Disability Income✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
How does the elimination period affect the price of a disability income policy?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The elimination period is the waiting period between the onset of disability and the start of benefit payments — similar to a deductible in time. A longer elimination period (for example, 90 days instead of 30) shifts more of the early claim cost to the insured, so the insurer's expected payout falls and the premium drops. Selecting the elimination period is one of the most important price levers in disability insurance.
Why the other options are wrong
- B) Longer elimination periods reduce claim costs, so premiums decrease — this option states the opposite.
- C) The elimination period is a major pricing factor alongside benefit amount, benefit period, occupation class, and riders.
- D) The elimination period affects premium pricing; the benefit amount is a separate election that also affects price.
Memory hook
Elimination period = a deductible measured in days. Longer wait = cheaper policy; you self-fund the early weeks.