Which of the following statements about disability insurance is false?A longer elimination period will lower your premium cost.Disability insurance is not necessary if you have a good health insurance policy.Your coverage should be for 65% of your income.After college, short-term disability should be covered by your emergency fund of three to six monthsʹ worth of expenses, staying out of debt, and having a money plan.
Question
Which of the following statements about disability insurance is false?A longer elimination period will lower your premium cost.Disability insurance is not necessary if you have a good health insurance policy.Your coverage should be for 65% of your income.After college, short-term disability should be covered by your emergency fund of three to six monthsʹ worth of expenses, staying out of debt, and having a money plan.
Solution
The false statement about disability insurance is: "Disability insurance is not necessary if you have a good health insurance policy."
This is false because health insurance only covers medical expenses. Disability insurance, on the other hand, replaces a portion of your income if you are unable to work due to a disability. Therefore, even if you have a good health insurance policy, disability insurance is still necessary to cover lost income.
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