Answer :
In Disability Income policies, it is true that there are elimination periods. An elimination period is the waiting period that a policyholder must go through before they can start receiving benefits after becoming disabled. During this period, the individual must be unable to work due to a covered disability, and the benefits will not be paid out.
Here's an example to illustrate this concept:
- If a Disability Income policy has a 90-day elimination period, this means that once the individual becomes disabled, they must wait 90 days before they are eligible to receive benefits. Only after this waiting period has passed can the policyholder start receiving payments.
Therefore, the statement "True: There are elimination periods in the Disability Income policy" is correct, as elimination periods are indeed a common feature in Disability Income insurance policies.
Here's an example to illustrate this concept:
- If a Disability Income policy has a 90-day elimination period, this means that once the individual becomes disabled, they must wait 90 days before they are eligible to receive benefits. Only after this waiting period has passed can the policyholder start receiving payments.
Therefore, the statement "True: There are elimination periods in the Disability Income policy" is correct, as elimination periods are indeed a common feature in Disability Income insurance policies.
