In disability insurance, what is the term for the period between the onset of a disability and when benefits begin?

In disability insurance, the term that refers to the period between the onset of a disability and when benefits begin is known as the elimination period. This is a specified amount of time an insured must wait after a disability occurs before they are eligible to receive benefits from their policy.

The elimination period acts as a deductible of sorts, where the insured must experience a waiting period to ensure that benefits are only paid for longer-term disabilities and not for temporary or short-term issues. This helps insurers manage their risks and costs associated with claims.

While other terms like grace period, cancellation period, and probationary period are relevant in the context of insurance, they refer to distinct concepts. For instance, a grace period allows for late premium payments without losing coverage, the cancellation period pertains to the time during which an insurance policy can be canceled without penalty, and the probationary period often applies to health benefits during which certain conditions may not be covered. However, none of these terms specifically address the waiting time before disability benefits commence, which is encapsulated by the concept of the elimination period.