What is an elimination period in relation to insurance benefits?

An elimination period in insurance refers to the waiting period after a disabling event. This period is the time frame during which the insured individual must be unable to work or perform daily functional activities before they can start receiving benefits from their policy.

The purpose of the elimination period is to prevent claims for minor or short-term disabilities and to ensure that the insurance payments are reserved for more significant, long-lasting conditions. This waiting period can vary depending on the specific policy terms but typically ranges from a few weeks to several months.

In the context of health or disability insurance, this concept is crucial because it directly affects when benefits will be made available to the insured. Understanding the elimination period helps individuals manage their expectations about when they will start receiving support after a claim is made.