Which statement is true regarding individual Disability Income policies?

Individual Disability Income policies typically include an elimination period, which is the amount of time a policyholder must wait after a disability occurs before benefits begin to be paid. This period is designed to prevent the payment of benefits for short-term or minor disabilities and helps to reduce the overall cost of the insurance premium.

During the elimination period, the insured must wait while they are unable to work due to their disability; this is important for both the insurer and the insured. For the insurer, it ensures that benefits are only paid for significant disabilities that genuinely hinder the individual's ability to earn a living. For the insured, understanding this wait time is crucial when planning for financial stability during a disability.

Policies that do not include an elimination period would begin paying benefits immediately upon the onset of a disability; such a provision would typically come with higher premiums due to the increased risk to the insurer. On the other hand, the reinstatement period mentioned in other choices refers to terms when a lapsed policy can be reinstated without evidence of insurability, not a standard feature in all disability policies.

Lastly, regarding coverage types, individual Disability Income policies cover both work-related and non-work-related disabilities, making it inaccurate to claim that they cover only work-related disabilities. Thus