hich of the following statements is not true of disability insurance?

Question

Question 1 options:

You should have it even if you are retired and living on a pension.

The amount of coverage should equal your disposable income.

If you are self-employed you should have disability insurance.

All of these are true of disability insurance.

Answer 1

The statement that is not true of disability insurance is:

You should have it even if you are retired and living on a pension.

Disability insurance is typically designed to replace income lost due to injury or illness while one is actively working. Once retired and living on a pension, the need for disability insurance diminishes since there is no active income that needs to be replaced.