What is Extension of Benefits?

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Multiple Choice

What is Extension of Benefits?

Extension of Benefits is a provision in disability income insurance that allows someone who is already disabled while a policy is still in effect to keep receiving benefits under that existing policy after the policy ends, for a limited period. The purpose is to avoid a gap in coverage by continuing the disability benefits from the prior plan if the disability began before termination. This captures the idea that benefits should be preserved for ongoing disabilities rather than suddenly stopping once the policy ends. It does not involve converting benefits to life insurance, nor does it change the elimination period in a new policy, and it certainly doesn’t exclude disability benefits after termination.

Extension of Benefits is a provision in disability income insurance that allows someone who is already disabled while a policy is still in effect to keep receiving benefits under that existing policy after the policy ends, for a limited period. The purpose is to avoid a gap in coverage by continuing the disability benefits from the prior plan if the disability began before termination. This captures the idea that benefits should be preserved for ongoing disabilities rather than suddenly stopping once the policy ends. It does not involve converting benefits to life insurance, nor does it change the elimination period in a new policy, and it certainly doesn’t exclude disability benefits after termination.

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