What is an elimination period in disability insurance?

The elimination period in disability insurance is indeed the time that must pass after a disability occurs before benefits become payable. This period is designed to prevent claims for short-term issues and acts as a waiting period to ensure that the disability is significant enough to warrant insurance benefits. It serves several purposes; for one, it helps keep insurance costs down by discouraging frequent or minor claims.

Typically, the elimination period can vary from policy to policy, ranging from a few days to several months, depending on the terms set by the insurer. During this elimination period, the insured does not receive any benefits; however, once it is completed and if the individual remains unable to work, the insurance company will begin to pay out benefits according to the terms of the policy.

Other options consider aspects of the insurance policy that do not relate directly to the waiting time for benefits. Such options may cover renewal terms, claim filing deadlines, or benefit limits, but these do not encapsulate the definition of the elimination period itself.