Before disability benefits begin at all, the elimination (waiting) period requires self-insuring from savings — a different gap than the ongoing monthly benefit amount.
How it works
Monthly expenses times the elimination period in months gives the savings needed to bridge that waiting period before any benefit payments arrive.
What this does not include
This doesn’t account for any short-term disability coverage or PTO that might cover part of the elimination period — it computes the full self-insured gap assuming no other income replacement during that time.
How to use this calculator
- Enter monthly expenses and the policy’s elimination period in months.
Frequently asked questions
Why do longer elimination periods lower the premium?
A longer elimination period shifts more risk (and cost) onto the policyholder’s own savings, reducing the insurer’s expected payout and thus the premium charged.
What’s a typical elimination period?
Common options range from 30 to 180 days (or longer), with 90 days being a frequently chosen middle ground between premium cost and self-insurance risk.
Should emergency fund savings double as elimination-period coverage?
Many financial planners suggest sizing an emergency fund with this gap specifically in mind, effectively serving double duty as both general emergency savings and elimination-period coverage.
