In insurance terms, what does the elimination period refer to?

The elimination period is a crucial concept in accident and sickness insurance, referring specifically to the initial period during which benefits are not paid after a claim is made. It is essentially a waiting period that is built into the insurance policy before the insured can start receiving their benefits for a covered disability or illness.

Understanding this concept is important for policyholders as it impacts when they can expect financial support following a claim. The length of the elimination period can vary based on the policy terms, and a longer elimination period typically leads to lower premium costs, as the insurer is not expected to pay out benefits during that time.

By being aware of the elimination period, individuals can make informed decisions when selecting their insurance coverage, ensuring they choose a policy that aligns with their financial needs and circumstances. It's important to note that this period does not include times when the individual is disabled; it simply defines the starting point when benefits become payable.