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What Is a Waiting Period on a Life Insurance Policy?

This is a very good question, and one that I come across quite frequently. Many of the clients that meet with have pre-existing conditions, or have been declined coverage by another life insurance company. When I meet with them, they are discouraged because they think that they are not able to get coverage at all. However, in almost every single case, I am able to provide them with coverage. Sometimes that coverage has a two year waiting period. What does that mean?

A two year waiting period that the person applying for coverage will not get full coverage for the death benefit until after 2 years. Before the two years, if the insured person passes away, the beneficiary of the policy will receive all premiums paid, but not the full amount of the death benefit. After 2 years has passed, if the insured has not passed away, the beneficiary will receive the full amount of the death benefit. Why do insurance do this for some policies?

When I meet with clients, the only time I sell policies with a 2 year waiting period is for someone that is currently sick, or has recently been sick with something quite severe (cancer, heart attack, stroke etc). But this option is a good option for my clients! Considering that most insurance companies would decline them coverage, having a policy that at the very least returns premiums, and at best pays the full amount of the policy is great! Many of these policies even pay a small amount of interest on the premiums paid as well, so it kind of acts like a savings account during the first two years.

If you are currently undergoing cancer treatments, or have recently suffered a stroke or heart attack, I would still be able to get you a policy, but there would be a 2 year waiting period. But this is still a great policy to have. Being able to leave your beneficiary something is always a good thing! There is really no down side to a policy like this, because you know at the very least your beneficiary will at least get the return of premiums that you paid into the policy.

I love talking with clients who are very surprised to hear that they can get a life insurance policy even though they have had some big health concerns. Maybe I can help you out soon too! 🙂

If you have any questions, please feel free to give me a ring (1-613-408-7002) or send me an email (