Whether you are purchasing health insurance for the first time or have done so in the past, there are often certain terms which are never entirely explained. However, many of these terms play a significant role in an insurance policy, and not knowing them can lead to claim rejection and loss of money.
One such term is called “waiting period”. Although it appears unassuming, few people know or understand what this word means and its impact on your insurance policy. This article will go into detail and explore what a waiting period means, what its types are, and how it impacts your group health insurance.
What is a waiting period?
The waiting period in insurance is the amount of time you have to wait before availing of its benefits. This period begins when the policy duration starts and lasts as long as pre-determined on the policy documents. Although a waiting period is typically more common for special benefits, meaning it takes a longer period of time before being able to claim settlement for it, the actual time period differs between insurance providers.
What are the types of waiting periods?
When looking through an insurance policy document, there are usually four types of waiting periods depending on the specific policy and the insurance provider opted for.
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Initial waiting period
An initial waiting period or cooling period is the amount of time you have to wait from the time of policy commencement before being able to use the particular policy. This duration is typically 30 days or one month.
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Waiting period for pre-existing diseases
When purchasing health insurance, you must declare and get checked up for any prior or current medical condition. Any claim relating to these diseases might require you to have the policy for a set duration. This duration can, however, depend on the specific insurer your policy is from and needs to be considered when purchasing the policy.
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Waiting period for specific diseases
Certain diseases which require long-term care are often also gated behind a waiting period. These diseases and the waiting period are mentioned explicitly in the policy document, and it is essential to consider this when purchasing a policy.
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Waiting period for maternity and newborn cover
Currently, nearly every insurer offers maternity and newborn cover as a part of the policy. However, this coverage is also gated behind a waiting period, and checking this before purchasing a policy is crucial.
What is the impact of the waiting period on group health insurance?
As previously stated, a waiting period is the time before a particular benefit can be availed. This term, however, is not well known, and this crucial detail can often be overlooked when purchasing a policy leading to a negative outcome. Today, especially when the cost of treatment is constantly rising and health conditions are rising, not knowing what this means can be harmful.
Let us take an example: Mr Verma is a 45-year-old professional who lives in Maharashtra. Mr Verma recently shifted his job, and the new company offered him group health insurance for employees. One day, Mr Verma was getting ready to go to his office when he suffered from a stroke. He was immediately hospitalised; however, despite having the insurance plan, he found out that because the initial waiting period for the policy was not over, he could not claim settlement for it and had to pay it out of his pocket.
Similarly, the same can happen for individual or family floater plans, resulting in a negative experience. However, understanding this and choosing the right policy can make the difference between claim rejection and being able to live confidently. You can also consider clarifying the same with a health insurance advisor for relevant information regarding your policy
Conclusion
There are numerous terms and jargon related to insurance. However, these terms are not always clear and explicitly considered when purchasing a policy. Whether ignorance or lack of knowledge, these crucial factors can often lead to financial loss or a bad experience when the policyholder finds it out later when the claim is rejected.
Knowing these terms and considering the fine print lets you choose the right policy and plan accordingly for your future. So make the right decision, consider these factors when selecting a plan, and live your life with confidence and peace of mind.
Also Read: What are the Different Types Of Health Insurance Policies?
