Disability insurance coverage begins at the issue date of the policy. After the policy is in force and a disability event occurs, the elimination period must be satisfied before benefits are paid. It’s important to emergency funds at least equal to the elimination period. If the disability persists, then the benefits will pay as states in the policy provisions like 5 years or to age 65.
Long Term Disability Insurance will start paying the benefit to the disabled employee after the waiting period (elimination period) has been satisfied. The most common elimination period chosen for Long Term Disability Insurance is 3 months, but it can be shorter or longer. The shorter the elimination period, the lower the premium.
The countdown for the waiting period usually starts on the day of the injury or illness, but if a minor illness has developed into a major one, the elimination period might not start to be satisfied until that progression has taken place. Each policy will spell out that criteria to review ahead of time.
Long term disability begins after satisfying the policy elimination period. Every policy is different. The elimination period describes the length of time you must be disabled and under the care of a physician, before benefit payments begin.
You choose the elimination period at time of purchase. Short elimination periods have higher premiums, than longer elimination periods. Check your policy to determine what elimination period fit your budget.
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The countdown for the waiting period usually starts on the day of the injury or illness, but if a minor illness has developed into a major one, the elimination period might not start to be satisfied until that progression has taken place. Each policy will spell out that criteria to review ahead of time.
You choose the elimination period at time of purchase. Short elimination periods have higher premiums, than longer elimination periods. Check your policy to determine what elimination period fit your budget.