This is a YouTube video titled "What Is the Elimination Period in Disability Insurance?" containing a discussion about the elimination period in disability insurance policies. The content explains the typical durations, costs, and recommendations related to elimination periods, along with a disclaimer about the hosts not being licensed financial professionals. The video was created in July 2024.
The elimination period is the period of time between the onset of the disability and the time when you start receiving payments. The standard elimination period is 90 days, but you can get a period as short as 30 days on a long term disability policy. Short term disability policies generally have no elimination period. Keep in mind that your payment often does not come until a month later, so a 90 day period is effectively a 120 day period. As a general rule, you should have an emergency fund to cover the first 90 to 120 days of disability, so you do not pay extra to get a shorter elimination period because a shorter 30 to 60 day elimination period can nearly double the cost of the policy. Conversely, there's not much savings in extending that period from 90 days to 180 days, so we generally recommend the standard 90 day elimination period.
The hosts of the White Coat Investor are not licensed accountants, attorneys or financial advisors. This podcast is for your entertainment and information only. It should not be considered professional or personalized financial advice. You should consult the appropriate professional for specific advice relating to your situation.
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