When you purchase an insurance policy, it's easy to assume that your coverage starts immediately. However, that's not always the case. Many insurance policies have waiting periods that you need to be aware of before your coverage goes into effect.
What is a Waiting Period?
A waiting period is the time between when you purchase an insurance policy and when your coverage starts. During this time, your policy is in a sort of "limbo" where you aren't yet covered by your policy, but you're still responsible for paying your premiums. Waiting periods can vary depending on the type of insurance policy you have and the insurance provider you're working with.
Why Do Waiting Periods Exist?
Waiting periods are put in place by insurance companies as a way to mitigate risk. Insurance providers want to avoid paying out large claims for conditions or events that were already present or imminent before the policy was purchased. Waiting periods give insurance companies time to assess your risk and make sure they're not taking on a significant financial burden.
Types of Waiting Periods:
Initial waiting period: This is the time between when you applied and were approved for coverage but have not yet made the first premium payment. Many times, immediate coverage is solely contingent on the premium payment being made.
Medical condition waiting period: If you have a pre-existing medical condition, your policy may have a waiting period before full face value of the coverage is in effect. This is to prevent people from purchasing insurance after they've been diagnosed with a serious condition.
In conclusion, waiting periods are an important part of insurance policies that you should be aware of. By understanding the different types of waiting periods and taking steps to ensure you're covered, you can have peace of mind knowing you're protected when you need it most.
Looking forward for the opportunity to serve you and your family.
Ivonne Cabrera
Independent Life Insurance Broker
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