Certified Financial Consultant (CFC) 2025 – 400 Free Practice Questions to Pass the Exam

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What does the term 'extension of benefits' refer to in health insurance?

Continuation of coverage after policy lapses

Coverage for dependents after age restriction

Prolonged coverage for a disabled policyholder

The term 'extension of benefits' in health insurance primarily refers to the prolonged coverage for a disabled policyholder. This provision ensures that if a policyholder becomes disabled, their health insurance benefits continue for a specified duration even if they are unable to make premium payments or actively continue the policy. This is crucial for providing ongoing medical care and financial support during periods when the policyholder cannot earn an income due to their disability.

By focusing on this aspect, it highlights the importance of safeguarding the interests of individuals who face significant health challenges and might otherwise lose their coverage at a vulnerable time. The acknowledgment of this provision demonstrates the critical role that health insurance plays in providing security and peace of mind during difficult situations.

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Renewal of policy without medical underwriting

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