What is a potential disadvantage of a longer elimination period in disability insurance?

A longer elimination period in disability insurance refers to the waiting period before benefits begin to be paid after a disability occurs. The primary disadvantage of having an extended elimination period is that there is a delay in receipt of benefits. During this waiting period, the policyholder may not receive any financial support, which can lead to financial strain, especially if they are unable to work due to their disability.

While some may think that a longer elimination period could lead to reduced premiums, this isn't a disadvantage but rather a potential advantage in terms of cost savings. It does not lead to immediate payment of benefits, which is not applicable in this context, nor does it imply a reduction in benefit amounts. Therefore, the reality of having to wait longer for benefits, which can be crucial during a time of need, characterizes the disadvantage clearly.