If a disability income policy pays $1500/month and has a 30-day elimination period, what is the total benefit paid after 120 days of disability?

To calculate the total benefit paid after 120 days of disability, it's essential to consider both the elimination period and the monthly benefit amount.

The disability income policy includes a 30-day elimination period, which means that the policy will not provide benefits during the first 30 days of a disability. After this initial 30-day period, benefits commence at the monthly rate specified in the policy.

After the 30-day elimination period, the individual would be eligible for benefits for the remaining days of the 120-day disability. This leaves 90 days of actual benefit coverage (120 total days - 30 days elimination period = 90 days of benefit eligibility). Since the monthly benefit is $1,500, and the individual is eligible for benefits for 3 months (90 days equals 3 months), the total benefit paid would be calculated as follows:

3 months × $1,500/month = $4,500.

Therefore, the total benefit paid after 120 days of disability sums up to $4,500, which aligns with the correct choice.