CARD Q085
After an illness, an insured returns to work with reduced earnings. Which benefit is specifically designed to address a qualifying income loss from partial disability?
- Residual disability benefit
- Waiver of premium rider
- Presumptive disability benefit
- Recurrent disability provision
Residual disability benefit
Residual benefits commonly relate to the percentage of income lost. The policy controls the qualifying loss and calculation.
Why each choice is right or wrong
A. Residual disability benefit
Correct. Residual benefits commonly relate to the percentage of income lost. The policy controls the qualifying loss and calculation.
B. Waiver of premium rider
Incorrect. Premium waiver relieves eligible premiums rather than directly replacing partial lost earnings.
C. Presumptive disability benefit
Incorrect. Presumptive benefits depend on specified losses, not simply reduced earnings.
D. Recurrent disability provision
Incorrect. Recurrent disability addresses a return of disability and related waiting-period treatment.
Review the related terms
Use these lessons to revisit the concepts and try additional practice questions.