A disability policy with a longer elimination period typically charges lower premiums than a policy with a short elimination period.

Question

Quizplus · Accepted Answer

This statement is true. A disability policy with a longer elimination period will have a lower premium because the insured is agreeing to wait longer before benefits begin. This reduces the likelihood of claims being filed and, as a result, lowers the insurance company's risk.

A Disability Policy with a Longer Elimination Period Typically Charges