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Insurance · General

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

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 The period after which claims are no longer accepted
  4. D A pre-existing condition exclusion period

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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