Certified Financial Consultant (CFC) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Certified Financial Consultant Exam. Enhance your understanding with detailed questions, hints, and explanations. Boost your confidence for the CFC test!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is the term for the period following a disability during which benefits are not payable?

Grace period
Elimination period
Waiting period
Deferral period

The correct answer is: Elimination period

The term for the period following a disability during which benefits are not payable is known as the elimination period. This is a crucial concept in disability insurance as it represents the time frame that an individual must wait after a disabling event before they begin to receive benefits. The elimination period is typically outlined in the insurance policy and can vary in length based on the terms agreed upon when the policy was purchased. During this time, individuals do not receive any financial support from their insurance provider, which underscores the importance of understanding the duration of this period when deciding on a policy. The elimination period encourages policyholders to carefully evaluate their savings and financial resources to ensure that they are adequately prepared to manage during this waiting time without benefit payments. It is an essential factor in the overall coverage provided by a disability insurance policy.