If Tom Is a Technology Consultant and Wants to Purchase

question 35

Multiple Choice

If Tom is a technology consultant and wants to purchase reliable long term disability insurance coverage that is cost effective for him, which would be the best choice?

• A)Own occupation
• B)Any occupation
• C)Regular occupation to age 65
• D)Own occupation to age 65

---

Definitions:

Cash Paid

The total amount of cash disbursed by a company for various purposes, such as operating expenses, purchasing assets, or debt repayment.

Premium on Bonds Payable

The amount by which the cash received from issuing bonds exceeds their face value, signifying an interest rate lower than the market rate.

Adjunct Liability Account

An account that is associated with a liability and increases its amount, unlike a contra liability account which reduces it.

Call Option

A financial contract giving the buyer the right but not the obligation to buy an asset at a specified price within a certain period.