Understanding Business
Understanding Business
12th Edition
ISBN: 9781259929434
Author: William Nickels
Publisher: McGraw-Hill Education
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As an incentive for disabled workers to return to work as soon as possible, many Di policies offer a residual disability
benefit, one that will pay the disabled a portion of his benefits if he is able to work part-time following a period of total
disability. Which of the following conditions need to be met for this benefit to apply?
1. There has to be a minimum period of total disability under the contract, often six months, including the waiting
period. 4
2. There are minimum and maximum income requirements for an insured to qualify for residual benefits normally
20%.
3. If the insured earns 60% of his pre-disability income, he will receive no benefit
4. If the insured only earns 20% or less of his pre-disability income, he will qualify for full benefits.
5. Earnings between 20 % and 60% of pre-disability income will result in a pro-rata benefit, proportional to the
percentage of income lost to disability.
Select one:
1,2,3 & 4
b.
1,2 & 4
Oc
1,2,4&5
d.
2,3,4 & 5
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Transcribed Image Text:As an incentive for disabled workers to return to work as soon as possible, many Di policies offer a residual disability benefit, one that will pay the disabled a portion of his benefits if he is able to work part-time following a period of total disability. Which of the following conditions need to be met for this benefit to apply? 1. There has to be a minimum period of total disability under the contract, often six months, including the waiting period. 4 2. There are minimum and maximum income requirements for an insured to qualify for residual benefits normally 20%. 3. If the insured earns 60% of his pre-disability income, he will receive no benefit 4. If the insured only earns 20% or less of his pre-disability income, he will qualify for full benefits. 5. Earnings between 20 % and 60% of pre-disability income will result in a pro-rata benefit, proportional to the percentage of income lost to disability. Select one: 1,2,3 & 4 b. 1,2 & 4 Oc 1,2,4&5 d. 2,3,4 & 5
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