Which of the Following Statements Is True Regarding Disability Income

question 1

Multiple Choice

Which of the following statements is true regarding disability income insurance?

• A)The purchase of disability income insurance is not necessary if you are covered under workers compensation.
• B)Increasing the elimination period reduces the premium for disability income insurance.
• C)Disability income insurance usually replaces 100 percent of lost income.
• D)A uniform definition of disability appears in all disability income policies.

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Definitions:

Technology Improvement

Enhancements or advancements in technology that increase productivity, efficiency, and capabilities within industries or society.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity thereof that producers are willing to supply.

Alternative Good

A product or service that consumers may choose as a substitute for another good or service.

Quantity Supplied

The amount offered for sale per period at a particular price, as reflected by a point on a given supply curve.