Disability Insurance Elimination Periods: Planning for the Wait
An elimination period is the qualifying period of disability that must be satisfied before benefits become payable under the policy. It is different from the maximum benefit period and from the date a payment reaches you. Choose using the contract terms and a realistic plan for expenses during the gap.
By Navid Lalezari · Author
Reviewed by Navid Lalezari
Last reviewed
In this guide
Find how days are counted
Ask whether qualifying disability days must be consecutive, whether an accumulation period applies and how a recurrence is treated. Confirm whether total and residual disability days count in the same way. A number on a quote is incomplete without the definition that goes with it.
Sources:[1]
Compare actual premiums for actual options
Request quotes that hold the benefit, duration, riders and other terms constant while changing the elimination period. A shorter wait may cost more, but there is no universal rule that moving from 90 to 60 days doubles a premium. Use the insurer’s actual comparison for your circumstances.
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Build a cash-flow bridge
List essential spending, available savings and any dependable paid leave or short-term benefit. A hypothetical household spending $5,000 monthly would need $15,000 to cover three months before considering other income, unusual expenses or payment delays. This is arithmetic for a budget discussion, not a recommendation for a 90-day contract.
Read next: An Elimination-Period Budget Exercise for Physicians · Physician Planning Toolkit
Separate waiting from claim administration
Ask when to notify the insurer, what evidence is needed and how payments are scheduled after eligibility is established. The end of the elimination period is not a promise of payment that day. Keep time for claim review and a cash reserve appropriate to your situation in the discussion.
Sources:[1]
Where to go from here
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Sources
Drs Choices summarizes and compares these sources on this page. Each entry links to the original if you want to verify the wording yourself.
Guardian: Disability insurance definitions
View original source for “Guardian: Disability insurance definitions” (opens in a new tab)Guardian: Disability insurance pricing factors
View original source for “Guardian: Disability insurance pricing factors” (opens in a new tab)