Individual disability insurance policies contain an elimination or “waiting period” during which no benefits are payable. Generally, you have a choice of waiting periods ranging from 30 days to one year. The longer the waiting period, the lower the cost of the plan. Suppose you choose a 90-day elimination period and then become disabled for 30 days and then recover. No benefits would be payable.
Now, suppose, after a 30-day recovery, you become disabled again for another 60 days from the same or a different cause. Would you have satisfied the 90-day elimination period with these two periods of disability? Under some policies, the answer would be “No.” When you make a recovery, the full elimination period begins again.
However, under better disability insurance policies, the elimination period would permit brief periods of recovery without having to start over from the beginning. In addition, the best policies will count periods of residual disability toward the elimination period and will waive the elimination period for recurrent periods of disability that occur within a 12-month period arising from the same
or related causes.
Other Policy Provisions:
Own Occupation Definition and other definitions of Total Disability
Waiver of Premium
Capital Sum Benefit
Transplant and Cosmetic Surgery Benefit
Exclusions and Limitations