What is the definition of Waiting Period?

Waiting Period, when applied to a health insurance policy, refers to the time that an insured person must wait before the insurance company starts paying for the benefits. The waiting period is usually counted from the date of policy issue to the date when benefits become payable. It may also refer to the time after an accident or diagnosis of sickness where the insured person has to shoulder the medical expenses or produce the necessary income before the insurance payments start to kick in. This is usually counted in days.

Waiting periods vary from one policy to another, and may even vary within the different benefits offered by one policy.

The waiting period is also called the probationary or elimination period. It serves as a form of deductible.

• Insolvency
• Misstatement of Age or Sex Provision
• Modified Premium Policies
• Moral Hazard
• Comprehensive Coverage