Illinois Health Insurance Practice Exam

Under a disability income policy, when will the benefits be paid?

1. If the insured is confined to a hospital

2. Only if the disability occurred at work

3. Even if the insured is not confined to a hospital

4. Only if the insured is confined at home

The correct answer is: Even if the insured is not confined to a hospital

The correct answer is that benefits under a disability income policy are paid even if the insured is not confined to a hospital. This type of policy is designed to provide financial support to individuals who are unable to work due to a disability, regardless of whether the individual is hospitalized or at home. The essence of disability income insurance is to replace lost income when a person is unable to perform their job duties due to a qualifying condition. Focusing on other possibilities, a disability income policy does not limit benefits strictly to conditions that require hospitalization or confinement at home. Therefore, it's important to recognize that disabilities can occur outside of these scenarios and still be eligible for benefits.