What is a 'waiting period' in a healthcare insurance policy?

A 'waiting period' in a healthcare insurance policy refers to a specified time before benefits become available to the insured. During this period, the policyholder is required to wait for a certain length of time after the policy starts before they can access specific benefits, such as coverage for pre-existing conditions or certain treatments. Waiting periods are commonly included in health insurance policies to minimize the risk of adverse selection, ensuring that individuals do not only enroll for insurance when they anticipate needing immediate medical care.

Understanding the concept of a waiting period is crucial for policyholders, as it impacts the timing of when they can effectively utilize their benefits. This knowledge helps individuals in planning their healthcare needs and managing any potential medical expenses that may arise during the waiting period.