What is a waiting period in health insurance?

A waiting period in health insurance refers to the specified duration that must pass before policyholders are eligible to receive benefits for certain health services or conditions. This period can be designed to prevent individuals from purchasing insurance only when they need immediate care or to manage costs associated with short-term illnesses.

For instance, a health insurance policy might include a waiting period of 30 days for certain treatments, meaning that if a policyholder seeks treatment within that timeframe, the insurance company will not cover the associated costs. This concept plays a crucial role in managing risk for insurers and is an important aspect for consumers to understand when evaluating their health plans.

The other options do not accurately describe a waiting period. For example, applying for coverage does not involve a waiting period; it simply refers to the initial application process. The renewal of a policy is a separate concept and does not imply a waiting period for benefits. Finally, reviewing medical records does not represent a waiting period but is more related to underwriting processes or due diligence on the part of the insurer before issuance of coverage.