1. "Observation period" refers to medical insurance and critical illness insurance health insurance. When the insured applies for insurance for the first time, the insurance company will not pay for the expenses incurred by the insured's illness within a period of time from the effective date of the contract. The waiting period is generally calculated from the effective date or reinstatement date of the contract, which is only applicable to the first insurance year. For renewable policies, there is generally no waiting period in the renewal year.
2. The purpose of setting the waiting period is to prevent the insured from applying for insurance immediately when they know that the insurance accident will happen, which is the so-called adverse selection.
3. The "observation period" is a special period for critical illness insurance and medical insurance. Any insurance company has regulations on the above insurance products, but the time is different. Generally speaking, in general hospitalization medical insurance, the observation period is generally 60 days or 90 days; In critical illness insurance, the observation period is generally 90 days, 180 days, one year.