We’ve Got The Answers: How does a Life Insurance Waiting Period Work?

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Today’s Question: How does a life insurance waiting period work?

Generally, most life insurance policies do not have a waiting period, however, there are certain types of policies that do. No medical policies, where there is no medical test and a series of health questions, do have a waiting period.

So, how exactly would a waiting period work? If the insurer were to pass away within the first two policy years, the death benefit is limited to a return of premium plus, depending on the plan, it can also include interest. 
It is imperative that you look at your life insurance policy and verify if it is paid on an immediate basis or if it is pain on a deferred basis. Generally when it is paid on a deferred basis, the waiting period is limited to two years.
The key thing is to ensure you fully understand the ins and outs of your policy and if you do not, make sure you get all your questions answered in writing.
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