Question

An insured who has a Disability Income policy that pays a $1,500 monthly benefit becomes disabled for a period of one year. The insured later dies as a result of complications from the disability. In this situation, which of the following describes the rights of the insured's estate?

A) The estate is entitled to a lump sum payment equal to the remaining disability benefits.
B) The estate is not entitled to any benefits since the insured died during the disability.
C) The estate is entitled to the full remaining disability benefits.
D) The estate is entitled to the death benefit but not the remaining disability benefits.

Answer 1

The insured's estate is entitled to the death benefit but not the remaining disability benefits.

Step-by-step explanation:

The rights of the insured's estate in this situation will depend on the terms and conditions of the Disability Income policy. However, generally speaking, in the event of the insured's death as a result of complications from the disability, the estate would typically be entitled to the death benefit but not the remaining disability benefits.