All of the Following Statements About Optional Disability Income Benefits

question 21

Multiple Choice

All of the following statements about optional disability income benefits are true EXCEPT

• A)Under a cost-of-living rider,benefits are periodically adjusted for inflation.
• B)A Social Security rider pays additional benefits if the insured is turned down for Social Security disability benefits.
• C)Adding a return of premium rider results in a lower initial premium.
• D)Under an option to purchase additional insurance,the insured has the right to buy additional insurance at specified times without evidence of insurability.

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Definitions:

Income Classes

Categories of individuals or households distinguished by levels of income, such as low, middle, and high income.

Marginal Utility

The surplus satisfaction or benefit gained by consuming another unit of a good or service.

Total Utility

The overall satisfaction or value that a consumer derives from consuming a particular quantity of goods and services.

Income Redistribution

Economic policies or mechanisms aimed at leveling the distribution of wealth or income in a society by transferring money from the richer sections to the poorer ones.