Back to all terms

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.

How It Works

The elimination period is the contractually defined stretch of time that must pass after a covered disability begins before benefits become payable. In Canadian disability wording it measures a set number of days during which the insured must remain disabled and keep meeting the policy conditions before benefits start. The clock usually starts on the first day of disability, the day the insured stops working because of their condition, not the date the claim is filed. It is also called a waiting period or qualifying period. You can file a long-term disability claim during this stretch, but the insurer will not begin paying benefits until the period ends, and only if the policy's eligibility requirements are met. Insurers use elimination periods to reduce short-term claims for temporary illnesses or injuries, to encourage use of paid sick days or short-term disability first, and to ensure that only serious, ongoing disabilities qualify for benefits.

Example:

Imagine a Canadian group long-term disability plan with a 120-day elimination period. An employee stops working in early April because of a serious illness and stays continuously disabled. Even if the claim is eventually accepted, long-term disability benefits would not usually begin until that 120-day period has been satisfied under the plan wording. If the employee has employer sick leave or short-term disability during that same stretch, those benefits can act as the bridge. If not, they may need to rely on savings or Employment Insurance sickness benefits until long-term disability begins.

What to Watch For:

A longer elimination period often means lower monthly premiums, but it also delays the first benefit payment. During the elimination period, Canadians often rely on paid sick leave, Employment Insurance sickness benefits, short-term disability coverage, or savings to bridge the gap. The elimination period is also distinct from the policy effective date, which is when coverage begins, and from the own-occupation and any-occupation tests insurers use to decide whether the claimant meets the policy definition of disability.

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.

Have questions about your insurance coverage?

Our licensed advisors can help you understand your options and find the right plan for your needs.

Contact Us