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Ian applies for an individual disability insurance (DI) policy with a return of premium (ROP)...

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Finance

Ian applies for an individual disability insurance (DI) policy with a return of premium (ROP) rider. During the application process, the insurer determines that Ian is overweight. After the underwriting process, the insurer issues a policy with a rating due to Ians weight issue. Which of the following provides a CORRECT description what will happen under Ian's disability insurance policy?

a) Any amounts received by Ian as a return of premium will be tax-free.
b) If Ian suffers a disability related to his weight, no benefits will be payable.
c) Ian will receive a return of premium if the total claims exceed the premiums paid.
d) The premiums that Ian pays will be tax-deductible.

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