Elimination Period
Plain English
The elimination period is how long you have to be disabled before your disability insurance starts paying, such as 30, 60 or 90 days. You get no benefits during that time, even though you can't work. A longer wait lowers the premium, so the right choice depends on how long your savings could cover your bills.
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On this page
Definition
The elimination period is the number of days a person must be disabled before a disability insurance policy starts paying benefits. It works like a deductible measured in time: no benefits are paid for disability during the elimination period. Longer elimination periods generally mean lower premiums, and shorter ones higher premiums.
Why It Matters
It decides how long you'd live on savings after becoming disabled. Choose 90 days to save on premiums, and you need about three months of expenses set aside. Triple-I also notes the first check generally arrives within 30 days after the period ends, which stretches the gap further.
Real-World Example
Imagine two quotes for the same long-term disability coverage: one with a 30-day elimination period and one with 90 days. The 90-day policy costs less each year. The buyer has about four months of expenses in savings, so they choose 90 days, knowing benefits would start after that and the first check would come within 30 days of the end of the period.
Common Misconceptions
- The elimination period is the same as the benefit period. The elimination period is the wait before benefits; the benefit period is how long they're paid.
- Benefits are paid back for the waiting days later. Generally they aren't; the elimination period works like a deductible.
- The shortest wait is the best choice. It costs more; the right length depends on your savings and any short-term coverage.
Key Takeaways
- Triple-I: "Every disability insurance policy imposes a waiting period, also known as the elimination period."
- No benefits are paid during it, even though you can't work.
- Many people choose 60 to 90 days; shorter periods can mean higher premiums.
- Match it to your emergency savings and any short-term disability coverage.
Frequently Asked Questions
What is an elimination period in disability insurance?
The number of days you must be disabled before the policy starts paying benefits.
What's a typical elimination period?
Triple-I says many people select 60 to 90 days. Short-term policies usually have much shorter waits.
Does a longer elimination period lower the premium?
Yes. Triple-I says shorter elimination periods, such as 30 or 60 days, can mean higher premiums, and vice versa.
When does the first disability check arrive?
Triple-I says the first check comes within 30 days of the end of the elimination period.
Related Terms
Related Coverages
- Disability Insurance
Related Scenarios
Explore the rest of the Disability Insurance category.
Browse Disability Insurance terms →Sources
The factual claims on this page were checked against these sources. Rules and figures change, so check the source itself if you need to confirm the current version.
- iii.orgBuying disability insurance · Insurance Information Institute (Triple-I)
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