Which waiting period and benefit combination will likely result in the highest premium for a disability income policy?

The combination of a 14-day waiting period and a 10-year benefit period results in the highest premium for a disability income policy due to the balance of the waiting period versus the duration of income benefits provided.

A shorter waiting period means that benefits will begin to be paid sooner after a disability occurs; this increases the likelihood that the insurer will pay out benefits at an earlier point. In this case, a 14-day waiting period is relatively short compared to the other options, which leads to a higher risk for the insurance company.

Moreover, a 10-year benefit period significantly extends the length of time that the policyholder can receive benefits. This long duration increases the potential payout to the insured and represents a higher financial risk to the insurer, contributing to higher premiums.

In contrast, the other choices feature longer waiting periods or shorter benefit durations. Longer waiting periods may discourage the insurance company from charging higher premiums because the insurer would not be liable to pay benefits during that time. Similarly, shorter benefit periods limit the insurer's potential payout, which generally leads to lower premiums overall. This combination of a short waiting period and an extended benefit period results in the highest risk and, consequently, the highest premium.