Deductible vs Elimination Period

The period immediately following a covered loss or disability during which no benefits are payable, serving as a time deductible — An elimination period is the initial period after a covered sickness, accident, or disability begins during which the insured bears the cost and no benefits are paid. It acts like a time-based deductible, eliminating small, short-term claims and lowering the premium. It is a standard provision in disability and many medical-expense policies and is one of the contract-provision terms listed in the medical expense objectives, where it is distinguished from dollar deductibles, copays, and coinsurance.

National insurance concept

A period after a covered condition begins during which no benefits are payable — An elimination period is the waiting period, typically measured in days, that must elapse after a covered condition arises or after a disability begins before benefits become payable. It functions like a deductible measured in time rather than dollars; the longer the elimination period, the lower the premium. This contract provision is tested in the California A&H objectives as one of the key terms in individual medical expense contracts.

National insurance concept