Health Insurance Mastery Practice Exam

If Dwayne becomes disabled again after returning to work, what happens to his disability benefits?

1. The original benefit period resumes

2. A new benefit period begins

3. The policy is voided

4. No benefits are paid after returning to work

The correct answer is: The original benefit period resumes

The most accurate understanding of the situation lies in how a disability insurance policy typically functions when a beneficiary returns to work and then subsequently becomes disabled again. When Dwayne returns to work and later becomes disabled again, the original benefit period will generally resume. This means Dwayne will not need to go through the waiting period again or file a completely new claim; instead, the benefits that were initially in place prior to his return to work will automatically restart. This provision protects individuals who might face recurring disabilities, ensuring they are not penalized for attempting to return to work during their recovery. In contrast, a new benefit period would imply starting entirely anew under the conditions or waiting periods of the policy, which is not typically how most disability insurance works once an individual has proven prior eligibility. Additionally, voiding the policy is not a common action following a return to work, as policies usually provide coverage for defined durations under specific conditions. Lastly, stating that no benefits are paid after a return to work contradicts the very purpose of disability insurance, which is to provide financial support during times of disability, regardless of employment status fluctuations.