An elimination period is the waiting time that must pass before benefits begin under a disability, health, or similar insurance policy. In plain language, it is the delay between the covered event and the point when the insurer starts paying.
Where elimination periods are common
Elimination periods appear most often in:
- disability income insurance
- long-term disability coverage
- short-term disability coverage
- certain accident or health forms with delayed benefits
The concept is time-based, not dollar-based. That makes it different from a deductible, which is an amount the insured pays.
Why the period matters
The elimination period affects both premium and claim behavior. A longer waiting period usually means:
- lower premium
- more self-retention by the insured
- delayed insurer payment
Claims teams must confirm not only that the insured suffered a covered disability or event, but also that the elimination period has been satisfied according to the contract’s rules.
Practical example
A long-term disability policy has a 90-day elimination period. The insured becomes disabled on January 1. Even if the disability is covered, benefits generally do not begin until the elimination period has been completed, assuming the disability continues and the policy’s other requirements are met.
Related Terms
- Waiting Period
- Benefit Period
- Long-Term Disability Insurance
- Short-Term Disability Insurance
- Disability Income Insurance
- Deductible