The benefit period is the maximum length of time that disability income benefits will be paid to the disabled insured individual. Policies are issued with either short-term or long-term payout periods. Individual short-term policies are issued for benefit periods of two years or less, while long-term policies are issued with benefit periods of more than two years, such as 5, 10, or 20 years. Many long-term policies will have a benefit period that pays the insured until age 65. The length of time for benefits affects the premium of the policy, whereas; longer benefit periods will increase premiums to the policyholder.

Recurring Disabilities are a common experience for many individuals that experienced a total disability at some point of their life. This occurs when an individual recovers from a total disability, and then weeks or months later undergoes a recurrence of the same disability. Most policies will list a specified period of time that must pass disability-free in order for a new disability and elimination period to begin. If this time frame has not passed, the disability may be viewed as a continuation of the previous disability and a new elimination period will not have to be satisfied. If a disability is viewed as a continuation of the previous disability, benefits will continue to pay without having to satisfy a new elimination period. We'll discuss elimination periods next.

Elimination Periods

Related Articles
  1. Insurance

    The Disability Insurance Policy: Now In English

    Learn to translate this complicated policy so you can rest assured you're covered.
  2. Financial Advisor

    Advising FAs: Explaining Disability Insurance to a Client

    Disability is a very critical type of insurance that most individuals should consider carrying. When it comes to your personal finances, long-term disability can have a devastating effect if ...
  3. Managing Wealth

    Tips for Insuring Your Salary

    Those with high incomes really can’t afford to be without disability insurance. Here's why.
  4. Financial Advisor

    Disability and Business Overhead Coverage for the Self-Employed

    What every small business owner or professional needs to know about individual and business overhead disability income insurance plans.
  5. Insurance

    Choosing The Best Disability Insurance

    Social Security benefits can be hard to collect. Find out why you need disability insurance to protect your income, and learn how to choose the right policy for you.
  6. Insurance

    Group and Individual Disability Insurance: What You Need to Know

    What you need to know about group and individual disability income coverage.
  7. Retirement

    Do You Qualify for Social Security Disability?

    When it comes to qualifying for Social Security Disability Insurance, you either do or you don’t. Here's how to find out if you do and how to apply.
  8. Financial Advisor

    Top 3 Financial Steps to Take on Disability

    Going on disability can be a stressful time financially. Here are 3 steps to take on disability to help protect against significant financial blowback.
  9. Financial Advisor

    Disability and Retirement: How to Be Prepared

    Here's how financial advisors can help clients with disabilities arrive at the best solution over the long term when it comes to planning for retirement.
  10. Taxes

    The New Tax-Free Savings Accounts For the Disabled

    Due to the Achieving a Better Life Experience (ABLE) Act, many people with disabilities will have an easier time financing their lives, starting in 2016.
Frequently Asked Questions
  1. Depreciation Can Shield Taxes, Bolster Cash Flow

    Depreciation can be used as a tax-deductible expense to reduce tax costs, bolstering cash flow
  2. What schools did Warren Buffett attend on his way to getting his science and economics degrees?

    Learn how Warren Buffett became so successful through his attendance at multiple prestigious schools and his real-world experiences.
  3. How many attempts at each CFA exam is a candidate permitted?

    The CFA Institute allows an individual an unlimited amount of attempts at each examination.Although you can attempt the examination ...
  4. What's the average salary of a market research analyst?

    Learn about average stock market analyst salaries in the U.S. and different factors that affect salaries and overall levels ...
Trading Center