1) Which of the following is true of long-term disability insurance?

A) The cost of the premium decreases with the extension of the coverage period.

B) It will replace a portion of a person's salary for three to 12 months after an injury.

C) It comes into effect after the insured has reachedage 65.

D) It becomes effective after you cannot work for six to 12 months.

2) Jose has invested in long-term care insurance for many years. He recently suffered a stroke and claimed his long-term care insurance.

Which of the following benefits is he likely to receive?

A) His insurance will provide home care assistance and cover all his associated medical costs.

B) His insurance will have an unlimited benefit period, keeping the policy active for as long as he is alive.

C) His insurance will provide him unlimited benefits as long as his place of residence stays the same.

D) His insurance will pay for a skilled nurse who provides him with around-the-clock care.

3) Joseph invested in a series of stocks that performed well and produced high returns. Soon after, he started making hasty investment choices without the research to back them up.

Which of the following behaviors is Joseph exhibiting in this situation?

A) Loss aversion

B) Confirmatory bias

C) Hyperbolic discounting

D) Status quo bias