What is a key feature of a residual disability income policy?

Study for the AD Banker Life and Health Exam. Utilize flashcards and multiple choice questions, each with hints and explanations. Prepare effectively for your test!

A residual disability income policy is designed to provide benefits to individuals who can return to work but are still experiencing a loss of income due to their disability. This type of policy recognizes that many people may not return to their previous level of earnings even after resuming work, due to reduced capacity or ongoing limitations from their original disability.

By offering continuing benefits after the insured returns to work, the policy supports individuals in transitioning back into the workforce while also addressing the financial impact of their ongoing challenges. This feature is particularly crucial for those who may not be able to return to their original employment or full-time work but can still engage in part-time work or alternative roles.

The other options do not accurately reflect the essence of a residual disability income policy. For instance, a fixed benefit regardless of work status does not capture the policy's focus on providing support based on income loss rather than simply being disabled. Similarly, benefits provided only for complete disability would limit the policy's utility for those partially disabled who can still work. Lastly, requiring evidence of insurability for full benefits is more about the underwriting process rather than the unique features and benefits of this specific type of policy.

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