What does a waiting period in disability insurance typically ensure?

The correct answer highlights the purpose of a waiting period in disability insurance, which is a specified duration that must pass before benefits become available. This waiting period allows the insurance company to mitigate risk and helps ensure that individuals do not make claims for temporary or short-term disabilities before the coverage is officially in effect. It serves to encourage policyholders to be mindful of their health and provides a measure of financial responsibility.

Typically, waiting periods vary depending on the specific policy and the insurance provider's guidelines. Understanding the waiting period is crucial for policyholders as it impacts their financial planning and expectations regarding when they might receive benefits after becoming disabled.

The other options are not accurate in describing the function of a waiting period. Claims being paid immediately contradicts the nature of a waiting period, and stating that only severe disabilities are covered oversimplifies the criteria for claims approval. Finally, while waiting periods may influence the terms of short-term benefits, stating that it restricts their application does not accurately communicate the core purpose of the waiting period itself.