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Benefits Beginner: Disability Insurance

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1.
Disability insurance is designed to replace 100 percent of your income if you can't work due to illness or injury.
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False. It is designed to replace somewhat less than 100 percent.
2.
If you purchase individual disability insurance, you must pay taxes on your benefits.
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False. However, benefits from an employer-funded policy are taxable.
3.
The financial condition of disability insurance companies is an important factor in choosing an insurer.
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True. Their financial state determines their ability to pay benefits.
4.
Group insurance disability insurance premiums are generally cheaper than individually purchased policies.
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True. Collective rates are usually less expensive than individual rates.
5.
Before an insurance company will accept your disability insurance policy application, you must _______.
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Pass a physical. The physical is the first step in the process of being accepted.