Written By: Simran Kaur Vij

Simran Kaur Vij

Health and Term Insurance

Simran is an insurance expert with more than 4 years of experience in the industry. An expert with previous experience in BFSI, Ed-tech, and insurance, she proactively helps her readers stay on par with all the latest Insurance industry developments.

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Reviewed By: Anchita Bhattacharyya

Anchita Bhattacharyya

Health, Term & Life Insurance

Anchita has over 6 years of experience in content marketing, insurance, and healthcare sectors. Her motto to make health and term insurance simple for our readers has proven to make insurance lingos simple and easy to understand by our readers.

Updated on Jul 02, 2025 4 min read

Policy Period in Health Insurance: An Introduction

In an era where healthcare costs are rising exponentially, securing robust health insurance isn’t merely a luxury but a fundamental necessity. According to a report by the National Sample Survey Office (NSSO), out-of-pocket expenditure accounts for over 62% of healthcare financing in India, often pushing families into financial distress. Against this backdrop, understanding every facet of a health insurance policy becomes critical, and perhaps no element is as foundational yet frequently overlooked as the "policy period."

Selecting the coverage period for your health insurance is as important as choosing affordable premiums. Time is an important factor when comparing health insurance plans. Your policy coverage benefits and features change with the increase or decrease of the policy period.

The policy period in health insurance is an important aspect affecting premiums, coverage features, offering multiple benefits, and more. In this article, we explore how?

What Is the Policy Period In Health Insurance?

The policy period in health insurance refers to the duration for which your health insurance coverage remains active. It is the time frame during which the insurance company is liable to provide financial coverage for medical expenses as per the terms and conditions of your policy. Understanding the policy period is crucial for every policyholder, as it directly impacts when you are covered and when you need to renew your policy.

You are free to choose your policy term for:

• 1 year
• 2 years, or
• 3 years

The Health Insurance policy period may vary from insurer to insurer. It entirely depends on you to select the policy period, and after the completion of said period, your health cover lapses until renewed.

How Does Policy Period Affect Health Insurance Premiums?

Let us understand how choosing the right policy period affects health insurance premiums through an example.

Ankit purchased a health cover of INR 5 lakhs at annual premium price of INR 8,000

Minimum And Maximum Policy Period In Health Insurance

The minimum policy period in health insurance is 1 year. When purchasing a health insurance plan, you will have to purchase a health insurance plan for at least 1 year.

Whereas, the maximum policy period in health insurance may vary from insurer to insurer. The maximum policy period in India is up to 3 years.

Things To Consider When Choosing A Policy Period

Consider this as your checklist when selecting your ideal policy period in health insurance:

Types of Waiting Periods in Health Insurance

Here are the main types of waiting periods you’ll encounter in health insurance:>

1. Initial Waiting Period (or Cooling-Off Period):

   Duration: 15 to 30 days

   Purpose: It applies to almost all new health insurance policies. During this period, no claims for any illness (whether planned or emergency) are covered, except for accidental hospitalization.

2. Pre-Existing Disease (PED) Waiting Period:

   Duration: 1 to 4 years

   Purpose: A pre-existing disease is any condition, ailment, injury, or disease that was diagnosed by a physician or for which the insured received medical advice or treatment within a specified period (e.g., 48 months) prior to the first policy issuance.

3. Specific Disease/Ailment Waiting Period:

   Duration: 1 to 2 years.

   Purpose: Even if certain conditions are not pre-existing, insurers apply a waiting period for specific ailments or procedures that tend to develop slowly or are elective in nature. This list is explicitly mentioned in the policy document.

4. Maternity Benefit Waiting Period:

   Duration: 9 months to 4 years

   Purpose: If your policy includes maternity coverage (which is often an add-on or a feature in specific plans), expenses related to pregnancy, childbirth (normal or C-section), and sometimes newborn baby care are covered only after this waiting period.

5. Critical Illness Waiting Period:

   Duration: 90-day (3-month).

   Purpose: This applies specifically to the diagnosis of critical illnesses (e.g., cancer, heart attack, stroke). The lump sum benefit associated with critical illness plans is payable only if the diagnosis occurs after this waiting period.

6. Accidental Hospitalisation Waiting Period:

   Duration: no waiting period (0 days)

   Purpose: Since accidents are unforeseen and require immediate medical attention, most health insurance policies provide coverage for hospitalisation due to accidents from day one.

7. Health Check-up Waiting Period:

   Duration: 1 to 3 continuous claim-free years

   Purpose: Encourages policyholders to maintain continuous coverage and promote preventive care over time.

What is a Cooling-Off Period in Health Insurance?

When most people in India refer to a "cooling-off period" in health insurance, they are usually talking about the "Free Look Period," which allows you to cancel a newly purchased policy within a specific timeframe (15-30 days) and get a refund. Less commonly, it can also refer to a mandatory waiting period after recovery from an illness before an individual is deemed eligible to purchase a new health insurance policy.

Concluding Note

Selecting a policy period in health insurance is as necessary as selecting the sum insured or premium prices of a health policy. It can save you big bucks and protect you from premium revisions done by your health insurance provider.

Confused still? Connect with our insurance experts to understand the ideal policy period in health insurance for you and your family.

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