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Difference Between Waiting Period vs Survival Period in Health Insurance
Health insurance is a safety net, but did you know that not all benefits are immediately accessible? Yes! Insurers apply certain limitations and time frames to avoid fraud.
Two crucial timelines include the Waiting Period and the Survival Period, which determine when you can claim benefits. Many people get confused between these terms, but they have some major differences based on the policy type.
Read to understand these terms that can help you plan smarter and avoid claim surprises in future!
Table of Contents
What is a Waiting Period in Health Insurance?
A waiting period is the time period you (the policyholder) have to wait to claim from a health insurance policy. The length and terms & conditions of the waiting period can vary from one insurer to another. If you are admitted to the hospital during your waiting period, you will not be eligible to receive reimbursement for the medical expenses you incurred during that time.
Types of Waiting Periods in Health Insurance Policy
Regardless of your circumstances, you must wait for the waiting period in health insurance to end before attempting to get any benefits or filing any claims.
There are different types of waiting periods, including initial waiting periods, waiting periods for pre-existing conditions, waiting periods for specific diseases, and maternity waiting periods. Let’s discuss each one of them:
Disclaimer: The above-mentioned waiting periods are not Digit-specific. It is the standard duration provided by insurers across the industry.
What is a Survival Period in Health Insurance?
Unlike a waiting period, a survival period is only a part of critical illness plans. It refers to the period of time that you need to survive after the diagnosis of a critical illness (such as kidney or heart failure, cancer, etc.). This period can last anywhere between 14 to 90 days, based on the illness and the insurer.
Only after this period can you get the lump sum amount from your insurer as mentioned in the critical illness cover. This period is calculated based on the first diagnosis of the critical illness and is in addition to the regular waiting period.
However, if an insured individual dies due to a critical illness before the survival period ends, the insurance company will not have to make any payments.
Features of Survival Period in Health Insurance
We know the survival period seems horrifying because it means that you have to live for a specific amount of time after being diagnosed with a serious illness to get any kind of benefit from your insurer. However, it is important for the insurer to avoid false claims.
Here are some features related to the survival period in health insurance:
- It mostly pertains to policies regarding critical illnesses.
- The three main determinants of the survival period duration are the sickness, the insurer, and the policy.
- This survival period is in addition to the previously stated standard waiting period.
- If you survive the specified time period, the insurer will give out a lump sum of money, which you can use for treatment or for your personal use.
Understanding Waiting Period vs Survival Period with an Example
To understand the waiting period vs survival period, here is an example of two brothers Mr. Ajay and Mr. Vijay, who recently bought different types of insurance policies. While both are covered, their policies have different conditions, such as a Waiting and Survival Period.
The Waiting Period Example
Mr. Ajay purchased a health insurance policy that covers pre-existing diseases. However, he was surprised to learn that he couldn't claim for his diabetes treatment immediately. His policy has a waiting period of 3 years, meaning he must wait before the insurer covers expenses related to his condition.
However, once this period is over, his claims will be processed without issues.
The Survival Period Example
Mr. Vijay, on the other hand, bought a critical illness insurance policy. Unfortunately, he was diagnosed with a serious illness within his policy term. Unlike Mr. Ajay’s waiting period, his policy has a waiting period of 3 years as well as a survival period of 30 days, meaning he has to wait 3 years before the insurer covers the expenses of his treatment and he must survive for 30 days after diagnosis to be eligible for the claim.
His policy won't pay out if he passes away before this period. But if he survives beyond 30 days, he receives a lump sum amount to support his treatment.
In short, The Waiting Period applies before a policy covers specific treatments, while the Survival Period is the minimum time a person must survive after diagnosis to receive benefits.
Difference Between Waiting Period and Survival Period in Health Insurance
If you are still confused about the difference between a waiting period and a survival period, don’t worry! Here are the differences that you must understand before buying a policy.
*Note: The survival period and waiting period can differ from policy to policy. Read your policy document thoroughly to know about all the clauses.
In conclusion, while both the waiting period and survival period are there to keep an insurance company safe from unwanted risks, they are not the same.
While all health insurance plans will have a waiting period, the survival period is only applicable to those suffering from critical illnesses. Additionally, the waiting periods are usually longer than survival periods.
It is important to know what both of these are so that you can make the right choice when it comes to buying health insurance or a critical illness plan. This way, you can choose a plan with a shorter survival period or waiting periods so that you’ll get the policy’s coverage sooner.