Solved:
Answered by AI, Verified by Human Experts
A client has a new individual disability income policy with a 20-day probationary period and a 30-day elimination period. Ten days later the client breaks their leg and is off work for 45 days. How many days of disability benefits will the policy pay?
A client has a new individual disability income policy with a 20-day probationary period and a 30-day elimination period. Ten days later the client breaks their leg and is off work for 45 days. How many days of disability benefits will the policy pay?
Final answer:Considering the policy's 20-day probationary and 30-dayeliminationperiods, the policy will technically pay for 15 days of disability, given that an accident happened 10 days after the policy started with the illness lasting for 45 days. However, since the accident happened during the probationary period, the policy might not provide coverage at all for this event.Explanation:The subject at hand involves the understanding of two key terms in a disability income policy - aprobationary periodand an elimination period. The probationary period is the initial period after the policy starts when coverage for illness-related disablement is not provided. Here, it's 20 days. The elimination period is the waiting period after a claim is filed and before benefits start to be paid. In this case, it's 30 days.It's noted that the client has an accident 10 days after the policy started but within the probationary period, implying the accident won't be covered. But assuming it is for the sake of this explanation - the client broke their leg and was off work for 45 days. The elimination period in this policy is 30 days meaning he/she will not receive benefits for the first 30 days of the ailment. After 30 days, the policyholder would start to receive benefits for the remaining 15 days (45 days minus 30 days). Therefore, theoretically, the policy will pay for 15 days of disability. However, in reality, considering the 20-day probationary period, the policy may probably not pay anything for this event since it occurred during this timeframe.Learn more about Disability Income Policy here:brainly.com/question/32222468#SPJ11...