Understanding the Waiting Period in Disability Insurance Policies

Disability insurance can be a critical financial safeguard in the wake of unexpected accidents or health issues. If you develop a debilitating illness or are involved in an accident that leaves you severely injured, you may become temporarily or even permanently disabled. While disability insurance can help with ongoing expenses and financial stress during these difficult times, you may have to wait before coverage kicks in. Understanding these waiting periods can be crucial when selecting policies.

What Is a Waiting Period?

As its name may suggest, a waiting period within a disability insurance policy generally outlines how long you and your family may need to wait before beginning to receive financial aid through your coverage. These clauses in your policy may also be referred to as elimination periods.

How Long Are These Periods?

Your policy’s elimination period may vary significantly. Disability insurance policies primarily come in the following forms:

• Short-term disability insurance does not typically offer benefits for as long as long-term but can usually include more abbreviated waiting periods. Waiting periods with short-term disability policies can be as short as 30 days.

• Long-term disability insurance can often offer coverage for many years and even throughout the rest of your life. However, waiting periods are typically longer; you may have to wait up to two years to begin receiving benefits.

What Is a Probationary Period?

Waiting periods should not be confused with probationary periods, which are specified lengths of time between when your policy is issued and when benefits may be available. Many long-term disability policies do not have probationary periods, as their waiting periods would exceed this length anyway.

How Do Waiting Periods Affect Costs?

Generally, shorter waiting periods incur higher premiums. When facing a longer waiting period, many policyholders may be more hesitant to submit a claim, as they may have recovered from their disability by the time benefits would begin to pay out. However, your rates are also influenced by many other factors. Discuss your coverage needs and ideal waiting period with a qualified insurance professional.

We’re Here to Help

Contact the Morais Agency in Chester, New York, today to learn more about disability insurance and ensure you have an appropriate policy.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.