What is a "waiting period" in an insurance policy?

A "waiting period" in an insurance policy refers to the duration that must pass before benefits become payable. This concept is particularly relevant in various types of insurance, such as health, disability, or life insurance, where there may be a delay between the start of a policy and the activation of certain benefits.

For example, in a health insurance policy, there could be a specific waiting period before coverage for certain pre-existing conditions kicks in. Similarly, with disability insurance, the waiting period defines how long an insured person must wait after becoming disabled before they can start receiving their benefits. This serves as a risk management tool for the insurer, ensuring that they can effectively underwrite policies while maintaining financial stability.

Understanding the waiting period is crucial for policyholders, as it directly affects when they will be able to access benefits and how they plan for health or financial contingencies.