Disability income insurance
Disability questions are mostly about definitions and timing, and they are heavily scenario-based: you are given a situation and must decide what is payable and when.
| Elimination period | A deductible measured in time — runs from the start of disability |
| Probationary period | Runs from policy issue, not from disability — the classic distractor |
| Residual disability | Pays proportionally to lost income |
| Business overhead expense | Pays business fixed costs, never the owner's own income |
| Benefit taxation | Employer-paid premiums make benefits taxable; individually paid premiums make them tax-free |
Where the point is lost: Elimination versus probationary period is the distinction that decides the most disability questions. One starts when you get sick, the other when you bought the policy.
Disability income insurance
12 questions on disability income, each with an explanation and statute citation.
12 questions
Pass line: 70%, same as the real exam