Life & Health Insurance Practice Exam 2025 – Your All-in-One Guide to Exam Success!

Question: 1 / 470

How frequently must disability income insurance benefits be paid?

Quarterly

Bi-annually

Monthly

Disability income insurance benefits are typically structured to be paid on a monthly basis. This frequency aligns with the common financial obligations individuals face, such as rent or mortgage payments, utility bills, and other recurring expenses. By receiving benefits monthly, policyholders can better manage their cash flow during a period of inability to work due to a disability.

Other payment frequencies, such as quarterly, bi-annually, or yearly, could present challenges for individuals relying on benefits to meet immediate financial needs, as these longer intervals could lead to cash shortages between payments. Ensuring that benefits are paid monthly helps maintain financial stability for those affected by a disabling condition. This monthly approach is standard practice within the industry, making it the correct answer in this context.

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Yearly

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