Chapter 1 Review
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Chapter 1 Review
For many people, disability is the forgotten hazard -- despite its being far more likely at most ages before retirement than death. Although the chances of becoming disabled are greater for someone with a history of health problems, age, occupation and lifestyle also impact the likelihood of disability. If the disability statistics for any individual are sobering, the same statistics when applied to a group of individuals are even more so. As the size of any group increases, the likelihood of a long-term disability among members of the group also increases. As the group size becomes larger, the chance of a disability becomes almost 100%.
After considering the alternative income sources during disability -- savings, borrowing or spousal employment -- the only obvious answer is disability income insurance.
Chapter 1 Review Questions
True or False
True
*False
One
*Three
Four
Five
I. Age
II. Occupation
III. Lifestyle
I & II only
I & III only
II & III only
*I, II & III
The cost of disability coverage
The quality of disability coverage
*Both a and b
Neither a nor b
Smoking habits
Avocation
*Occupation
Drinking habits
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