One of the most important aspects of disability insurance is the elimination period. This period plays a crucial role in determining when you can start receiving insurance benefits.

Disability insurance can provide essential financial support if you are unable to work due to injury or illness. Having this financial safety net can truly make a difference in your life, offering peace of mind when you need it most. By understanding how the elimination period impacts your eligibility for benefits, you can make more informed decisions for your future.

In this article, we will explain what an elimination period is and how it affects eligibility for disability insurance benefits. You are not alone in this process, and we’re here to support you with any questions or concerns you may have.

What we’ll cover:

What is the elimination period in a disability insurance policy?

The elimination period is the length of time you must wait after becoming disabled to receive benefits. The exact length of this waiting period varies depending on your insurance provider, policy type, and the terms of your individual policy.

If your employer sponsors your insurance plan, your employer will choose the length of the elimination period. However, if you have a policy that you purchased directly through an insurance company, you determine the elimination period.

Be sure to carefully review your policy documents to understand the elimination period for your plan. If you have any questions, contact our team of experienced disability insurance attorneys for help.

How does the elimination period impact your claim?

You will not be eligible to receive benefits until the elimination period has ended. During this period, you will be responsible for covering your expenses out of pocket. If you do not have sufficient personal savings or other resources available, this could be a significant financial blow.

If you expect your disability to last beyond the policy’s elimination period, you should file a claim for benefits as soon as you become disabled. Most insurance policies give you a window of 60-90 days to file for your benefits after becoming disabled. If you wait too long, it could result in a delay in benefit payments.

Read more: 5 Tips for Filing a Long-Term Disability Claim

How does the elimination period work?

The elimination period begins the date you become disabled. Generally, the insurance company considers you to be disabled from the date you stop working due to an injury or illness, not from the date you file a claim or get diagnosed.

To be eligible for benefits, you must demonstrate that you remained continuously disabled throughout the entire elimination period. This means you should maintain medical documentation that details your condition and its impact on your ability to work.

To be eligible for benefits, you must demonstrate that you remained continuously disabled throughout the entire elimination period.

Relevant medical documentation might include an Attending Physician Statement, test results, treatment plans, and any other relevant reports. At any point during or immediately after the period ends, you may submit additional documentation to support your claim.

Here’s how it typically works:

  • You become disabled and are unable to work.
  • You file a claim for disability benefits with your insurance provider.
  • You wait for the specified time period.
  • You submit any additional medical documentation to support your claim as needed.
  • After you have remained continuously disabled throughout the elimination period, the insurance company approves your claim, and your benefit payments begin.

What is the purpose of an elimination period?

The elimination period serves a few purposes. Primarily, it helps insurance companies save money.

It helps insurers filter out those who try to abuse the system or have short-term disabilities, such as minor injuries or temporary illnesses. By requiring an elimination period, insurers can avoid paying out benefits unnecessarily and reduce their overall costs.

The elimination period serves a few purposes. Primarily, it helps insurance companies save money.

While you’re waiting for long-term disability benefits to kick in, you may have other financial resources available to you. In addition to short-term disability benefits, you may be eligible for government assistance programs. Some examples include Social Security Disability Insurance (SSDI) or local paid leave programs, such as the Washington Paid Family and Medical Leave program.

Short-term vs. long-term insurance

Elimination periods will differ for short-term disability and long-term disability insurance. The two types of plans can complement each other to reduce the financial burden of being unable to work.

Short-term disability insurance

Short-term disability plans have a much shorter elimination period than long-term disability plans. This makes short-term disability a great option to help bridge the financial gap while waiting for approval of your long-term disability claim.

Elimination periods for short-term disability policies can range from a few days to a month. Typically, this waiting period will be around 14 days.

Long-term disability insurance

Long-term disability plans often pick up where short-term disability plans leave off.

Short-term disability benefits typically last between three and six months. The elimination period for long-term disability plans usually lasts 90 days (or three months), although it can vary from 30 to 180 days or even longer. This means that long-term disability benefits often become available just as the short-term disability benefits are coming to an end.

Again, it’s important to refer to your insurance policy as elimination periods can vary.

Learn more about Short-Term vs. Long-Term Disability Plans.

Individual disability policies

An individual disability policy is a policy you purchased directly through an insurance company (not through an employer). As previously mentioned, you, as the policyholder, may choose your elimination period for an individual disability policy. Common options for elimination periods in individual policies include 30, 60, 90, 180, or 365 days.

A longer elimination period usually results in lower premium payments. However, it also means you must wait longer before you are eligible to receive disability benefits. You should carefully consider your personal financial situation when selecting your elimination period.

Just as with employer-sponsored plans, the length of an elimination period varies for individual disability policies. That’s why it’s important to refer to your documents or consult your insurance provider to understand the terms of your policy.

Get help with your disability claim

Understanding the ins and outs of disability insurance can be overwhelming, especially when you’re dealing with a disability. Filing a claim, organizing medical documents, and understanding details like the elimination period can add to your stress during this challenging time.

It’s important to remember that you don’t have to go through this alone. At Roy Law Group, we’re here to support you every step of the way, whether you’re filing a claim or appealing a denial.

Disability law is all we do, and we’re committed to helping our clients secure the benefits they deserve. Don’t hesitate to reach out for help.

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