In the United States, 29.6 million people under the age of 65 were underinsured in 2021. While many people have enough insurance coverage, insurance waiting periods may cause problems if you experience issues before your policy goes into effect.
Do you want to learn more about insurance waiting periods and what you need to know about them?
Keep reading this guide for all the information you need to know about the different kinds of insurance and their waiting periods.
What Is a Waiting Period?
What is the waiting period for your insurance policy? This is the amount of time between when you enroll in coverage and when your policy starts to come into effect. This waiting period can be anywhere from a few days to a year, depending on your policy.
This can also be referred to as an elimination period or a qualifying period. It prevents you from making a claim before the waiting period is up.
If your policy has a long waiting period before your coverage goes into effect, you may pay reduced premiums for your coverage until you are eligible for your benefits.
Why Are Waiting Periods Used?
Why do insurance companies use waiting periods for their policies? It is to protect their business from people that want selective coverage. For example, some people may try to purchase a policy only to cancel it right after they get their benefits.
A waiting period will ensure that people seeking insurance will stay on the plan for a certain amount of time.
This also protects current policyholders and can keep their insurance premiums low.
Drawbacks to a Waiting Period
While waiting periods are often necessary for some types of insurance policies, there are also some drawbacks to purchasing burial insurance for seniors with a waiting period.
The main issue with a waiting period is that it leaves you underinsured. If you purchased final expense insurance with a waiting period and were to pass away before the period was complete, you would be unable to use your insurance benefits.
Plus, waiting periods differ for different types of policies. Depending on the type of coverage you choose, you may have to wait for several weeks, months, or even up to a year for your coverage.
To make sure you have the right amount of coverage when you need it, it is best to find burial insurance with no waiting period. This way, you will be eligible to receive benefits from your policy immediately.
Avoid Insurance Waiting Periods and Find the Right Policy Today
When you are investing in burial insurance, you need to be sure that you have the right amount of coverage when you need it most. Finding a company that doesn’t require insurance waiting periods can provide you with peace of mind regarding your insurance coverage!
If you want to avoid burial insurance waiting periods, USA Life Insurance Services can help! We offer burial insurance plans that do not require a waiting period to be approved.
Contact us today to learn more about the different kinds of insurance policies we offer.