Elimination Period vs. Maximum Benefit Period

Course: Insurance Planning
Lesson 9: Disability Income and Long-Term Care Insurance

Student Question:

Hi,

I keep mixing up the elimination period and the maximum benefit period on disability income policies. I understand they’re both periods of time, but on a practice question I picked the wrong one when asked which period affects how soon benefits start. Is there an easy way to keep them straight, and can you also clarify why premiums move in opposite directions for each one?

Thanks so much,

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Instructor Response:

Hi,

Good question — these two get mixed up constantly. The elimination period is the waiting period between the onset of disability and when benefits start — essentially a deductible measured in time.

The maximum benefit period (MBP) is the opposite end — how long benefits keep being paid once they’ve started.

That’s also why premiums move in opposite directions: a longer elimination period shifts more early risk onto the client, so premiums go down. A longer MBP means the insurer is on the hook longer, so premiums go up.

Simple way to remember it: elimination period = how long until the check starts; benefit period = how long the checks keep coming.Let me know if you have more questions!