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Elimination Period

The elimination period is the waiting time that must pass after an illness or injury occurs before disability insurance benefits begin to be paid. It functions like a deductible measured in days rather than dollars. During this period, you are responsible for your own income replacement through savings, sick leave, or other sources.

Elimination periods typically range from 30 to 180 days, depending on the plan and premium level. Shorter elimination periods provide faster access to benefits but usually come with higher premiums. Longer elimination periods cost less but require you to self-fund a longer gap before payments start.

This concept is most common in long-term disability (LTD) insurance but may also apply to short-term disability or critical illness riders that include income replacement features.

Example:

If your long-term disability policy has a 90-day elimination period and you become unable to work on January 1, your benefits would begin on March 31, provided you remain disabled through that time.

What to Watch For:

Make sure your elimination period aligns with your employer’s sick leave or emergency savings. If you have group coverage, coordinate the end of short-term disability with the start of long-term disability to avoid gaps in income. Always confirm whether the elimination period is measured in calendar days or working days, as this can affect when payments begin.

Related Terms

Effective Date

The effective date is the day your insurance coverage officially begins. From this date forward, you are eligible to receive benefits for covered health, dental, life, or disability expenses under the terms of your policy. The effective date is established once your application has been approved, all requirements are met, and the first premium payment has been received, unless otherwise specified in the policy.

Eligible Expenses

An eligible expense is any medical or dental service, product, or treatment that qualifies for reimbursement under the terms of your insurance plan. To be eligible, the service must meet several criteria: it must be medically necessary, performed by a licensed or approved provider, and fall within the plan’s specific limits and exclusions.

Extended Health Care Insurance

Extended health care insurance (EHC) is supplemental coverage that helps pay for medical expenses not covered by your provincial or territorial health plan. It protects you from out-of-pocket costs associated with services such as prescription drugs, vision care, medical equipment, hospital upgrades, emergency travel medical care, and paramedical services like physiotherapy or chiropractic treatments.

Short-term Disability Insurance

Short-term disability (STD) insurance provides temporary income replacement when you are unable to work for a limited period due to illness, injury, or surgery. It helps protect your income during the early stages of a disability, usually before long-term disability (LTD) benefits begin. This coverage ensures financial stability while you recover and are expected to return to work within a few weeks or months.

Endodontics

Endodontics is a branch of dentistry focused on treating the interior of the tooth, most commonly through root canal therapy. It addresses infections, inflammation, or damage to the dental pulp and surrounding tissue. Most dental plans classify endodontics as a restorative service, meaning it typically falls under the same category as fillings and crowns.

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