Which of the Following Statements Is Not True of Disability

question 62

Multiple Choice

Which of the following statements is not true of disability insurance?

• A) You should have it even if you are retired and living on a pension.
• B) The amount of coverage should equal your disposable income.
• C) If you are self-employed you should have disability insurance.
• D) All of the above are true of disability insurance.

---

Definitions:

Operating Lease

A contract that allows for the use of an asset but does not convey rights of ownership of the asset.

Owns the Asset

Refers to having legal title or right to possession of an asset, implying control over its use and the benefits it produces.

Lessee

The party in a lease agreement who pays the lessor for the use of an asset.

Lessor

The party in a lease agreement who owns the leased asset and grants the lessee the right to use that asset in exchange for periodic lease payments.