What best describes the term "waiting period" in insurance policies?

The term "waiting period" in insurance policies refers to the timeframe during which no benefits are paid. This period is established in certain types of insurance, such as health or disability insurance, where the insured must wait for a specified duration before coverage for certain benefits becomes active. During this waiting period, any claims that arise will not be covered by the insurance policy, meaning that the insured will not receive any financial assistance until the waiting period has elapsed.

After this period, the insurance policy will begin to cover the benefits as outlined in the policy terms. This concept is critical for insured individuals to understand, as it directly affects when they can expect to receive benefits and the implications for financial planning during that interim period.