What policy feature delays eligibility for disability benefits after a disabling event?

• A. Elimination period
• B. Grace period
• C. Benefit period
• D. Waiting period

Answer: (A)

The main idea here is the waiting time before benefits start after disability begins. The elimination period is the gap you choose when you buy disability income insurance that must pass from the onset of disability before any benefits are payable. It’s like a deductible for your benefits: if you’re disabled, you won’t receive payments during that elimination period, but once it ends (and you’re still disabled), benefits begin.

Choosing a longer elimination period lowers the premium because you’re bearing more of the initial cost yourself, while a shorter period means you start receiving benefits sooner but pay a higher premium. For example, with a 90-day elimination period, you wouldn’t get any benefits for the first 90 days of disability; after that, benefits would begin if you remain disabled.

Grace period relates to paying premiums, not when benefits begin. The benefit period is how long benefits are paid once they start. The term waiting period is sometimes used synonymously, but in this context the correct term for delaying eligibility is elimination period.