness and can’t work

• To cover your medical expenses if you have an accident or illness and can’t work

• To provide replacement income and cover all your medical expenses if you have an accident or illness and can’t work

• To provide your family with income when you retire

When should people consider disability insurance?

• When they get married

• When they graduate from college

• When they start a full-time job

• When they retire

Employers must provide all employees with disability insurance free of charge.

• True

• False

Most disability insurance policies will replace:

• 80%–100% of your income

• 60%–80% of your income

• 40%–60% of your income

• 20%–40% of your income

Which of the following are types of disability insurance?

• Short-term, long-term, and indemnity

• Short-term, indemnity, and workers’ compensation

• Long-term, indemnity, and workers’ compensation

• Short-term, long-term, and workers’ compensation

A computer technician is in an accident on his way home from work and breaks both wrists. Which of his insurance plans will provide him with income while he is out of work recovering for six weeks?

• Short-term disability insurance

• Long-term disability insurance

• Workers’ compensation

• Health insurance

Which of the following could require long-term disability insurance to help cover costs?

• A broken leg

• A degenerative disease

• The flu

• None of these

A young woman falls on the ice, hurts her back, needs surgery, and will be out of work for three months. What does she need to do in order to claim the disability insurance she has through her employer?

• Inform her employer only

• Call her doctor and ask him to send her employer a note

• Contact her health insurance company

• Inform her employer and see her doctor to have the doctor confirm that she is not able to work

Social Security administers a disability insurance program that covers most workers and has strict eligibility requirements.

• True

• False

Disability insurance can only be provided through an employer or the government

• True

• False