July 4, 2008, Newsletter Issue #17: How Disability Insurance Elimination Period Clauses Work

Tip of the Week

Almost all standard disability insurance plans include what is termed an “elimination period.” This time frame in which benefits are not paid runs from the date of your covered disability to some period in the future. Generally, the most common elimination period for the best long term disability insurance policies is 90 days. As you search for the best disability insurance company for you, other elimination period choices of 30, 60, 180, and 365 days may be offered.

As noted, you’ll often have the choice of shortening the elimination period. However, you will notice a rather dramatic increase in the cost of disability insurance plans as you shorten the elimination period. For illustration purposes, you could equate this period with the deductible amount you’ve selected for your auto insurance. As your deductible goes down (e.g., from $1,000 to $500), your auto insurance premium can substantially increase.

The length of your elimination period operates in much the same way. Most professional disability insurance policyholders statistically opt for the 90-day choice because it appears to offer the best value for premium cost. Use ProtectYourIncome.com to help you understand your options and get the best disability insurance available.

Refer to your insurance policy contract for specific information regarding your coverage and for actual terms, conditions and exclusions. The above statements are general in nature and may or may not reflect the actual terms of your insurance policy.

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