What is an elimination period?
An elimination period is a waiting period which must be satisfied prior to being eligible to receive disability benefits. In many cases, an elimination period requires that you are continuously disabled for the specified amount of consecutive days, typically 30 to 90 days, and in some cases 180 days, before disability benefits are due.
Similar to a long-term disability contract, there is an elimination period prior to the inception of benefit payments. The elimination period begins when the insured is deficient in performing specific activities of daily living or has a stand alone cognitive impairment. Such activities of daily living include bathing, dressing, eating, toileting, transferring and continence. The elimination period is triggered if hands-on, supervisory or directional assistance is required to perform two or more of these skills. The majority of long term care contracts offer elimination periods ranging from 20-100 days. These periods are designed to coordinate with employer-sponsored health insurance and/or Medicare. Typically, employer sponsored health insurance programs will provide coverage that mirrors Medicare reimbursements.
The elimination period is a waiting period, usually three months, before you can begin collecting benefits after you become disabled. Since most contracts do have an elimination period, it is important to have a large enough savings to pay the family bills during this period. Usually, however, your premium for the elimination period is refunded.
