Sven was recently quoted on a disability policy with an any occupation definition of disability. Sven does want to buy disability coverage, however, the premium was more than he was willing to pay. Sven has some savings built up as an emergency fund and manages his cash flow quite well, so he knows what premium he can afford without impacting his standard of living. What change could Sven consider that would reduce his premium but allow for coverage to continue to meet his objective? a) He could increase the elimination period of the policy b) He could increase the length of his benefit period. c) He could change the definition to own occupation. d) He could decrease the waiting period.
Sven was recently quoted on a disability policy with an any occupation definition of disability. Sven does want to buy disability coverage, however, the premium was more than he was willing to pay. Sven has some savings built up as an emergency fund and manages his cash flow quite well, so he knows what premium he can afford without impacting his standard of living. What change could Sven consider that would reduce his premium but allow for coverage to continue to meet his objective? a) He could increase the elimination period of the policy b) He could increase the length of his benefit period. c) He could change the definition to own occupation. d) He could decrease the waiting period.
Chapter9: Obtaining Affordable Housing
Section: Chapter Questions
Problem 5FPC
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Transcribed Image Text:Sven was recently quoted on a disability policy with an any occupation definition of
disability. Sven does want to buy disability coverage, however, the premium was
more than he was willing to pay. Sven has some savings built up as an emergency
fund and manages his cash flow quite well, so he knows what premium he can afford
without impacting his standard of living.
What change could Sven consider that would reduce his premium but allow for
coverage to continue to meet his objective?
a) He could increase the elimination period of the policy
b) He could increase the length of his benefit period.
c) He could change the definition to own occupation.
d) He could decrease the waiting period.
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