Which of these statements concerning an individual Disability Income policy is true?

An individual Disability Income policy typically includes an elimination period, which is a specified duration that must pass after a policyholder becomes disabled before benefit payments begin. This period serves as a waiting time to ensure that minor or temporary disabilities do not trigger benefits, allowing the policy to focus on more significant, qualifying disabilities. The elimination period can range from a few days to several months, and its length can impact the premium of the policy; a longer elimination period usually results in a lower premium.

The other statements do not accurately reflect the characteristics of typical disability income policies. For example, benefits are contingent upon the individual being disabled per the terms of the policy; they do not get paid regardless of the status of their disability. Moreover, there is usually an inherent waiting or elimination period before benefits are paid, contrary to the idea that there is no waiting period. Coverage also doesn't entail all types of disabilities, as many policies define specific types or conditions that qualify for benefits.