In a disability income policy, what is the time frame called before coverage becomes effective?

In a disability income policy, the time frame before coverage becomes effective is known as the probationary period. This is a specific duration during which the insurance company will not pay benefits for any disability that occurs. The purpose of the probationary period is to help insurers manage risk by excluding coverage for pre-existing conditions or injuries that occur shortly after the policy is issued.

The probationary period typically lasts for a defined number of days from the start of the policy and is different from other terms like waiting period, which is associated with the time you must wait after a disability begins before benefits are paid, or grace period, which refers to the time you have to pay your premium after the due date without losing coverage. Understanding this vocabulary is crucial in mastering the concepts related to disability income policies.