Elimination period


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Elimination Period

In disability income insurance or loss of income insurance, the period of time that must transpire before the insurer begins to make payments covering the claim. That is, if one suffers an injury or a long term illness that results in substantial loss of income, the insurance policy sets an elimination period, at least in part to ensure that the disability or sickness is in fact long-term. The elimination period is often thought of as the deductible for disability and loss of income insurance as the policyholder is responsible for expenses incurred during it. For the disability income insurance run by the Social Security Administration, the elimination period is five months. Private plans often include 90-day periods, or shorter periods in exchange for higher premiums.

Elimination period.

If you have disability insurance or long-term care insurance, there's a waiting period, called the elimination period, from the time you become disabled, or are certified in need of long-term care, and when you begin receiving benefits.

You often have a choice of elimination periods -- such as 30, 60, or 90 days -- when you purchase the insurance, though sometimes the payment gap is dictated by the terms of the policy.

In general, the shorter the elimination period the higher the premiums will be for comparable coverage.

References in periodicals archive ?
62% of the policyholders without inflation protection have policies with no elimination periods.
A policy today that pays a monthly benefit of $9,000 (for 10 years of care, with 5 percent compounded automatic inflation protection, a 90-day elimination period for facility care, and a zero-day elimination period for home health care) has an initial pool of money of $1.
About 60 percent of the effect of a longer elimination period comes from the censoring of shorter claims, while the remainder is due to the fact that workers facing a longer elimination period are less likely to claim benefits for impairments that would lead to only a brief period of receiving disability payments.
With long-term care, the typical elimination period is 90 days, which means you are responsible for covering the first 90 days of care on your own.
Duration of the nuclear ban warhead elimination period is proposed to be either three or four years, depending on the higher number of either Russian or US nuclear warheads remaining when the worldwide, unanimously joined nuclear ban treaty enters into force.
Not only that, but many companies will waive the elimination period and you could start receiving your benefits immediately.
That coverage often counts toward satisfying the elimination period.
As a result, a broker with a Lloyds of London relationship was called in, and a five-year key person disability policy was bound, with a lump sum benefit payable after a 12-month elimination period to protect the private equity firm's investment.
Since these plans are marketed to low-income, high-turnover groups and often contain a preexisting condition elimination period, enrollees often have left their jobs before they're even eligible for benefits.
Of course, prior to payment of any benefit the policy's elimination period must be satisfied.
Policyholders who do not want to pay the higher premiums will be offered the option of reducing the daily benefit amount permitted under the policy or changing the policy's duration, inflation protection provision or elimination period, Genworth says.
00 * Based on a $400,000 lifetime maximum, $6,000/ month for facility and home and community care after 90-calendar day elimination period with no inflation protection provided.

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