Elimination period is used with which policies?

• A. Disability income policies and long-term care insurance
• B. Life insurance
• C. Health insurance
• D. Travel insurance

Answer: (A)

The elimination period is the waiting period you must pass before benefits begin after a claim. It is used with disability income policies and long-term care insurance. In a disability policy, if you become disabled, you choose an elimination period (for example, 30, 60, or 90 days); if the disability lasts beyond that period, benefits start after the waiting time. In long-term care, benefits don’t begin until you’ve satisfied the elimination period, acting like a time deductible that reduces premiums—the longer the wait, the lower the premium. This concept isn’t a standard part of life insurance, typical health insurance, or travel insurance, where benefits are structured differently and don’t hinge on a separate waiting period before payout.