Disability Insurance Assessment

1. A non-work illness keeps you off work for four months. What replaces part of your lost pay?
- A) Health insurance
- B) Workers' compensation
- C) Disability insurance
- D) Homeowners insurance
Practice: you’ve seen the answer to both versions of this question, so it won’t change your Insurance IQ.
Explanation: Health insurance pays for treatment and workers' comp covers only work-related injuries. Disability insurance replaces part of your income.
Review: Do You Need Disability Insurance? How to Tell if Your Income Is Protected
1. Who is most likely to have no workplace disability coverage?
- A) A self-employed freelancer
- B) A federal employee
- C) A worker at a large company
- D) A union member
Practice: you’ve seen the answer to both versions of this question, so it won’t change your Insurance IQ.
Explanation: Freelancers and the self-employed usually have no workplace coverage, so an individual policy is their main option.
Review: Do You Need Disability Insurance? How to Tell if Your Income Is Protected
2. When do group long-term disability benefits usually start?
- A) The first day of absence
- B) When short-term benefits are exhausted
- C) At age 65
- D) After 5 years
Practice: you’ve seen the answer to both versions of this question, so it won’t change your Insurance IQ.
Explanation: Triple-I says they usually start when short-term benefits are exhausted and continue from five years to life.
Review: Short-Term vs. Long-Term Disability Insurance: What's the Difference?
2. About what share of usual salary do typical group long-term disability benefits replace?
- A) About 20%
- B) About 60%
- C) 100%
- D) 120%
Practice: you’ve seen the answer to both versions of this question, so it won’t change your Insurance IQ.
Explanation: Triple-I says typical group long-term benefits replace about 60 percent of usual salary.
Review: Short-Term vs. Long-Term Disability Insurance: What's the Difference?
3. Your employer pays the whole premium for your disability plan. How are the benefits generally treated?
- A) Tax-free
- B) As taxable income
- C) Taxed only if over $10,000
- D) Taxed by the insurer
Practice: you’ve seen the answer to both versions of this question, so it won’t change your Insurance IQ.
Explanation: Benefits from an employer-paid plan are generally taxable. If you pay the premiums with after-tax money, the IRS says benefits aren't taxable.
Review: Are Disability Insurance Benefits Taxable?
3. You pay your own disability premiums with after-tax money. Your benefits are generally:
- A) Taxable
- B) Not taxable
- C) Half taxable
- D) Taxed at a higher rate
Practice: you’ve seen the answer to both versions of this question, so it won’t change your Insurance IQ.
Explanation: IRS Publication 525 says benefits from a policy you paid the premiums on aren't taxable.
Review: Are Disability Insurance Benefits Taxable?
4. Triple-I suggests a disability policy replace roughly what share of your taxable earnings?
- A) 10% to 20%
- B) 60% to 70%
- C) 100%
- D) 200%
Practice: you’ve seen the answer to both versions of this question, so it won’t change your Insurance IQ.
Explanation: Triple-I suggests a policy replacing 60% to 70% of your total taxable earnings; a higher percentage costs more.
Review: How Much Disability Insurance Do You Need?
4. Which change usually lowers a disability premium with the least long-term risk, if you have savings?
- A) A longer elimination period
- B) A two-year benefit period
- C) Accident-only coverage
- D) Dropping illness coverage
Practice: you’ve seen the answer to both versions of this question, so it won’t change your Insurance IQ.
Explanation: A longer wait before benefits lowers the premium. A short benefit period also saves money but leaves you exposed in a long disability.
Review: How Much Disability Insurance Do You Need?
5. Under a non-cancelable disability policy, what can change while you keep paying premiums?
- A) The premium
- B) The benefit
- C) Neither the benefit nor the premium
- D) Both
Practice: you’ve seen the answer to both versions of this question, so it won’t change your Insurance IQ.
Explanation: Triple-I says neither the benefit nor the premium can change on a non-cancelable policy while premiums are paid.
Review: Disability Insurance Features: Non-Cancelable, Residual Benefits and Cost-of-Living Riders
5. What does a residual disability benefit do?
- A) Pays only for total disability
- B) Pays partially if you work part-time with lost income
- C) Doubles the benefit after a year
- D) Pays your health insurance premiums
Practice: you’ve seen the answer to both versions of this question, so it won’t change your Insurance IQ.
Explanation: A residual benefit lets you work part-time and still receive a benefit making up for lost income.
Review: Disability Insurance Features: Non-Cancelable, Residual Benefits and Cost-of-Living Riders
6. Which is generally required to qualify for Social Security Disability Insurance?
- A) A disability expected to last a year or more, or result in death, and enough work history
- B) Any injury that lasts a month
- C) Being over 65
- D) Having a private policy
Practice: you’ve seen the answer to both versions of this question, so it won’t change your Insurance IQ.
Explanation: SSA says the disability must affect your ability to work for a year or more, or result in death, and you need enough work history.
Review: Social Security Disability Insurance (SSDI): Who Qualifies and What It Pays
6. When does SSA automatically enroll Disability recipients in Medicare?
- A) Right away
- B) 2 years after they become entitled to Disability
- C) At 70
- D) Never
Practice: you’ve seen the answer to both versions of this question, so it won’t change your Insurance IQ.
Explanation: SSA says it automatically enrolls you in Medicare 2 years after you became entitled to Disability.
Review: Social Security Disability Insurance (SSDI): Who Qualifies and What It Pays

Educational only: this assessment measures what the course teaches. It says nothing about whether your own insurance is adequate, and it isn’t a professional evaluation of your policy.

Disability Insurance: Final Assessment

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