Question

1. piper is willing to pay a high premium for their disability insurance. what are the likely outcomes of paying that higher premium?

○ they receive a low deductible and a low monthly payment
○ they receive a low deductible and a low coverage limit
○ they receive a low deductible and a high coverage limit
○ they receive a low deductible and a high risk assessment

Explanation:

In insurance, a higher premium (the amount paid for coverage) typically leads to more favorable terms. A low deductible means less out - of - pocket cost before insurance kicks in, and a high coverage limit means the insurance will cover more of the costs. Paying a high premium is associated with getting better coverage terms. The first option is wrong as a high premium doesn't lead to a low monthly payment. The second option is wrong because a high premium should lead to a high (not low) coverage limit. The fourth option is wrong as a high premium is more about getting better coverage, not a high risk assessment.

Answer:

C. They receive a low deductible and a high coverage limit