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Benefits Beginner: Disability Insurance

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1.
Long-term disability benefits typically kick in when _______.
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The waiting period specified in the policy expires.
2.
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.
3.
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.
4.
Disability insurance benefits are usually offered only through age _______.
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65. After age 65, Social Security coverage becomes available.
5.
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.