Elimination (Probationary) Period

Benefits for a covered sickness do not begin until the elimination period has been satisfied after the policy becomes effective — The elimination period, also called a waiting or probationary period, is the time after the policy's effective date during which no benefits are payable for a covered sickness. Once the period is satisfied, coverage for illness begins. Accidental injuries are typically covered immediately, without regard to the elimination period. The provision is designed to discourage people from buying coverage only after they become ill — a form of adverse selection — by making the insured wait out a defined period before sickness benefits start.

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