In disability income insurance, what is an elimination period?

• A. The period after benefits begin before they end
• B. The waiting period before disability benefits begin after a claim is approved
• C. The maximum duration benefits can be paid
• D. The period during which premiums are waived

Answer: (B)

The elimination period is the waiting period before disability benefits start after you become disabled and your claim is approved. It acts like a deductible in disability income insurance: you cover the initial portion of your disability yourself for a set length of time, and once that period ends and you remain disabled, benefits begin.

Choosing a longer elimination period reduces the premium because you self-insure longer at the start, while a shorter elimination period increases premium but means benefits begin sooner. It’s separate from the total amount or duration of benefits (the benefit period) and from any premium waiver provisions. For example, with a ninety-day elimination period, you wouldn’t receive payments for the first ninety days of disability; if you’re still disabled after that, benefits kick in for the remainder of the covered period.