Question 1

The best disability plans pay you if you are not able to work at any job, not just your regular job.

Accepted Answer

A) True 
 B)False  False

Question 2

You must have Parts A and B of Medicare in order to qualify for Part D.

Accepted Answer

A) True 
 B)False  True

Question 3

Compared to indemnity plans, managed health care plans impose more restrictions on the specific health care providers.

Accepted Answer

A) True 
 B)False  True

Question 4

How much of a $2,000 medical bill would you pay if your policy contains a $400 deductible and a 10% coinsurance clause?

Accepted Answer

A)  $200 
B)  $400 
C)  $160 
D)  $560 
A)  $200 
B)  $400 
C)  $160 
D)  $560

Question 5

Tom purchased disability insurance that will provide $1,400 per month in benefits. His employer carries a disability policy on Tom that will provide an additional $600 per month in benefits. If Tom's monthly budget is $2,500 and Tom is anticipating no additional disability benefits from any other source, what is Tom estimating as his work-related monthly expenditures.

Accepted Answer

A)  $500 
B)  $600 
C)  $2,000 
D)  $2,500 
A)  $500 
B)  $600 
C)  $2,000 
D)  $2,500

Question 6

Long-term care policies

Accepted Answer

A)  commonly have an elimination period (waiting period) of between 60 and 90 days before the policies will begin to pay. 
B)  are relatively inexpensive and are a good value for those over 60. 
C)  are never adjusted for inflation, so care must be taken to estimate future costs. 
D)  All of the above are true. 
A)  commonly have an elimination period (waiting period) of between 60 and 90 days before the policies will begin to pay. 
B)  are relatively inexpensive and are a good value for those over 60. 
C)  are never adjusted for inflation, so care must be taken to estimate future costs. 
D)  All of the above are true.

Question 7

Which of the following statements regarding health insurance is not true?

Accepted Answer

A)  It limits your potential liabilities and helps you receive the necessary medical care. 
B)  Health insurance is offered by private insurance companies and the government. 
C)  There are many more options available for homeowner's insurance than for health insurance. 
D)  Blue Cross and Blue Shield is the nation's largest health care insurer. 
A)  It limits your potential liabilities and helps you receive the necessary medical care. 
B)  Health insurance is offered by private insurance companies and the government. 
C)  There are many more options available for homeowner's insurance than for health insurance. 
D)  Blue Cross and Blue Shield is the nation's largest health care insurer.

Question 8

What could happen to you if you had a serious health problem and no health insurance?

Accepted Answer

Health services are limited for those wi

Question 9

Disability insurance policies usually cover

Accepted Answer

A)  actual expenses incurred. 
B)  a minimum dollar amount. 
C)  a percentage of your income before you were disabled. 
D)  Any of the above. 
A)  actual expenses incurred. 
B)  a minimum dollar amount. 
C)  a percentage of your income before you were disabled. 
D)  Any of the above.

Question 10

The managed health care plan with higher costs, but a greater choice of health care providers is the ________.

Accepted Answer

The answer of The managed health care plan with higher...

Question 11

The definition of disability can be defined as all of the following, except

Accepted Answer

A)  you are unable to perform the duties required of your occupation. 
B)  you cannot perform the duties of any job that fits your education and experience. 
C)  you are unable to perform the duties of your job due to a work-related injury. 
D)  you are unable to do your job for an initial period. 
A)  you are unable to perform the duties required of your occupation. 
B)  you cannot perform the duties of any job that fits your education and experience. 
C)  you are unable to perform the duties of your job due to a work-related injury. 
D)  you are unable to do your job for an initial period.

Question 12

Social Security is the easiest disability coverage to qualify for benefits.

Accepted Answer

A) True 
 B)False

Question 13

One disadvantage of a flexible spending account is that

Accepted Answer

A)  the amount is not subject to federal, state or local taxes. 
B)  unused funds in the FSA over the amount of $500 cannot be rolled over into the next year. 
C)  funds are available to pay for out-of-pocket medical expenses. 
D)  it allows you to budget for uncovered medical expenses. 
A)  the amount is not subject to federal, state or local taxes. 
B)  unused funds in the FSA over the amount of $500 cannot be rolled over into the next year. 
C)  funds are available to pay for out-of-pocket medical expenses. 
D)  it allows you to budget for uncovered medical expenses.

Question 14

Medicaid is health insurance for people with low income and is administered by each state within certain broad federal requirements and guidelines.

Accepted Answer

A) True 
 B)False

Question 15

Based on the following information, how much disability insurance coverage per month would be required: • Mortgage payment -$1,600/month
• Household insurance -$100/month
• Car insurance -$200/month
• Gas and oil -$90/month ($30 commuting to and from work)
• Food -$200/month ($70 represents lunch at work which would be reduced by half if the meals were prepared at home)
Employer disability insurance would provide $500/month and it is doubtful that anything would be received from either Social Security or worker's compensation.

Accepted Answer

A)  $1,525 
B)  $2,190 
C)  $1,495 
D)  $1,625 
A)  $1,525 
B)  $2,190 
C)  $1,495 
D)  $1,625

Question 16

The Affordable Care Act allows young adults to continue on a parent's health insurance plan until age 19, at which time they must obtain their own coverage.

Accepted Answer

A) True 
 B)False

Question 17

Since health insurance is expensive,

Accepted Answer

A)  most employers pay for the entire cost as an employee benefit. 
B)  employees are usually required to pay the entire cost of the insurance. 
C)  the employer and employee typically share the cost of the health insurance. 
D)  the government along with the employer helps to subsidize employee health insurance costs. 
A)  most employers pay for the entire cost as an employee benefit. 
B)  employees are usually required to pay the entire cost of the insurance. 
C)  the employer and employee typically share the cost of the health insurance. 
D)  the government along with the employer helps to subsidize employee health insurance costs.

Question 18

Buying health insurance through employer-sponsored plans is somewhat more expensive than buying your own policy individually.

Accepted Answer

A) True 
 B)False

Question 19

Since most workers have employer-sponsored disability coverage and are also eligible for Social Security and worker's compensation, there is very little demand or need for individual disability insurance.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is not true about disability insurance?

Accepted Answer

A)  Employer paid disability insurance policies continue in force after you have separated from the employer. 
B)  Disability insurance protects your net worth. 
C)  Private disability insurance pays over and above social security disability should you become disabled. 
D)  A, B and C are all true. 
A)  Employer paid disability insurance policies continue in force after you have separated from the employer. 
B)  Disability insurance protects your net worth. 
C)  Private disability insurance pays over and above social security disability should you become disabled. 
D)  A, B and C are all true.

The best disability plans pay you if you are not able to work at any job, not just your regular job.

You must have Parts A and B of Medicare in order to qualify for Part D.

Compared to indemnity plans, managed health care plans impose more restrictions on the specific health care providers.

How much of a $2,000 medical bill would you pay if your policy contains a $400 deductible and a 10% coinsurance clause?

Long-term care policies

Which of the following statements regarding health insurance is not true?

What could happen to you if you had a serious health problem and no health insurance?

Disability insurance policies usually cover

The managed health care plan with higher costs, but a greater choice of health care providers is the ________.

The definition of disability can be defined as all of the following, except

Social Security is the easiest disability coverage to qualify for benefits.

One disadvantage of a flexible spending account is that

Medicaid is health insurance for people with low income and is administered by each state within certain broad federal requirements and guidelines.

The Affordable Care Act allows young adults to continue on a parent's health insurance plan until age 19, at which time they must obtain their own coverage.

Since health insurance is expensive,

Buying health insurance through employer-sponsored plans is somewhat more expensive than buying your own policy individually.

Since most workers have employer-sponsored disability coverage and are also eligible for Social Security and worker's compensation, there is very little demand or need for individual disability insurance.

Which of the following is not true about disability insurance?

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

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Exam 12: Health and Disability Insurance

The best disability plans pay you if you are not able to work at any job, not just your regular job.

You must have Parts A and B of Medicare in order to qualify for Part D.

Compared to indemnity plans, managed health care plans impose more restrictions on the specific health care providers.

How much of a $2,000 medical bill would you pay if your policy contains a $400 deductible and a 10% coinsurance clause?

Long-term care policies

Which of the following statements regarding health insurance is not true?

What could happen to you if you had a serious health problem and no health insurance?

Disability insurance policies usually cover

The managed health care plan with higher costs, but a greater choice of health care providers is the ________.

The definition of disability can be defined as all of the following, except

Social Security is the easiest disability coverage to qualify for benefits.

One disadvantage of a flexible spending account is that

Medicaid is health insurance for people with low income and is administered by each state within certain broad federal requirements and guidelines.

The Affordable Care Act allows young adults to continue on a parent's health insurance plan until age 19, at which time they must obtain their own coverage.

Since health insurance is expensive,

Buying health insurance through employer-sponsored plans is somewhat more expensive than buying your own policy individually.

Since most workers have employer-sponsored disability coverage and are also eligible for Social Security and worker's compensation, there is very little demand or need for individual disability insurance.

Which of the following is not true about disability insurance?

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

Filters