Elimination Period

The elimination period is the waiting time that must pass after an illness or injury occurs before disability insurance benefits begin to be paid. It functions like a deductible measured in days rather than dollars. During this period, you are responsible for your own income replacement through savings, sick leave, or other sources.

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Elimination periods typically range from 30 to 180 days, depending on the plan and premium level. Shorter elimination periods provide faster access to benefits but usually come with higher premiums. Longer elimination periods cost less but require you to self-fund a longer gap before payments start.

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This concept is most common in long-term disability (LTD) insurance but may also apply to short-term disability or critical illness riders that include income replacement features.

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Example:

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If your long-term disability policy has a 90-day elimination period and you become unable to work on January 1, your benefits would begin on March 31, provided you remain disabled through that time.

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What to Watch For:

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Make sure your elimination period aligns with your employer’s sick leave or emergency savings. If you have group coverage, coordinate the end of short-term disability with the start of long-term disability to avoid gaps in income. Always confirm whether the elimination period is measured in calendar days or working days, as this can affect when payments begin.