Question

R becomes disabled and owns an individual Disability Income policy. When is R eligible to receive disability benefits? a) Immediately upon purchasing the policy

b) After a waiting period specified in the policy
c) Only after retirement age
d) Only if R is permanently disabled

Answer 1

R is eligible to receive disability benefits after a waiting period specified in the policy.

Step-by-step explanation:

When owning an individual Disability Income policy, R is typically eligible to receive disability benefits after a waiting period specified in the policy. This waiting period is a predetermined period of time from when the disability occurs until the benefits start to be paid out. The waiting period allows insurance companies to ensure that the disability is genuine and not temporary. Once the waiting period is over, R can start receiving disability benefits if they meet the policy's eligibility requirements.