In a hospital indemnity plan, the waiting period before benefits begin per hospitalization is called

• A. Elimination period
• B. Grace period
• C. Benefit waiting period
• D. Claims period

Answer: (A)

The waiting period before benefits start in a hospital indemnity plan is called the elimination period. After you’re admitted to the hospital, benefits don’t begin for a set number of days (the elimination period); once that period passes, you receive daily benefits for each day of confinement. This concept helps control costs and is similar to waiting periods used in other types of plans. The other terms don’t describe this feature: a grace period relates to premium payments, a nonstandard “benefit waiting period” isn’t a typical term, and a “claims period” refers to the time you have to file a claim, not when benefits begin.