What is the definition of Elimination Period?

The Elimination Period is the waiting period before the insurance company will pay benefits, usually for disability insurance. The period is counted in days from the diagnosis of a covered illness, injury or disability.

This is a type of deductible, only it is a time period, and not a specified dollar amount. During the elimination period, it is the insured that pays for related expenses. For example, if an insurance policy pays for monthly disability income and there is a 30-day elimination period, the benefit payments will not kick in until the end of the 30-day period. Elimination periods usually take as long as 90 days, which is the usual length of such waiting periods.

The elimination period is a method by which the insurance companies keep the premiums low. It is recommended that you as the policy owner check the coverages to determine the elimination period for the benefits to be paid.

• Reinstatement
• Registered Principal
• Liquor Liability
• Businessowners Policy (BOP)
• Directors and Officers Liability Insurance