Question

29 evan is a pilot who has decided to purchase an individual disability insurance policy. he wants a policy that offers fixed premiums for the lifetime of the policy. he wants the policy to pay him a benefit if he becomes unable to perform his job due to disability. he also wants the benefits to continue irrespective of whether he earns income from other occupations. which of the following policies would be a suitable recommendation to evan?
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a. a guaranteed renewable policy with an \any\ occupation definition of disability
b. a non - cancellable policy with an \own\ occupation definition of disability
c. a guaranteed renewable policy with an \own\ occupation definition of disability
d. a non - cancellable policy with a
egular\ occupation definition of disability
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Explanation:

To solve this, we analyze Evan's needs: fixed premiums (non - cancellable policies have fixed premiums for the policy's lifetime, while guaranteed renewable policies have premiums that can be adjusted by the insurer for the class), and benefits continue if he can't do his job (own occupation definition: pays if he can't do his own job, regardless of other income; any occupation would require him to be unable to do any job to get benefits). A non - cancellable policy has fixed premiums, and "own" occupation definition matches his need for benefits when he can't do his pilot job (even if he earns from other occupations). Option a: "any" occupation is wrong. Option c: guaranteed renewable may have premium changes. Option d: "regular" occupation is not a standard disability definition here, and "own" is better. So option b fits.

Answer:

b. A non - cancellable policy with an "own" occupation definition of disability