Which term defines the time period a disabled person must wait before benefits are paid under an individual disability policy?

• A. Time period a disabled person must wait before benefits are paid
• B. Deductible period
• C. Benefit period
• D. Waiting period after policy issue

Answer: (A)

The waiting time before benefits begin in an individual disability policy is called the elimination period. This is the period after you become disabled during which no benefits are paid, and it’s chosen to balance cost and coverage. A longer elimination period lowers premiums because the insurer isn’t paid to start benefits right away, while a shorter one means benefits start sooner but at a higher premium. Typical lengths are measured in days (for example, 30, 60, 90, or 180 days). In your question, the described time elapsed before benefits are paid matches this concept of the elimination period. The other ideas describe how long benefits continue (the benefit period) or are not standard terms for disability policies (a deductible period or a waiting period after issue).