What is the observation period in insurance?

Insurance observation period, also known as waiting period, refers to a period of time from the effective date of the contract when the insured applies for health insurance such as medical insurance and critical illness insurance for the first time. During this period, the insurance company will not pay for the expenses incurred by the insured's illness.

Generally speaking, both critical illness insurance and in-hospital medical insurance have an observation period, usually 30 days or 90 days. If you get sick during the observation period, the insurance company is not responsible for paying the insurance money.

The observation period is set to prevent the insured from having an insurance accident or knowing that an insurance accident will happen and immediately taking out insurance to obtain economic compensation.

Different companies have different observation periods. Generally speaking, the observation period of major diseases and daily hospitalization is 90- 180 days, and the hospitalization allowance is 30 days, but there is no observation period for accidental medical treatment.

The observation period is generally calculated from the effective date or reinstatement date of the contract, which is only applicable to the first insurance year. For renewal policies, there is no observation period during the renewal year.