The waiting period between when a disability begins and when insurance benefits start being paid. Elimination periods typically range from 30 to 180 days for long-term disability policies. A longer elimination period means lower premiums but requires you to cover expenses longer on your own.
Related Terms
Disability Insurance
Insurance that replaces a portion of your income if you are unable to work due to illness or injury. Short-term disability covers weeks to months, while long-term disability can provide benefits for years or until retirement age. It is one of the most important yet often overlooked forms of insurance.
Long-Term Disability
Disability insurance that provides income replacement for extended periods — typically two years, five years, or until retirement age — after the elimination period ends. It usually replaces 50% to 70% of your pre-disability income and is available through employers or individual policies.
Short-Term Disability
Disability insurance that provides income replacement for a limited time, usually three to six months, while you recover from an illness or injury that prevents you from working. It typically replaces 60% to 70% of your salary and has a short elimination period of 0 to 14 days.