1. Can the financial effect on the family be greater for a disability than for death? Why or why not?

2. What are the possible sources of disability income?

3. Which of the following statements concerning the federal income tax treatment of employer-provided disability income insurance under a typical noncontributory plan is correct?

A. Employer contributions for disability income insurance result in taxable income to the employee.

B. Contributions by an individual employee for disability income insurance coverage are tax deductible up to $1,125 per year.

C. Employer contributions for an employee's disability income insurance are fully deductible to the employer as an ordinary and necessary business expense.

D. Benefits paid to an employee under a noncontributory plan are received income tax free.

4. Which of the following statements concerning group long-term disability income insurance is correct?

A. Disability is usually defined in terms of the inability to perform each and every duty of one's own occupation.

B. Long-term plans usually cover only non-occupational disability.

C. A waiting period of 3 to 6 months is typically required before benefits are payable.

D. The maximum monthly benefit is usually equal to 100% of the employee's normal earnings.

5.Define and explain residual disability benefits.

6. All of the following statements concerning individual disability income policy premiums is (are) correct, EXCEPT:

A. Premiums are based on the policyowner's age at the time of policy issue.

B. Most policies contain some type of waiver-of-premium provision.

C. Policies contain a 31-day grace period for late premium payments.

D. Premiums increase each year over the period of coverage