They determine whether and when money may be paid.
An exclusion identifies an event, condition or circumstance the policy does not cover. A waiting period delays when a benefit can begin, or when certain claims qualify. Both can change the practical value of cover.
Some exclusions are standard; others are added after underwriting for a specific person. A policy may also apply a waiting period before income benefits begin or before particular causes of claim are considered.
Read the exact wording. “Back condition excluded” can be broader or narrower than it sounds. Ask whether an exclusion is permanent, reviewable or limited to a benefit, and whether a waiting period uses calendar days, working days or another definition.
Try this now
Create a one-page limits list for each policy: exclusion, waiting period, affected benefit, duration and source page. Do not paraphrase until you have copied the reference accurately.
Ask your advisor or insurer
- Which exclusions are standard and which are specific to me?
- Can any special term be reviewed, and under what evidence?
- How would I fund the period before a benefit begins?
Only the insurer can determine a claim under the contract. Obtain written clarification where a limitation is unclear.