Our Glossary of life insurance terms
In the case
of insurance such as, permanent health insurance otherwise know
as Income protection insurance, this is the period between when
your incapacity starts to when a claim can commence.
The deferred periods on these plans should be set to coincide
with the your employers sick benefits package, for example of
your employer pays you for a period of 6 months then it is most
cost effective to set the deferred period on the plan to 6
months also. This is because the insurer will not honour a claim
while you are in receipt of payments from elsewhere.