AD Banker Comprehensive Practice Exam

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Enhance your exam readiness with the AD Banker Comprehensive Exam guide. Includes flashcards and multiple-choice questions with explanations.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Which of the following insurance policies typically provides coverage for long-term disabilities?

Health insurance
Disability income insurance
Life insurance
Auto insurance

The correct answer is: Disability income insurance

Disability income insurance is specifically designed to provide a source of income for individuals who are unable to work due to a long-term disability. This form of insurance replaces a portion of lost wages, enabling the insured to maintain financial stability during their recovery or adjustment period after a disability occurs. Unlike health insurance, which primarily covers medical expenses related to illness or injury, disability income insurance focuses on the income aspect when a policyholder is unable to earn wages. Life insurance is intended to provide financial support to beneficiaries after the insured's death, while auto insurance is tailored to protect against vehicle-related damages and liabilities. Therefore, disability income insurance stands out as the correct choice for coverage specifically aimed at supporting individuals facing long-term disabilities.