What does the benefit period refer to in a disability income policy?

The concept of the benefit period in a disability income policy refers specifically to the duration for which benefits will be paid once the elimination period has been satisfied. The elimination period is essentially the waiting time that must be completed before the benefits kick in if a disability occurs. After this period, the policyholder will receive payments for the length of the benefit period, which can vary depending on the specific terms of the policy.

This means that if an individual is unable to work due to a covered disability, their policy will continue to provide income support for the entire span of the benefit period, which might be several months or years, depending on their policy. Understanding the benefit period is crucial for individuals looking into disability income insurance, as it directly influences their financial security during periods of inability to work due to health issues.