Financial Advisor Insurance Planning for Financial Advisors 2

Question 1

Which definition of disability in a disability income insurance policy is most favorable to the insured?

Accepted Answer

Own occupation definition

Answer

Any occupation definition

Answer

Modified own occupation definition

Answer

Social Security definition of disability

Question 2

In a disability income insurance policy, the 'elimination period' is best described as:

Accepted Answer

The waiting period after disability onset before benefit payments begin

Answer

The maximum period for which benefits will be paid

Answer

The exclusion period for pre-existing medical conditions

Answer

The period during which premiums are waived due to disability

Question 3

Long-term care insurance benefits are typically triggered when the insured is unable to perform a specified number of Activities of Daily Living (ADLs). What is the standard minimum number of ADL impairments required?

Accepted Answer

2 of 6 ADLs

Answer

1 of 6 ADLs

Answer

4 of 6 ADLs

Answer

6 of 6 ADLs

Question 4

Under Medicare, which part covers inpatient hospital stays, skilled nursing facility care, and hospice services?

Accepted Answer

Medicare Part A

Answer

Medicare Part B

Answer

Medicare Part C

Answer

Medicare Part D

Question 5

A Health Savings Account (HSA) can only be opened and funded by individuals enrolled in which type of health plan?

Accepted Answer

A High-Deductible Health Plan (HDHP)

Answer

A Health Maintenance Organization (HMO)

Answer

A Preferred Provider Organization (PPO)

Answer

A Medicare Advantage plan

Question 6

Which employer-sponsored account arrangement uses pre-tax employer dollars to reimburse employees for qualified medical expenses and is owned and controlled by the employer?

Accepted Answer

Health Reimbursement Arrangement (HRA)

Answer

Health Savings Account (HSA)

Answer

Flexible Spending Account (FSA)

Answer

Dependent Care Account (DCA)

Question 7

Long-term care insurance benefits are LEAST likely to cover costs associated with which of the following settings?

Accepted Answer

Acute inpatient hospital stays for surgery

Answer

Assisted living facilities

Answer

Certified nursing facilities (nursing homes)

Answer

Home health aide services