1. Heather is a single mother of 2 sons, Tyler (3) and Malcolm (5). As a dentist, Heather earns $125,000 annually. As the sole income earner for the family, Heather is considering buying disability insurance in order to receive an income replacement benefit should she experience a loss of income is she becomes disabled or ill and cannot work. Heather wants the policy to pay her benefits if she cannot perform her work and functions as a dentist. Heather also wants the policy to be guaranteed in terms od both premiums and benefits for the life of the contract, with the option of converting the policy at age 65. Which of the following disability insurance policies will BEST meet Heather’s objectives?

1. Any occupation, guaranteed renewable
2. Own occupation, guaranteed renewable
3. Any occupation, non-cancellable
4. Own occupation, non cancellable

2. Bonita and Vincenzo are in the process of obtaining a mortgage through Sovereign National Bank to purchase their first home. Simpreet, the mortgage advisor at Sovereign National Bank, tells them that they should consider applying for the creditor disability insurance for their mortgage. However, Bonita and Vincenzo already have group disability coverage through their employer plans. When they ask their insurance agent, Maureen, about the difference between creditor disability insurance and their group disability coverage, which of the following statements is CORRECT?

1. Bonita and Vincenzo would be considered the policyholders of the creditor disability policy.
2. The premiums on the group disability policy would be higher than the creditor disability policy.
3. Sovereign National Bank will be the life insured for the creditor disability policy.
4. Both the group and the creditor insurance plan would have limited underwriting.

3. Bracklin, a lawyer age 55, would like an individual disability insurance policy. His main objective is to ensure that once he is issued the policy, he will always have the same coverage with the same terms until the policy matures at age 65. At age 65, he wants to have the option to convert the policy, without medical evidence, to mature at age 75. Which of the following policies BEST meet Bracklin’s twin-objectives?

1. Non-cancellable policy
2. Cancellable policy
3. Guaranteed-to-issue policy
4. Guaranteed renewable policy