Waiting Period in Insurance

A waiting period in insurance is the time you must wait after purchasing a policy before you can make a claim for certain benefits. 

Basically, you’re waiting for your coverage to fully kick in for specific situations. It’s a standard practice across various types of insurance and it’s designed to keep policies fair and affordable.

For example, if your Public Liability Insurance is bundled with Income Protection Cover, you might need to wait for 14 days up to 2 years before claiming depending on your policy terms. This ensures insurers can manage risks and keep premiums sustainable for everyone.

Why Do Waiting Periods Exist?

Waiting periods serve a practical purpose. Here’s why they’re part of most insurance policies:

1. Preventing Immediate Claims: Without waiting periods, someone could buy a policy knowing they need expensive treatment right away, make a claim and then cancel the policy. This would drive up costs for everyone.
   
   
2. Keeping Premiums Affordable: By spreading risk over time, insurers can offer lower premiums, which benefits policyholders like you.
   
   
3. Encouraging Long-Term Commitment: Waiting periods encourage people to maintain their policies rather than hopping between providers for short-term gains.
   
   
4. Managing Pre-Existing Conditions: For Income Protection Insurance, waiting periods help insurers assess risks tied to conditions you had before signing up.

In essence, understanding waiting periods can help you choose policies that align with your needs and risks, be it for yourself, business, asset or family. 

If you have any questions about the waiting period of your policy or you’re planning to explore your options, you can get in touch with our team at Tank Insurance for expert assistance and advice. 

If you want more info, you can have a go at our blog or check our free Health Check eBook.