What is the primary function of the probationary period in a disability income policy?

The primary function of the probationary period in a disability income policy is to prevent coverage from starting immediately. This period, which typically lasts for a specific duration such as 10 to 30 days from the policy's effective date, is designed to ensure that the insured does not file a claim for a pre-existing condition that might have existed before the policy was in effect. By implementing a probationary period, insurers can limit their risk by not providing benefits for disabilities that arise from conditions already existing at the time the coverage begins. This helps to mitigate moral hazard and ensure that the policy serves its purpose for unforeseen incidents rather than pre-existing issues.