Question

"Z owns a Disability Income policy with a 30-day Elimination period. Z contracts pneumonia that leaves him unable to work from January 1 until January 15. Z then becomes disabled form an accident on Feb. ! and the disability lasts until July 1 the same year. Z will become eligible to receive benefits starting on

a. -Jan. 1
b. -Jan. 15
c -Feb. 1
d -Mar. 1"

Answer 1

Z will become eligible to receive disability benefits on March 1 after meeting the 30-day Elimination period, since the second disability period (due to an accident) lasted beyond the waiting period.

Step-by-step explanation:

The student's question concerns the eligibility of disability income benefits and when they can start if the insured has a 30-day Elimination period. Considering Z contracted pneumonia and was unable to work from January 1 until January 15, but the disability policy has a 30-day waiting period, no benefits would be payable for that duration of disability. However, Z then encountered an accident on February 1 and the resulting disability lasted until July 1. In this instance, Z will begin to receive disability benefits after the 30-day Elimination period is satisfied, starting from March 1.