Coverage That Provides a Specific Monthly or Weekly Income When

question 39

Multiple Choice

Coverage that provides a specific monthly or weekly income when a person is unable to work because of an illness or injury is known as

• A) guaranteed income insurance.
• B) disability income insurance.
• C) supplemental insurance.
• D) extended income insurance.

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Definitions:

Salvage Value

The forecasted price an asset will fetch at the time of sale once its period of usefulness is over.

Depreciation Expense

The allocation of the cost of an asset over its useful life to account for declines in value over time.

Double-declining-balance

An accelerated depreciation method that doubles the normal depreciation rate.

Salvage Value

The estimated residual value of an asset at the end of its useful life, representing what it could potentially be sold for or scrapped.