Health · Chapter 19 · Premium Calculation
Secondary Premium Factors
Definition
Policy-design choices that adjust the base rate: Benefits — the greater the number/level/type of benefits, the higher the premium. Benefit period — the maximum time monthly income is collected (common: 12, 24, 30 months; 5, 10, 20 years; to age 65; or life) — longer = higher premium. Elimination (waiting) period — works like a deductible in time, satisfied on EACH disability before benefits start — longer elimination period = LOWER premium. Probationary period — a ONE-TIME period (typically 30 days) after issue during which sickness is not covered but accidents are covered immediately, letting the insurer deny small pre-existing sickness claims.
In plain English
The dials on the policy: richer benefits cost more; making yourself wait longer costs less.
Exam tip
⚠️ Elimination period = per-disability, repeats every claim, trades premium for wait. Probationary period = one-time, sickness only, accidents covered from day one.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms