What is a waiting period in health insurance?

A waiting period in health insurance refers to the specific duration that must pass before policyholders can access certain benefits or coverage under their health insurance plan. This period is often implemented to prevent adverse selection and to manage the costs associated with immediate claims from newly insured individuals.

During the waiting period, while the policyholder is covered by the insurance, they may not be able to utilize specific benefits such as coverage for pre-existing conditions, specific treatments, or certain procedures. Once the waiting period has elapsed, the policyholder can fully utilize their health insurance benefits.

The other options represent different concepts in health insurance. A time limit for filing claims relates to submission deadlines for claims made after receiving health care services rather than initial coverage. The time frame for annual policy renewal pertains to the schedule where policies need to be renewed, not the waiting time for benefits. A duration during which a policyholder can change plans means the ability to switch coverage options, which is separate from the waiting period concept. Each of these involves different aspects of the insurance process that do not align with the definition of a waiting period.