Elimination Period
The elimination period is the waiting period at the beginning of a disability or long-term care claim before benefits begin to be paid, typically ranging from 30 to 180 days—longer periods result in lower premiums.
Exam Tip
Elimination period = deductible in TIME, not dollars. Longer EP = lower premium. Match to your savings/emergency fund.
What is an Elimination Period?
The elimination period (also called a waiting period or qualification period) is the time between when a covered disability or need for long-term care begins and when benefits start being paid. It's essentially a deductible measured in time rather than dollars.
Common Elimination Periods
| Insurance Type | Typical Options |
|---|---|
| Disability (Short-Term) | 0-14 days |
| Disability (Long-Term) | 30, 60, 90, 180 days |
| Long-Term Care | 30, 60, 90, 100 days |
How It Works
| Day | Status |
|---|---|
| Day 1 | Disability begins |
| Days 1-90 | Elimination period (no benefits paid) |
| Day 91+ | Benefits begin (if still disabled) |
Premium Impact
| Elimination Period | Premium Level |
|---|---|
| 30 days | Highest premium |
| 60 days | High premium |
| 90 days | Moderate premium |
| 180 days | Lowest premium |
Choosing an Elimination Period
| Consideration | Recommendation |
|---|---|
| Emergency Fund | Match to savings (3-6 months) |
| Other Coverage | STD may cover initial period |
| Cash Flow | Can you survive without income? |
| Premium Budget | Longer = more affordable |
Disability vs. Long-Term Care
| Feature | Disability Insurance | LTC Insurance |
|---|---|---|
| Purpose | Income replacement | Care costs |
| Typical EP | 90 days common | 30-100 days |
| Clock Starts | When disabled | When care needed |
Important Considerations
| Issue | Details |
|---|---|
| Continuous | Some require continuous disability |
| Accumulated | Some allow accumulated days |
| Return to Work | May restart if disability recurs |
| Date of Service | LTC often counts from first service |
Cost Savings Example
| Elimination Period | Annual Premium |
|---|---|
| 30 days | $2,000 |
| 90 days | $1,400 (30% savings) |
| 180 days | $1,100 (45% savings) |
Study This Term In
Related Terms
Disability Insurance
InsuranceDisability insurance provides income replacement when a policyholder cannot work due to illness or injury, typically paying 60-70% of pre-disability income after an elimination period.
Waiver of Premium Rider
InsuranceA waiver of premium rider is a life insurance provision that waives all premium payments if the policyholder becomes totally disabled, keeping the policy in force without any out-of-pocket cost during the disability.