Question 84

The benefit paid after 120 days of disability is $1,000.

Since the insured has a 90-day elimination period, they will not receive any benefits for the first 90 days of their disability. However, once this period is over, they are entitled to receive their monthly benefit of $1,000 for the remainder of the month in which they became eligible.

A) $0

This option is incorrect because, although the insured does not receive benefits during the 90-day elimination period, they will receive a benefit starting from the 91st day. Therefore, stating that the benefit paid is $0 fails to account for the benefit that will be received after the elimination period.

B) $1,000

This option is correct as it reflects the benefit that the insured is entitled to receive after the 90-day elimination period. Since the insured has been disabled for a total of 120 days, they will receive their monthly benefit of $1,000 for that month.

C) $3,000

This option is incorrect because it incorrectly assumes that the insured would receive benefits for multiple months. The insured only receives a benefit for the month following the elimination period, which amounts to $1,000, not $3,000.

D) $4,000

This option is also incorrect as it suggests an inflated amount based on multiple months of benefits. The insured does not receive any benefits during the first 90 days, and thus cannot claim $4,000, which would imply they received benefits for four months.

Conclusion

The correct answer is $1,000, as the insured is entitled to this amount only after the 90-day elimination period has passed. Options A, C, and D fail to accurately reflect the policy terms regarding the elimination period and the timing of benefit payments. Only option B correctly identifies the amount due after the waiting period concludes.