What is the elimination period for LTD?

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Multiple Choice

What is the elimination period for LTD?

The elimination period is the waiting period after disability begins before long-term disability benefits start. A common standard for LTD plans is 180 days, often aligning with the end of typical short-term disability coverage (about six months). This means benefits begin on day 181 if the disability continues. Choosing 180 days helps balance cost and coverage: a longer period lowers premiums and insurer risk, while a shorter period would start benefits sooner and usually raise costs. The other options—shorter like 90 or 120 days would start benefits sooner but at a higher premium, and a much longer 365-day period would leave a longer gap without income.

The elimination period is the waiting period after disability begins before long-term disability benefits start. A common standard for LTD plans is 180 days, often aligning with the end of typical short-term disability coverage (about six months). This means benefits begin on day 181 if the disability continues. Choosing 180 days helps balance cost and coverage: a longer period lowers premiums and insurer risk, while a shorter period would start benefits sooner and usually raise costs. The other options—shorter like 90 or 120 days would start benefits sooner but at a higher premium, and a much longer 365-day period would leave a longer gap without income.

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