N is covered under an individual Disability policy with a 30-day Elimination period and a monthly benefit of $500. N is totally disabled for 3 1/2 months. N's total benefit received on this claim is:

$1,250

Explanation:

Before N starts to receive any disability payment, a 30 day elimination period must pass. He/she will start receiving disability payments starting the second month and they will last until his temporal disability is over:

covered time = 3.5 months - 1 month = 2.5 months x $500 per month = $1,250 total disability payments