Question 1

Private health insurance offered through employers

Accepted Answer

Private health insurance offered through employers supplements coverage offered through government plans. It does not replace provincially sponsored health care, has premiums based on the specific company's employees, and may or may not be more expensive than government-sponsored health care depending on the plan and coverage provided.

Question 2

Which of the following is true regarding employer sponsored long term disability insurance?

Accepted Answer

The most important issue to consider with employer sponsored long term disability insurance is the definition of disability used. This determines when the employee is eligible to receive disability benefits.

Answer: D 
 A typical disability policy covers about 60-70 percent of the employee's salary, not 90 percent.

Question 3

In Canada, health insurance is provided

Accepted Answer

The answer of In Canada, health insurance is provided
...

Question 4

If Tom is a technology consultant and wants to purchase reliable long term disability insurance coverage that is cost effective for him, which would be the best choice?

Accepted Answer

The answer of If Tom is a technology consultant and...

Question 5

The waiting period you choose for receiving disability benefits would depend on

Accepted Answer

The waiting period you choose for receiving disability benefits should depend on your emergency funds. If you have enough emergency savings to cover your expenses during the waiting period, you may choose a longer waiting period to receive higher monthly benefits. But if you do not have enough emergency funds, you may need to choose a shorter waiting period to begin receiving benefits as soon as possible. Knowing your financial situation is crucial when choosing the waiting period for disability benefits.

Question 6

Under the Canada Health Act, taxes revenues are transferred to the provinces and

Accepted Answer

Under the Canada Health Act, the provinces must run health care on a non-profit basis, which means that they cannot charge fees to patients for medically necessary services. This is a key principle of the Act and ensures that all Canadians have access to healthcare regardless of their ability to pay.

Question 7

Which of the following would be of little concern when calculating the amount of disability insurance needed?

Accepted Answer

The amount of CPP disability coverage is a fixed amount determined by the government and does not need to be calculated when determining the amount of additional disability insurance needed. The other options, such as monthly mortgage payments, employer disability insurance policy, and major financial goals, are important factors to consider when calculating the amount of disability insurance needed.

Question 8

What should an individual, who is claiming benefits from his disability insurance, be most concerned with?

Accepted Answer

The answer of What should an individual, who is claiming...

Question 9

When considering insurance coverage in your financial plan, the most important issue is

Accepted Answer

Loss of income due to disability is the most important issue to consider when it comes to insurance coverage in a financial plan. Without adequate disability insurance, an individual or family would suffer a loss of income if a disability prevents them from working. Automobile and home insurance are important, but they only cover specific losses, while disability insurance covers potential lost income from any cause. Emergency funds to cover maternity leave are also important, but disability insurance should be in place in case an unforeseen disability prevents a person from working beyond their maternity leave.

Question 10

Regarding the definition of "disability,"

Accepted Answer

The definition of disability can vary from one disability policy to another and is the most important provision because it determines whether the policy will pay out benefits. It is important to review and understand the specific definition of disability in your policy.

Question 11

If John had disability insurance coverage from his employer that was cancelable, but guaranteed renewable, and he was on claim when the annual contract came up for renewal. Which of the following is true?

Accepted Answer

Cancelable but guaranteed renewable insurance means the insurer can increase premiums but cannot cancel the policy as long as premiums are paid. The employer can choose to cancel the coverage.

Question 12

Which of the following is true about disability insurance?

Accepted Answer

Becoming disabled could lead to a complete loss of income for an individual, leading to financial devastation. Emergency funds may not be enough to cover ongoing monthly expenses, and group insurance at work might not be enough to cover an individual's specific needs. Additionally, statistics show that disabilities can strike at any age, making disability insurance a critical type of coverage to consider.

Question 13

Disability insurance

Accepted Answer

Disability insurance usually pays about 60 percent of employment income lost due to injury or illness. While some plans may offer higher coverage, 60 percent is a common amount. Choices A and B are incorrect as they oversimplify what disability insurance covers, and workers' compensation is a separate system from disability insurance. Choice D is also incorrect as it is not true that these government programs provide enough coverage to replace lost income.

Question 14

Individual health insurance plans

Accepted Answer

Individual health insurance plans are sought by individuals who wish to supplement group and government plans. They are not paid from pay cheques but require separate premium payments. Pre-existing conditions may result in a higher premium rate, and coverage can be extended to spouses and beneficiaries.

Question 15

Which of the following is true about disability insurance?

Accepted Answer

The answer of Which of the following is true about...

Question 16

Group health insurance policies

Accepted Answer

Group health insurance policies are tied to the employer and are not transferrable if an employee leaves the company. The employee may be eligible for COBRA benefits, which allow them to continue coverage for a limited time, but they would have to pay the full cost of the premiums.

Question 17

What is the main advantage of purchasing the "own occupation" disability income coverage?

Accepted Answer

The answer of What is the main advantage of purchasing...

Question 18

Individual health insurance plans

Accepted Answer

Individual health insurance plans are purchased directly through agents, unlike group plans that are purchased through employers or organizations. They provide coverage for individuals who may not have access to group plans or need additional coverage beyond what is offered by their employer.

Question 19

An individual covered by disability insurance who has recently recovered and is returning to work after receiving benefits would be most concerned with

Accepted Answer

The answer of An individual covered by disability insurance who...

Question 20

What amount does disability insurance usually cover?

Accepted Answer

Disability insurance may provide a maximum dollar amount or a percentage of your income, depending on the terms of the policy. It's important to review the specifics of your policy to understand the coverage amount.

Quiz 10: Protecting Your Wealth - Health and Life Insurance

Private health insurance offered through employers

Which of the following is true regarding employer sponsored long term disability insurance?

In Canada, health insurance is provided

If Tom is a technology consultant and wants to purchase reliable long term disability insurance coverage that is cost effective for him, which would be the best choice?

The waiting period you choose for receiving disability benefits would depend on

Under the Canada Health Act, taxes revenues are transferred to the provinces and

Which of the following would be of little concern when calculating the amount of disability insurance needed?

What should an individual, who is claiming benefits from his disability insurance, be most concerned with?

When considering insurance coverage in your financial plan, the most important issue is

Regarding the definition of "disability,"

If John had disability insurance coverage from his employer that was cancelable, but guaranteed renewable, and he was on claim when the annual contract came up for renewal. Which of the following is true?

Which of the following is true about disability insurance?

Disability insurance

Individual health insurance plans

Which of the following is true about disability insurance?

Group health insurance policies

What is the main advantage of purchasing the "own occupation" disability income coverage?

Individual health insurance plans

An individual covered by disability insurance who has recently recovered and is returning to work after receiving benefits would be most concerned with

What amount does disability insurance usually cover?