Understand how disability insurance protects income: test your skills
Your ability to earn is often your biggest asset. Disability insurance replaces part of your income if illness or injury stops you working. Answer each question to see the explanation; your score appears at the end.
This test checks that you can
- Explain short- and long-term disability cover
- Read the key policy terms
- Check workplace coverage gaps
- Practice
1. The elimination period is…
- Practice
2. “Own occupation” coverage pays if you…
- Practice
3. Employer-paid group benefits are often…
- Key idea
4. Which statement best explains "Earning power is an asset"?
- Key idea
5. Which statement best explains "Definitions decide payouts"?
- Key idea
6. Which statement best explains "Savings bridge the wait"?
- Action plan
7. In the action plan, which step comes first?
- Mistake to avoid
8. Which of these is a mistake this lesson warns against?
- Mistake to avoid
9. Which of these is a mistake this lesson warns against?
Gross income $5,000 a month. A policy pays 65%. What is the monthly benefit before any tax?
Show the answer
$3,250
$5,000 × 0.65 = $3,250.
Find your workplace disability policy and note its benefit percentage and elimination period.
More tests in this bootcamp
- Compare term and whole life insurance by the need
- Understand how disability insurance protects income
- See where umbrella liability insurance fits
- Understand what a will and living trust each do
- Choose who can act with powers of attorney
- Plan college savings with a 529 account
- Teach money skills with small choices and visible goals
- Final exam: Protection and estate planning