Elimination Period

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Elimination Period An elimination period, also known as a waiting period, is the length of time between when an illness or disability begins and when a policyholder can begin receiving benefits from their insurance policy. During this time, the policyholder is responsible for paying for all costs associated with their illness or disability. The length of the elimination period is typically 30, 60, 90, 180, or 365 days. In other words, it is the length of time between the beginning of an injury or illness and receiving benefit payments from an insurer. For example if you were in a car accident that left you unable to work, and you filed a claim 30 days after the accident, the elimination period would begin the day of the accident Insurance premiums and elimination periods have an inverse relationship. The shorter the elimination period, the higher the premium will be; the longer the elimination period, the lower the premium will be. The purpose of an elimination period is to give your insurance carrier a chance to look at your claim and determine if they are going to approve you for long-term disability benefits. The difference between waiting period and elimination period is that; Waiting Period is the time beginning when a contract is issued and ends when the contract owner can begin to receive benefits. While Elimination Period is the period of time that begins at some point after the Waiting Period is over and when the contract owner incurs a benefit trigger event. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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