What is the elimination period in a disability income policy?

In a disability income policy, the elimination period refers specifically to the waiting time before benefits are initiated following a disability that qualifies for coverage. This period is designed to give a buffer after the onset of the disability, during which the policyholder must wait before they can start receiving financial assistance.

Understanding the elimination period is crucial for policyholders, as it directly impacts when the benefits will begin and how they manage their finances during that waiting period. The length of the elimination period can vary between policies and can be an important factor in determining both the premium of the policy and the overall coverage.

The other options relate to different concepts within insurance policies. For instance, the time limit for filing a claim deals with the timeframe a policyholder has to notify the insurer of a disability event, while the period before the policy is active refers to any initial waiting or grace periods after purchasing the policy. The duration for which benefits are paid indicates the length of time for which a policyholder can receive payments, which is different from the initial waiting period defined by the elimination period.