Question

R becomes disabled and owns an individual disability income policy. When is R eligible to receive disability benefits?

A) Immediately after notifying the insurance company about the disability.
B) After satisfying the waiting or elimination period.
C) Upon submission of medical records proving the disability.
D) Upon renewal of the disability income policy.

Answer 1

R is eligible for disability benefits after satisfying a waiting period and upon submission of medical records that prove the disability.

Step-by-step explanation:

R is eligible to receive disability benefits from an individual disability income policy after satisfying the waiting or elimination period. This period is a predetermined amount of time that must pass after a disabling event before benefits can be paid. It is similar to a deductible in other types of insurance. The policy details, including the length of this waiting period, will be outlined in the contract between R and the insurance company. After this period, and upon submission of medical records proving the disability, R may begin to receive benefits, assuming all other policy conditions are met. These medical records serve as evidence of the disability and help determine the extent of the disability, which can then be used to calculate the amount of disability benefits that R is eligible to receive.

Answer: C) Upon submission of medical records proving the disability.