Life & Health Insurance Practice Exam

Which provision qualifies an insured for full disability benefits regardless of their ability to work?

1. Future Increase Option

2. Presumptive Disability

3. Garmented Insurability Rider

4. Cost of Living Adjustment

The correct answer is: Presumptive Disability

The provision that qualifies an insured for full disability benefits regardless of their ability to work is referred to as presumptive disability. This provision recognizes certain specific impairments that are considered so severe that they automatically qualify the insured for total disability benefits. This typically includes conditions such as the loss of sight in both eyes, loss of hands or feet, or other specified catastrophic conditions. The intent behind this provision is to ensure that individuals who suffer from these serious impairments receive the financial support they need without having to prove their inability to work. On the other hand, the future increase option allows insured individuals to increase their coverage amounts without undergoing additional medical underwriting, but it does not directly address the criteria for qualifying for benefits. The garmented insurability rider relates to maintaining insurability when significant medical conditions occur, which does not pertain to disability benefits directly. The cost of living adjustment rider, while it adjusts benefits over time to keep pace with inflation, does not affect the initial qualification for disability benefits.