Thursday, June 16, 2022

Which Statement Best Describes Disability Insurance

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How Does Disability Insurance Work

Disability Insurance | Everything you Need to Know about Protecting your Income

When youâre unable to perform your normal job duties because of an injury, illness, or other condition â whether or not itâs permanent â disability insurance replaces a certain percentage of your gross monthly income. It wonât completely replace your pay, but it provides enough so you can afford food and other necessities without drastically changing your lifestyle.

Like other insurance policies, you pay a monthly premium to keep your disability insurance policy active. If something happens and you cannot work, you file a claim with the insurance company so you can receive a monthly payment, called a benefit amount. The benefit amount varies by type of plan, but it is generally 60% of your gross monthly pay. Benefits will pay out for a certain length of time, called a benefit period. Your benefit period depends on the type of plan you have.

Before you can apply for benefits, you have to go through the policyâs elimination period, also called the waiting period. The elimination period for a short-term disability is typically one or two weeks, and the most common elimination period for a long-term disability is 90 days. Policies with shorter elimination periods are typically more expensive and have higher monthly premiums. Less-expensive policies have longer waiting periods.

Which Of These Best Describes You

Check all of the following that best describes you.

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What Our Clients Say

The Advocator Group made this process so easy for me. When I first spoke with a rep I was told not to worry about anything and to focus on my health. After about 19 months I finally got a hearing. The attorney they provided was fabulous! I was very nervous and she took that away. About 30 minutes into the hearing the judge awarded me my disability. I would recommend them to anyone. Words cannot express how appreciative I am.

The Advocator Group handled all aspects of submitting my case for SSDI. I was approved without any delays with very little effort on my part other than answering questions for the preparation of the application on the telephone. I highly recommend using their services!

I had an outstanding conversation with an advocate who took the time to go through my claim and walk me through each step. She helped me get to the root of the problem I was having, and went above and beyond the call of duty for me. I needed someone to truly listen to me, and this made me want to work with The Advocator Group.

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California Life Insurance Practice Exam A

Practice examination for Life Insurance Licensing in California

  • 1.;In disability insurance, the period of time between when the disability started and the commencement of benefits is the:
  • A.&nbsp
  • Grace Period

  • 2.;Which of the following characteristics would not stop an insurance company from accepting an insurance risk?The item to be insured:
  • A.&nbsp

    Faces high catastrophic loss exposure

  • B.&nbsp

    Is part of a large group of homogeneous exposure units

  • C.&nbsp

    Has a market value difficult to determine

  • D.&nbsp

    Holds no hardship to the owner should it be lost or damaged

  • 3.;All of the following statements about mutual insurance companies are correct, except:
  • A.&nbsp

    If a mutual company goes public, it demutualizes

  • B.&nbsp

    Mutual companies issue policies referred to as participating

  • C.&nbsp

    Policy dividends issued by mutual companies are guaranteed and not taxable

  • D.&nbsp

    Dividends allow policyholders to share in a mutual companies divisible surplus

  • 4.;In a seven year vesting schedule, what percentage of employer contributions is vested after seven years?
  • A.&nbsp
  • Which is a false statement? The California Insurance Commissioner is:
  • A.&nbsp

    Elected by the people of California every four years

  • B.&nbsp

    Selected by the Governor as an appointee

  • C.&nbsp

    Is a representative to the National Association of Insurance Commissioners

  • D.&nbsp

    Capable of becoming the conservator of a financially impaired, or insolvent, insurer

  • 6.;Which statement about life insurance code and ethics is not true?
  • How Do I Get A Doctors Note For Short

    Financial Quiz

    Successfully signed up!

  • Step 1 Get the Claim Form. Ask your HR department for a copy of the form you need to file to claim short-term disability benefits.
  • Step 2 Complete the Form.
  • Step 3 Ask the Employer to Complete Its Section of the Form.
  • Step 4 Physician Validation.
  • Step 5 Submit the Form.
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    Use Credit Wisely And Sparingly

    When possible, pay cash for your purchases using a debit card. One of the most deflating feelings you can experience is looking at your credit card statement each month and seeing the interest rate youâre paying on your balance. If you do use credit cards, pay them off at the end of each month to avoid paying interest on your purchases.

    Guaranteed Standard Issue Disability Insurance

    This is a type of no exam disability insurance that is similar to a group plan. It provides disability insurance to an eligible group of employees on a simplified basis. That means no medical or financial underwriting.

    One of the main differences between guaranteed standard issue disability insurance and group coverage is that GSI is individually owned. Therefore, itâs portable and does not require employment or group membership for the insured to keep the policy.

    GSI coverage is designed for employers with at least five employees. It can be written for most occupation classes.

    Another advantage of GSI compared to group plans is that it often offers benefits based on total compensation, including bonuses. It is often purchased by executives or high-income earners of a company.

    Because there is no underwriting, GSI is an ideal way for employers to offer an employee benefit, especially those who may have pre-existing conditions. It also provides employers the flexibility of paying the cost for employees, having employees pay, or splitting the cost.

    Like standard group coverage, GSI plans typically allow employers to capitalize on major group discounts, making it an affordable option for everyone who participates.

    Also Check: How Does Social Security Disability Insurance Influence Staffing

    Pros And Cons Of No Exam Disability Insurance

    Disability insurance is a worthwhile investment for anybody who earns an income and would suffer major financial consequences if they couldnât work due to injury or illness.

    Disability insurance companies have provided a number of options for people who need this coverage. That includes no exam disability insurance.

    The benefits of no exam disability coverage include:

    • The ability to get coverage without completing a medical exam.
    • Not having to give blood .
    • The ability to qualify for coverage if you have health issues or pre-existing conditions.
    • Often more affordable than standard individual coverage.
    • Faster approval process.

    The downsides of no exam disability coverage include:

    • Shorter benefit periods.
    • Limited benefits, especially to those with high incomes.
    • Limited availability based on the applicantâs age and/or occupation.

    Traditional No Exam Disability Insurance

    What You Need to Know About Disability Insurance

    Most long term disability insurance carriers have special programs that enable applicants to skip the standard medical exam during underwriting. Insurers offer this option to select applicants as a way to save on the cost of conducting an exam and sending samples to a lab.

    These programs are often restricted to certain occupations, benefit amounts, and age limits. For example, an insurance company may only allow an applicant to apply for a monthly benefit amount up to $5,000 without a medical exam. For older applicants, that benefit amount may be reduced.

    Keep in mind, there is still an underwriting process for this type of policy â it just doesn’t include that pesky medical exam. You will still likely have to fill out a health questionnaire, and you may also be required to authorize the release of medical records.

    The application process may also include financial underwriting. This helps determine your overall income for the purpose of establishing a benefit amount.

    A traditional no exam disability insurance policy can be a good option for applicants that aren’t looking for high monthly benefit amounts.

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    Disability Insurance Vs Workers Compensation

    Workersâ compensation is covered entirely by your employer. Unlike disability insurance, you donât need to pay anything for workersâ comp. However, there are two important reasons to consider disability insurance in addition to workersâ comp.

    Disability policies cover you regardless of where or how you sustain an injury but workersâ compensation only covers work-related injuries and illnesses.

    Most disabilities happen off the job and therefore wouldnât be covered by workersâ comp. For example, disability insurance would cover injuries from a car crash if they keep you out of work, but workersâ comp would not cover you unless the accident happened on the job.

    If you sustain an injury at work and receive workersâ compensation, your private disability insurance benefits could be reduced by the amount you receive from workersâ comp.

    In Addition To The Traditional Disability Policies There Are Several Options You Should Consider When Purchasing A Policy:

    • Additional purchase options;Your insurance company gives you the right to buy additional insurance at a later time.
    • Coordination of benefits;The amount of benefits you receive from your insurance company is dependent on other benefits you receive because of your disability. Your policy specifies a target amount you will receive from all the policies combined, so this policy will make up the difference not paid by other policies.
    • Cost of living adjustment ; The COLA increases your disability benefits over time based on the increased cost of living measured by the Consumer Price Index. You will pay a higher premium if you select the COLA.
    • Residual or partial disability rider; This provision allows you to return to work part-time, collect part of your salary and receive a partial disability payment if you are still partially disabled.
    • Return of premium;This provision requires the insurance company to refund part of your premium if no claims are made for a specific period of time declared in the policy.
    • Waiver of premium provision This clause means that you do not have to pay premiums on the policy after youre disabled for 90 days.

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    Social Security Disability Insurance

    Social Security Disability Insurance is provided by the federal government through the Social Security Administration . You are only eligible if you have paid Social Security tax for a certain length of time, but it can be difficult to qualify for Social Security disability insurance benefits.

    Social Security disability insurance has a very strict definition of disability â you must meet the requirements forÂ; total disability . According to the SSA, more than 70% of all disability claims were denied in 2017, and that number has only been increasing over the last several years . Even if you do qualify, it can take nearly two years before you start receiving benefits.Â;

    Social Security disability insurance also doesnât offer enough coverage for most people â the average monthly SSDI payment is 1,146.79 . If your total income is more than $25,000 for the year, you will also have to pay taxes on your benefits. The taxes owed increase depending on your income level .Â;

    Overall, Social Security disability insurance is only a safe bet if you canât afford long-term disability insurance.

    Start Saving For Retirement Now

    Christine Burnside

    No matter how long you have until you retire, whether it be five years or forty-five, itâs not too late to start putting money aside for your retirement years. Of course, itâs best to do this when youâre in your twenties, but sometimes in our early earning years, we donât have the funds for it. No matter how small the amount you can set aside, start now. You can increase the amount as your income grows.

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    This Problem Has Been Solved

    Ted and Gayle, both 47, have been married for 20 years. Gaylehas not worked outside of the home since their marriage while Tedis a cabinet-maker. Gayle helps Ted with the billings for his workand places the orders for the specialty woods and mechanicalfittings used. Ted has a history of strain and injuries to hislower back and right arm. Gayle has arthritis in her knees andcarpal tunnel syndrome in both wrists. Which of the followingstatements BEST describes Ted and Gayle’s prospects concerningdisability insurance coverage?

    a)If Ted and Gayle are in the marketfor a new mortgage, they may be able to obtain Creditor DisabilityInsurance which may be offered with little, or no, medicalunderwriting at the time of application.
    b)Ted will likely be eligible forGuaranteed Issue Disability Insurance given his occupation,while Gayle will not be eligible given her present workstatus.
    c)If insured, Ted will likely payhigher premiums for disability insurance than Gayle would for thesame coverage because historically the number and length of claimsis higher for men than for women.
    d)Ted and Gayle may be able to obtainIndividual Disability Insurance without medical underwriting ifthey apply for basic coverage, but medical underwriting will applyto additional coverage over basic.

    Graduate Student Health Insurance Program

    Life without health insurance carries serious risk to your health, wellness, and personal finances.; To ensure that all graduate students carry adequate health coverage, San Diego State University has introduced the comprehensive Graduate Student Insurance Program . GSHIP expands your coverage options to include an excellent health insurance plan the university has contracted with the insurance carrier Anthem, designed and priced for our graduate student population.;

    The federal Affordable Care Act requires taxpayers and their dependents to carry health insurance. In California, those who have not obtained health care must pay a $750 tax penalty. Beginning with the Fall 2021 semester, all SDSU graduate students will be required to provide proof of ACA-compliant health insurance coverage. Students with existing health insurance through an employer, family member, or any other source are required only to provide evidence of coverage once per year.;

    Dedicated SDSU staff are available to counsel students without health care coverage , and provide advice on selecting among a range of health insurance options. Those struggling to afford any of the available options may be eligible for financial support from SDSU ECRT.

    If you are an SDSU graduate student, consider which of the following best describes your situation:

    1. ;;I already have good health insurance and am not interested in switching to an SDSU plan.;

    2021-2022 Plan Information

    Dental and Vision add-on plans are also available.

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    The Types Of Disability Insurance

    There are three main kinds of disability insurance: short-term disability insurance , long-term disability insurance, and Social Security Disability Insurance. Each type of disability insurance provides essentially the same service, but there are differences in the cost of a policy, the benefit period, and where you can apply for a policy. Certain states also offer their own disability benefits.

    Individual policies available from carriers; employer-sponsoredProvided by the U.S. government

    Create And Stick To A Monthly Budget

    Disability Insurance Claims Is What Our Lawyers Do

    Financially secure individuals sit down at the beginning of each month, analyze their income, and plan their expenditures accordingly. Several times during the month, they evaluate where theyâre at with their budget and make any necessary adjustments. Budgeting like this not only is smart financial management, but it gives you a sense of control over your finances, which is good for your financial wellness.

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    Disability Income Insurance Waiting Period

    Typically, disability income insurance policies contain a specific monthly benefit amount . Unless stated in the policy language, DI policies do not coordinate with Social Security benefits but pay in addition to it. And, of course, as the monthly benefit amounts increases, higher premiums are assessed. Most companies will not issue a policy with benefits that amount to more than 60% of an individual’s gross income.

    Most insurance companies provide plans that carry a maximum benefit period of two, three, five, or 10 years. Once again, the price increases to purchase an extended benefit period.;

    Disability Income insurance policies have a;waiting or elimination period before being able to receive benefit payments. This period is usually 30-days from the date of coverage and may vary by provider and policy. Another critical consideration for disability income policies is that the benefit payments do not begin immediately after the filing of an injury or illness claim. Again, this will vary by provider and policy type, but most will require a waiting period of 30 to 45 days before the first benefit payment processes.

    Social Security And Retirement

    Jeff is committed to ensuring financial security for Oregon’s retirees. If you or someone you know is seeking assistance with regard to Social Security or retirement, Jeff’s office stands ready to answer your questions and help resolve your issue.

    Please select one of the following links that best describes the help you are seeking. Youll be directed to another page with an online form. Please fill out the online form and then print the corresponding privacy release. Send your completed privacy release to our Portland office, and a member of Jeff’s Constituent Services Team will get back to you to discuss how we can best help you.

    You will need Adobe Acrobat Reader in order to generate and print out the privacy release for your signature. If you are unable to print this privacy release form, please call my Portland office after completing the online form. We will be happy to mail you a paper copy of a privacy release form for you to use.

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