Joe has a disability income policy that pays a monthly benefit of $1,200.Joe has been disabled for 30 days,but he only received a check in the amount of $600 from his disability insurance.What is probably the reason that he only received $600?

Question

Quizplus · Accepted Answer

An elimination period is the amount of time that must pass between the start of the disability and the time when the policy starts paying benefits. In this case, the elimination period is likely 15 days, so Joe would not receive benefits for the first 15 days of disability. Therefore, he would only receive a benefit for the remaining 15 days of the month, which would be $600 (half of the full monthly benefit of $1,200).

Joe Has a Disability Income Policy That Pays a Monthly