What is the result of a waiting period in disability insurance?

In disability insurance, a waiting period, also known as the elimination period, is the time that must pass after a disability occurs before benefits are payable. This means that if a policyholder becomes disabled, they will not start receiving benefits until the specified waiting period is over.

This waiting period is designed to prevent small, short-term disabilities from being covered, ensuring that the insurance benefits are reserved for more significant disabilities that require a longer recovery time. The duration of the waiting period can vary between policies, and during this time, the insured is responsible for covering their own living expenses.

The other choices do not accurately reflect the nature of the waiting period in disability insurance. While immediate payout may seem appealing, it contradicts the purpose of the waiting period. Similarly, removal of all conditions for payment and automatic termination of the policy do not align with how disability insurance is structured or function.