An insured owns an individual disability income policy with a 30-day elimination period for sickness and accidents and a monthly indemnity benefit of $500. if the insured is disabled for 3 1/2 months, what is the maximum amount he would receive for an approved claim?

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26 May, 15:15

An insured owns an individual disability income policy with a 30-day elimination period for sickness and accidents and a monthly indemnity benefit of $500. if the insured is disabled for 3 1/2 months, what is the maximum amount he would receive for an approved claim?

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Savage · Answer 1

The elimination period also called waiting time is the amount of time that should pass or be satisfied before the person can enjoy the benefits of the disability plan.

Since the elimination period is 30 days or 1 month and the insured is only disabled for about 3.5 months, therefore the benefits he will receive would only be equivalent to 2.5 months worth of benefits. Calculating for the maximum money he can received:

Maximum amount of money he can receive = monthly indemnity benefit * number of months

Maximum amount of money he can receive = ($500 / month) * (2.5 months)

Maximum amount of money he can receive = $1,250