I often say your Income Protection choices won’t work if you don’t ask the right questions. Waiting periods are a great example.
So what is a waiting period?
It’s the time between when you first become unable to work and when your benefit payments start. For example, if you choose a 30-day waiting period, your benefit begins after that time has passed.
Why it matters
The right choice depends on your circumstances, your savings, and how long you could manage without an income. Shorter waiting periods mean quicker access to payments, but they also increase premiums. Longer waiting periods keep premiums down, but you need to bridge that gap yourself.
Two simple examples
- Mary has a 14-day waiting period. After her sick leave runs out, she starts receiving benefits relatively quickly, but her premiums are higher.
- Scott has a 90-day waiting period. He pays less in premiums, but he needs to rely on savings or other resources for three months before any benefits start.
Both approaches can be right – it depends on your situation and what feels comfortable.
A family example
One family I worked with already had strong support in place. They had savings, plus help from relatives if needed. For them, a longer waiting period made sense and kept costs manageable.
For others, the peace of mind of a shorter waiting period is worth the higher premium.
The takeaway
Waiting periods are not one-size-fits-all. They need to fit your budget, your household situation, and how much risk you are comfortable taking on.
That’s why these conversations are so important. Talking through options with an adviser means you can match your policy to your real-life needs and avoid costly surprises.
