Insurance

| December 3, 2015

0. Currently neither Ken nor Sandra has disability insurance coverage. Ken and Sandra would like more information from you about disability insurance. Which of the following statements is true in relation to disability insurance? Justify your answer.

10A. Shorter elimination periods result in lower premium costs.

10B. Benefits paid from employer-provided group disability plans are received income tax-free.

10C. If a guaranteed renewable contract is used, the insurance company cannot increase premiums on individual policies but can raise premiums for all individuals covered by that policy.

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