Maryland Life and Health Insurance License Practice Exam

What type of disability is generally NOT covered by long-term disability insurance?

1. Pre-existing conditions

2. Temporary injuries

3. Hearing loss

4. Mental health issues

The correct answer is: Pre-existing conditions

Long-term disability insurance typically includes provisions to exclude certain types of disabilities from coverage, and pre-existing conditions are one of the most common exclusions. When an individual has a condition that existed before the effective date of the policy, insurers often consider it to be a risk they are not willing to cover. This exclusion applies especially if the condition was diagnosed or treated within a specific time frame (usually a few months) before applying for the insurance. This practice helps insurance providers manage their risk, as individuals with known, ongoing health issues might seek coverage specifically to address those issues. Consequently, pre-existing conditions can significantly impact eligibility and claims, making them a primary reason for denial in long-term disability claims. In contrast, temporary injuries, while potentially not covered long-term, may still be encompassed within a short-term policy, and thus do not firmly fall into the same exclusionary category. Hearing loss and mental health issues often have different coverage parameters, potentially being eligible for benefits depending on the specifics of the disability and the terms of the policy. Understanding how these different types of disabilities relate to coverage will aid in navigating the intricacies of long-term disability insurance policies.