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Insurance · Disability Income and Long-Term Care

What is the 'elimination period' in a disability income policy?

Reviewed by Jordan Morley, Editorial Lead at 247SimpleTests. Written by the 247SimpleTests Editorial Team from the official source material cited on every question.

Correct answer

The waiting period between onset of disability and when benefits begin paying — similar to a time-based deductible

  1. A A period when disability coverage is terminated
  2. B The waiting period between onset of disability and when benefits begin paying — similar to a time-based deductible
  3. C A pre-existing condition exclusion period
  4. D The period after which claims are no longer accepted

Why this is the answer

The elimination period (EP) is the 'deductible' measured in time rather than money. If your EP is 90 days, you must be continuously disabled for 90 days before receiving your first benefit check. Common elimination periods: 30, 60, 90, 180, 365 days. Longer EP = lower premium. Most individual disability policies have a 90-day EP as the balance point between premium savings and risk. During the EP, the insured receives no benefits and must have other financial resources (emergency fund, savings). The EP begins on the first day of disability.
Source: Health Insurance Exam, Disability Elimination Period

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About this topic: Disability Income and Long-Term Care

Disability income and long-term care questions cover definitions of disability, elimination and benefit periods, riders, and the triggers and benefits of long-term care policies including partnership programs. This is one of 9 Health Insurance questions on disability income and long-term care, each with a full explanation on a single study page.

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