What is the difference between the waiting period and the survival period in health insurance
A reliable health insurance policy is something that everyone needs. It not only protects you from sudden medical expenses and reimburses your medical bills but also supports you mentally and emotionally during life tragedies.
Comprehensive medical insurance covers the cost of hospitalization, daycare procedures, medicine costs, ambulance charges, etc. It is responsible for taking care of your medical expenses, but sometimes, due to certain unavoidable reasons, the insurance claim process doesn’t get approved. The most common reason behind a claim being rejected is the waiting period and survival period.
At first, both of these terms might seem confusing. However, once a policyholder is aware of the basics, it becomes easier to comprehend, purchase, and claim the insurance policy accordingly.
WHAT IS WAITING PERIOD?
As per the guidelines, any policyholder cannot claim reimbursement as soon as they buy the policy. They have to wait for the waiting period to get over. Thus, a waiting period is a period during which certain pre-specified diseases are not covered. If you file a claim for any of the reimbursement before the end of the waiting period, it will be denied. It is a standard clause in all health insurance policies, including those from life insurance companies. The clause helps in reducing the insurer’s risk.
There are three types of waiting periods pertinent to health insurance policies. They are:
- Initial Waiting Period: This waiting period is applicable only when you buy a new health insurance policy. The duration of this type of waiting period is short, i.e., around 30 to 90 days. However, in case of an accident, the insurance company can waive the waiting period and cover your expenses.
- Disease-specific Waiting Period: You cannot claim for the treatment of certain diseases for a limited duration. These diseases generally include hernia, piles, hypertension, ovarian disorders, and even diabetes. The term of the disease-specific waiting period is longer, i.e., two to four years.
- Pre-existing Disease Waiting Period: A pre-existing disease refers to the health conditions that a policyholder suffers before buying the policy. Some of the pre-existing diseases are not covered for a certain number of years, and the claim arising due to such ailments during the pre-existing waiting period doesn’t get accepted. The duration of this waiting period lasts for a maximum of four years.
WHAT IS SURVIVAL PERIOD?
The survival period is the span of time that the policyholder should pass after getting diagnosed with a major illness so that the claim can be raised. The insured must live beyond the survival period in order to raise a claim against its policy. The survival period generally lasts for 30 days but can vary from 0-180 days as well. It depends on policy and insurer. Sometimes, the survival period can be applied together with the waiting period in a critical illness policy.
WHAT ARE THE BENEFITS OF A HEALTH INSURANCE POLICY?
- Covers pre and post hospitalization expenses- One of the key benefits of a health insurance policy is that it covers your medical bills incurred before and after hospitalization.
- Covers pre-existing diseases- A health plan covers you for a pre-existing illness once you have completed the waiting period mentioned in the policy certificate.
- Provides cashless treatment- At the time of hospitalization, you need not worry about arranging cash to pay your hospital bill. Your health insurance helps to settle it directly with the hospital if it is in their network.
- Provides tax benefit- You can claim a tax benefit on health insurance premiums under section 80D of the Income Tax Act, 1961.
- Covers ambulance expenses- Comprehensive health insurance also covers your ambulance expenses during a medical emergency.
- Provides additional sum insured- Being healthy has its own benefits. You can enjoy an extra sum insured for every claim-free year as per the policy certificate of your health plan.
Understanding these terms is crucial for your knowledge and can be used while buying an adequate health insurance policy. It would be best to compare the waiting and survival period clauses before purchasing a policy. It helps to provide you with a clear picture of the total number of waiting days before making a claim. For more information about our health insurance policy, please feel free to connect to us.
