The period that an insured must be disabled before benefits are paid is known as what?

The correct answer is known as the elimination period. This term refers to the specific duration of time an insured individual must remain disabled before they are eligible to receive benefits under a disability insurance policy. It acts as a deductible in terms of time, ensuring that only those who have a legitimate and ongoing disability can access financial support through the policy.

The elimination period is crucial because it helps insurance companies manage risks and reduces the cost of coverage for policyholders. Typically, this period can range from a few weeks to several months, depending on the policy terms. The longer the elimination period, the lower the premium might be, as the insurer's liability is delayed.

In contrast, a waiting period involves a delay before coverage begins or before a claim can be made but is often confused with the elimination period. The grace period is the time allowed for payment of premiums after the due date without penalty. An exclusion period typically refers to a time frame during which specific conditions or treatments are not covered by the insurance policy.