What Is an Elimination Period for Disability?

An elimination period for disability insurance is the amount of time you must wait after becoming disabled before your benefits begin.

During the elimination period, you’re responsible for all related medical expenses out of pocket. Once the period ends and your claim is approved, your insurance company will begin paying benefits.

Contact a Greenville Social Security Disability lawyer for help.

How the Elimination Period Impacts Your Premiums

The length of your elimination period plays a significant role in determining your monthly premiums. 

Choosing a longer elimination period usually results in lower premiums, as it reduces the likelihood that you’ll file a claim soon after becoming disabled—making you a lower risk in the eyes of insurers.

Conversely, a shorter elimination period means benefits kick in sooner, which increases the insurer’s risk and typically leads to higher premiums.

Common Elimination Period Options

When shopping for disability insurance, you’ll likely see several elimination period lengths. Here’s how they typically work:

• 30 days: This is the shortest and most expensive option. It’s ideal if you want your benefits to start as soon as possible, but it comes at a higher monthly cost.
• 60 days: This is slightly more affordable than the 30-day option but still costly. A 60-day period may be suitable if you can handle a brief period without income but want to avoid extended out-of-pocket expenses.
• 90 days: This is a common middle-ground choice that balances affordability with reasonable wait time. Many people find this to be the most practical option.
• 180 days: This longer period can save you money on premiums if you have the financial cushion to go six months without benefits.
• 365 days: This offers significantly reduced premiums, but you’ll need to be confident in your ability to self-fund for an entire year.
• 720 days: The longest option and the least expensive in terms of premiums, but it requires strong financial preparation. Most people avoid this unless they have substantial savings.

Elimination Period vs. Probationary Period

Though they sound similar, these two terms refer to different aspects of your policy. An elimination period starts after you become disabled and determines when your benefits begin. 

A probationary period, however, begins when your policy is issued and limits when you can file your first claim. It’s mainly used to prevent fraud.

Most long-term disability plans have elimination periods, but not all include probationary periods. For more information, contact the experienced team at Pilzer Klein if you have any questions.

Choosing the Right Elimination Period

When deciding which elimination period is best for you, consider your financial situation and personal responsibilities.

Assess Your Budget

Start by reviewing your budget. If your income is tight, a longer elimination period can lower your premiums—but you’ll need to cover expenses yourself during that time. If you can afford higher premiums, a shorter period offers quicker access to benefits.

Consider Dependents

Think about your dependents. If you support children, a partner, or other family members, a shorter elimination period can provide peace of mind and stability during a challenging time.

Assess Savings

Finally, assess your savings. If you have a well-funded emergency account, you may be able to comfortably handle a longer elimination period. Without that safety net, a shorter wait might be worth the additional premium cost.

Tips for Managing Elimination Periods

Planning ahead for a potential disability is key to minimizing financial stress during the elimination period. Here are a few practical strategies to help you manage this waiting period effectively:

Build a Solid Emergency Fund

One of the most important things you can do is create an emergency savings fund specifically designed to cover your essential expenses—such as rent or mortgage, utilities, groceries, and medical costs—while you wait for benefits to begin. Ideally, this fund should cover at least the length of your chosen elimination period.

Combine Short-Term and Long-Term Disability Policies

If you’re concerned about the gap in coverage, consider layering a short-term disability insurance policy with your long-term policy. Short-term policies typically have shorter elimination periods (sometimes as short as a week), which can help bridge the gap until your long-term benefits kick in.

Review Employer-Provided Disability Insurance

If you receive disability coverage through your employer, make sure you understand the terms—especially the elimination period. Many people assume they’re fully covered, only to realize later that their policy has a longer waiting period or limited benefits.

Consult With a Financial Advisor or Insurance Specialist

A professional can help you evaluate your income, expenses, savings, and risk tolerance to determine the elimination period that aligns best with your financial goals. They can also help you compare policies and coverage options.

Understand Your Policy Inside and Out

Always read your disability insurance policy carefully. Pay close attention to the elimination period, benefit duration, and any exclusions or limitations. If anything is unclear, don’t hesitate to reach out to your insurance provider for clarification.

A Social Security Disability Lawyer at Pilzer Klein Can Help You

So, what is an elimination period for disability? An elimination period is a key factor in any disability insurance policy. It determines how soon you’ll receive benefits after a disability and plays a major role in your overall premium cost.

If you’re unsure which elimination period makes the most sense for your situation, schedule a free consultation with us at Pilzer Klein. We’re here to help you make confident, informed decisions.

And don’t forget to visit our blog for more helpful tips and resources on disability insurance.