Which of the Following Statements About Individual Disability Income Policies

question 26

Multiple Choice

Which of the following statements about individual disability income policies is true?

• A)Benefits are typically paid only for disabilities resulting from sickness.
• B)Benefits paid for partial disabilities are usually greater than benefits paid by the same policy for total disabilities.
• C)Most policies pay a benefit equal to 100 percent of the disabled person's lost income.
• D)Many policies provide or make available a residual disability benefit for persons who are able to work but at a reduced income.

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Definitions:

Elastic Supply

characterizes a market situation where the quantity supplied changes significantly in response to changes in price.

Tax Burden

The total amount of taxes imposed on an individual, corporation, or other entity by the government, often expressed as a percentage of income.

Ceteris Paribus

A Latin phrase meaning 'all other things being equal', used in economics to isolate the effect of one variable change.

Payroll Taxes

Levies placed on both employers and employees, determined by a portion of the wages that businesses disburse to their workforce.