What is a waiting period in terms of health insurance?

In health insurance, a waiting period refers to the duration an insured individual must wait after the policy's effective date before they can begin receiving certain benefits. This period typically applies to specific conditions or treatments and is designed to prevent individuals from purchasing insurance only when they need immediate care. For example, if a policy includes a waiting period for pre-existing conditions, the insured must wait until this period is over before the insurance company will cover expenses related to those conditions.

The significance of the waiting period lies in its role in managing risk for insurance companies and ensuring that coverage is provided for individuals who maintain that coverage long-term and not just when they are likely to incur high medical costs.