Disability Income and AD&D Policies
Disability and AD&D items focus on income replacement, elimination periods, benefit periods, occupational definitions, business disability, and accidental loss triggers.
How to study Life & Health
Treat each question as a coverage classification problem: identify the policy type, contract provision, claim sequence, and producer duty.
Core concepts
Concept 1
Disability income insurance replaces a portion of income after a covered disability, subject to definitions and waiting periods.
Exam cue: Find the disability definition before choosing the benefit.
Concept 2
Business disability products can protect overhead expenses, buyout obligations, or key employee exposure.
Exam cue: Separate elimination period from probationary period.
Concept 3
AD&D benefits require accidental death or specified accidental dismemberment rather than sickness or ordinary medical expense.
Exam cue: For AD&D, confirm the loss is accidental and listed.
Risk pitfalls and guardrails
Treating disability income as full wage replacement.
Guardrail: Avoid answers that guarantee coverage, skip disclosure, ignore state timing, or confuse life and health provisions.
Using AD&D for sickness-related claims.
Guardrail: Avoid answers that guarantee coverage, skip disclosure, ignore state timing, or confuse life and health provisions.
Confusing benefit period with elimination period.
Guardrail: Avoid answers that guarantee coverage, skip disclosure, ignore state timing, or confuse life and health provisions.
Memory anchors
Disability Income
Disability income insurance replaces part of earned income after covered disability.
Elimination Period
The elimination period is the waiting period before disability benefits begin.
Benefit Period
The benefit period is how long covered disability benefits can be paid.
Own Occupation
Own occupation focuses on inability to perform the insured's own job duties.
Any Occupation
Any occupation focuses on inability to perform any suitable work.
Residual Disability
Residual disability benefits address partial loss of income after returning to work.
Business Overhead Expense
BOE coverage helps pay business expenses while an owner is disabled.
AD&D
AD&D pays for accidental death or specified accidental dismemberment.
Checkpoint rule
Do the check-up only after you can summarize each concept in one sentence and identify one dangerous pitfall from memory.
Knowledge Check (after reading)
Short check-up to confirm understanding of this module.
Check-up Questions
What is the primary purpose of individual disability income insurance?
Why does disability income insurance usually replace less than 100% of earnings?
Answer all questions to submit.
Next step personalized recommendations
Continue learning
Move forward only after this module is stable.
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