Florida 2-20 General Lines Agent (Property, Casualty, Commercial Lines and Florida Law)General InsuranceEasy
A client approaches you, a newly licensed General Lines Agent, seeking to purchase a policy that will protect their family from financial hardship should the client become unable to work due to a prolonged illness. Which of the following types of insurance would best address this client's primary concern?
- ALife Insurance
- BHealth Insurance
- CProperty Insurance
- DDisability Income Insurance
Show answer & explanationAnswer & explanation
Correct answer: D. Disability Income Insurance
Disability Income Insurance is designed to provide a regular income stream when the insured is unable to work due to illness or injury, directly addressing the client's concern about financial hardship from prolonged illness.
Why the other options are wrong
- A. Life insurance provides a death benefit, not income for living disability.
- B. Health insurance covers medical expenses, not replacement of lost income due to disability.
- C. Property insurance covers damage to possessions, not loss of income due to illness.
Disability Income Insurance
A type of insurance that provides periodic payments to an insured individual who is unable to work due to illness or injury.
- Replaces a portion of lost income.
- Can be short-term or long-term.
- Benefits typically cease when the insured recovers or reaches retirement age.
Memory trick: Life, Health, Property, and Disability keep you from financial instability.