Life & Health Insurance Practice Exam 2025 - Free Practice Questions and Study Guide

Question: 1 / 470

What is an Elimination Period in terms of disability insurance?

A period during which no claims can be filed

A time frame for policy renewal

A duration during which no benefits are paid following a claim

An elimination period in disability insurance refers to the duration during which no benefits are paid following a claim. This is essentially a waiting period that begins after a policyholder becomes disabled, during which they must wait before they can start receiving benefit payments.

The rationale behind this period is to ensure that individuals are truly disabled and need assistance financially before the insurance company begins disbursing funds. It also helps insurance companies manage claims and reduce the number of short-term claims, as it allows time for the policyholder’s situation to stabilize.

Understanding the elimination period is crucial for policyholders, as it affects how soon they can expect to receive benefits after filing a claim. Being aware of this stipulation can help individuals better plan their finances in the event of a disability.

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A period for reviewing policy changes

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