M7- D.I.

Question 0

Explain non-cancellable and guaranteed renewable, guaranteed renewable and cancellable disability contracts?

Answer 0

Non-cancellable and guaranteed renewable(Non-Can) - The policy is guaranteed to be renewed until the insured reaches the age of 65
The insurer cannot:
- increase the premiums
- cancel the policy
- add restrictive riders
- reduce benefits

Guaranteed renewable- guaranteed to be renewable until age 65
- policy will remain the same with each renewal, but premiums can be increased if the rating for the class of the insured shows a higher claim experience

Cancellable(Commercial policy):

• can be cancelled
• premiums increased
• benefits reduced
• riders imposed by insurer at renewal when policy is issued on a “class” basis

Question 1

Explain the purpose of disability income insurance?

Answer 1

To provide a steady monthly income to those who are unable to work due to an accident or sickness

Question 2

Describe:

• Waiver of premiums
• Presumptive disability
• Supplemental/Optional benefits available with disability income insurance policies

Answer 2

Waiver of Premiums:
- At the end of the waiting period(3months), the insurance takes on…

Presumptive Disability:

• Loss of use of limbs, sight, hearing or speech
• Full benefits payable until end of the benefit period or for life, regardless whether or not the person can return to work

Question 3

Describe Partial disability benefits?

Answer 3

It pays a predetermined percentage of the total disability benefit(usually 50%), and the benefit is paid to a max number of months

Question 4

Describe residual disability benefits?

Answer 4

• Insured is unable to work full-time, but able to work part-time
• Benefits will be reduced proportionately to the % of Part-time work

Question 5

Describe Future purchase option benefits?

Answer 5

Future purchase option(FPO) or Future income option(FIO):

• able to increase your monthly income protection, to keep pace with your growing income with no evidence of insurability
• must be exercised before the age of 50

Question 6

Describe Cost of Living(C.O.L.A.) benefits?

Answer 6

Cost of Living(C.O.L.A.):

- allows insured to increase benefits by a predetermined percentage without having to pay more for premiums

Question 7

What does Extended Health care policy include?

Answer 7

• Semi private or private hospital rooms
• Ambulance services
• Prescription drugs
• private duty nursing
• medical appliances, I.e. Back braces and artificial limbs
• Diagnostic services

Question 8

What is the Travel assistance policy?

Answer 8

It pays for health care services required outside the province that are not paid for by the provincial plan

Basic plan consists of:

• Repatriation
• Transfers to hospitals
• Any required travel by family members or companions
• assistance such as translation services

Question 9

What does the prescription drugs policy consist of?

Answer 9

2 types:

1. Reimbursement plan: insured pays for drugs and gets reimbursed
2. Pay direct plan: drug insurance plan card is used to pay for drugs

Question 10

What does the Dental plan policy consist of?

Answer 10

Basic:

• Examinations
• Consultations
• x-rays
• diagnostic procedures
• polishing
• fillings and anesthesia

Additional:

• endodontocs
• periodontic
• restorative
• prosthodontic
• orthodontics

Question 11

What does the Accidental Death and Dismemberment policy consist of?

Answer 11

A lump sum benefit is paid when insured dies as a direct result of an accident or suffers qualifying multiple dismemberments

Question 12

What does Critical Illness insurance cover?

Answer 12

• Cancer
• Heart attack
• Heart By-pass
• Stroke

Question 13

What does Long-Term care insurance cover?

Answer 13

• home health care
• chronic care I.e. Nursing home
• medical equipment
• respite care
• hospice care
• adult day care