Florida 2-15 Life, Health and Variable Annuity AgentGeneral Knowledge of Health InsuranceMedium
A client has a disability income policy with a 60-day elimination period and a benefit period of 5 years. If the client becomes disabled on January 1st and remains disabled for 90 days, how many days of benefits will they receive?
- A0 days
- B90 days
- C30 days
- D60 days
Show answer & explanationAnswer & explanation
Correct answer: C. 30 days
The elimination period is the time that must pass after the onset of disability before benefits become payable. If the disability lasts 90 days and the elimination period is 60 days, benefits will be paid for the remaining 30 days (90 - 60 = 30).
Why the other options are wrong
- A. This would be true if the disability lasted less than the elimination period.
- B. This is the total duration of the disability, not the duration of benefits after the elimination period.
- D. This is the elimination period, not the benefit duration.
Disability Elimination Period
The waiting period, starting from the onset of a disability, during which no benefits are payable under a disability income policy.
- Must be satisfied before benefits begin.
- Acts like a deductible for time.
- Longer periods result in lower premiums.
Memory trick: Wait the elimination, then get your money for the rest.