Cost-of-Living Adjustments (COLA)
This is a provision dealing with increasing benefits during periods of disability. It provides either a floating percentage increase or a fixed-percentage increase. In most cases, extra premium is required to add this feature.

Partial Disability Rider
Under this optional rider, you may return to work part-time, collect part-time income and also partial monthly disability income benefits.

Return of Premium Rider
If the insured has no disability and no claims within a specific period of time, the insurance company is required to refund a portion of premium paid.

Additional Insurance Option
Under this provision, the insured may simply purchase additional disability insurance. In most cases, additional underwriting will be required.

Practice Question:
Dr. Jones, a plastic surgeon, had an unfortunate automobile accident where she lost one hand and one foot. She is unable to perform plastic surgery, but now works as the office manager at a local hospital. Under what type of disability policy might she receive income benefits?

I. Own Occupation
II. Any Occupation
III. Presumptive disability
IV. Non-Cancellable

A. II only
B. I and III
C. II and III
D. IV only

Answer: B
Since Dr. Jones is able to perform another occupation, an "Any Occupation" policy would not pay disability income benefits, so answers A and C are eliminated. A non-cancellable policy simply means that your policy will stay in force if you pay premiums and the premium in turn will remain level. The correct answer is an "Own Occupation" policy or a provision for "Presumptive Disability".

Taxation of Premiums and Benefits

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