Elimination periods are typically applied to which type of policy?

Elimination periods are specifically relevant in disability policies, serving as the waiting period before benefits begin after a policyholder proves they are disabled. This period is designed to prevent small claims and helps manage costs for the insurer. During the elimination period, the policyholder is expected to be unable to work due to disability but does not receive benefits until this timeframe has elapsed.

In contrast, health insurance policies may have waiting periods for specific conditions before coverage kicks in, but they do not utilize the concept of an elimination period in the same manner as disability policies. Life insurance policies provide a payout upon the insured's death and do not involve waiting periods for benefits. Accident insurance typically pays out benefits immediately upon occurrence of an accident, not requiring an elimination period. Thus, the connection of elimination periods is most appropriately associated with disability policies.