What is the elimination period deductible also referred to as?

The elimination period deductible is commonly referred to as the waiting period for insurance payments. This terminology is used in insurance policies, particularly in disability and long-term care insurance. The elimination period defines the amount of time that must pass after a claim is filed before the insurance benefits begin to be paid out. This period serves to ensure that the insured must endure a certain duration of the qualifying condition before receiving benefits, thereby reducing the frequency of claims and associated administrative costs for the insurer.

In this context, it is crucial to understand that other types of deductibles serve different purposes. For example, the annual deductible is a set amount that must be paid by the insured each year before the insurance company begins covering expenses. The percentage deductible refers to the portion of costs that the insured must pay based on a percentage of the claim amount, while the aggregate deductible involves a total amount that must be paid by the insured during a certain period before coverage kicks in. Each of these types of deductibles operates differently from the elimination period, which specifically addresses the time that must pass before benefits are accessible after an event occurs.