What Is a Life Insurance Waiting Period?

A life insurance waiting period is the time before your policy pays out in full. It helps insurers prevent fraud and usually lasts up to two years.

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What Is a Life Insurance Waiting Period?

Written by Mark Fitzpatrick

Updated: October 29, 2025

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Key Takeaways

A waiting period means your policy won't pay out for certain reasons during the first one to two years after you buy it.

Life insurance waiting periods include the contestability period (when insurers can investigate claims), pre-existing condition exclusions, suicide clauses and application processing time.

Get coverage faster with accelerated underwriting (no medical exam) or buy guaranteed issue policies that skip waiting periods for most causes of death.

How Long Is the Waiting Period for Life Insurance

Most life insurance policies have a two-year waiting period. If you die from illness or natural causes during those first two years, your beneficiaries get back the premiums you paid instead of the full death benefit. Die in an accident and they get the full benefit immediately.

Standard Waiting Periods by Policy Type:

Term life insurance: Two years for natural death/illness, immediate for accidental death
Whole life insurance: Two years for natural death/illness, immediate for accidental death
Guaranteed acceptance policies: Two to three years (graded benefit period)
Group life insurance: Zero to 90 days, depending on your employer's plan
Simplified issue policies: Two years standard waiting period

Actual life insurance waiting periods vary by insurer and policy type. State regulations may affect waiting period requirements and policy terms. Consult with a licensed insurance professional to understand specific terms and conditions that may apply to your situation based on your state's insurance laws.

HOW THE TWO-YEAR WAITING PERIOD WORKS: EXAMPLE SCENARIO

You buy a $250,000 life insurance policy in January 2024 with a $100 monthly premium.

Die from cancer in March 2025 (14 months later): Your family gets back about $1,400 in premiums, not the full $250,000 death benefit.
Die in a car accident during the same period: Your family gets the full $250,000 immediately.

Exception: Accidental deaths are covered from day one across all policy types.

How Life Insurance Waiting Periods Work

Your waiting period length depends on several factors:

Age of the Policyholder

Older applicants often experience longer waiting periods because they’re statistically more likely to die sooner, which increases the insurer’s risk.

Type of Policy

Term life insurance policies have shorter waiting periods than whole or universal life policies. Term policies are simpler and less risky for insurers, resulting in shorter waiting times.

Health Status

Pre-existing medical conditions may extend your waiting period as insurers need more time to evaluate your health risks.

Coverage Amount

Larger coverage amounts mean longer waiting periods because insurers assume more risk. Death benefits exceeding $500,000 require deeper underwriting reviews and longer contestability periods. Insurers need extra time to assess the financial risk involved.

Underwriting Process

Policies with full underwriting usually have shorter waiting periods. Medical exams and detailed questionnaires give insurers a comprehensive understanding of your risks.

WHAT IF THE INSURED PASSES AWAY DURING THE WAITING PERIOD?

If you die during the waiting period, most insurers refund your premiums instead of paying the full death benefit. Some companies pay a partial death benefit to help with immediate expenses. Check this when comparing policies since it affects how soon your family gets financial help.

Types of Life Insurance Waiting Periods

Life insurance has several different waiting periods. Here's what each one means:

Type	Description
Pending Application Period	The time between submitting your application and getting approved or denied. You don't have coverage during this period.
Contestability Period	Lasts two years after your policy starts. The insurer can investigate claims and deny payment if you lied on your application.
Suicide Clause	Most policies include a two-year suicide clause. If you die by suicide during this time, the policy won't pay the death benefit, though premiums may be refunded.
Pre-Existing Condition Waiting Period	If you have known health issues when you apply, the insurer may add a waiting period for those conditions. Length varies by policy and condition.
Death Benefit Period	The time between when your policy starts and when the full death benefit kicks in. Often matches the contestability period but can vary.
Policy Rider Waiting Periods	Riders like critical illness, accidental death or disability income may have their own waiting periods separate from your base policy. These range from 30 days to two years depending on the benefit.

These waiting periods protect insurers from fraud and give you a clear timeline for when your benefits become fully active.

LIFE INSURANCE BENEFICIARY PAYOUT WAITING PERIODS

Life insurance payouts take two weeks to two months after you die. Beneficiaries wait while the insurer reviews the claim, checks paperwork and confirms the policy's terms were met.

The payout timeline depends on how quickly your beneficiaries submit documents and your cause of death. Insurers need to verify the death certificate, review the claim form and confirm the beneficiary's identity before releasing money.

How to Navigate Life Insurance Waiting Periods

Here's how to handle waiting periods:

1
Read the Policy Terms
Find the section explaining waiting periods and how they affect your coverage. Look for what happens if you die during each waiting period.
2
Consult an Insurance Advisor
An insurance advisor can explain how different waiting periods affect your situation and help you compare policies.
3
Compare Policies
Get quotes from at least three insurers and compare their waiting periods. Shorter waiting periods usually mean higher premiums, so calculate whether the extra cost is worth faster coverage.
4
Understand the Implications
Know exactly what your beneficiaries get if you die during the waiting period. This helps you plan for potential financial gaps and decide if you need additional coverage.
5
Check for Exceptions
Ask about exceptions like accidental death coverage that pays out immediately. These exceptions provide protection from day one.
6
Review Periodically
Check your policy every year or two to make sure it still meets your needs, especially if your health or financial situation changes.

TEMPORARY COVERAGE DURING WAITING PERIODS

Many insurers provide temporary insurance certificates that offer immediate coverage for 60 to 90 days at no extra cost while your full application goes through underwriting. These short-term policies begin once you make your initial premium payment, but they're usually capped at $250,000.

Temporary coverage can be helpful if you support dependents, carry large debts or have upcoming travel or medical procedures. While the benefits are capped and some restrictions may apply, this coverage helps fill the gap until your long-term policy takes effect.

Ways to Avoid Long Life Insurance Waiting Periods

You can't always skip the waiting period, but you can shorten it:

Accelerated Underwriting: Skip the medical exam and get approved faster. Insurers use algorithms and databases to assess your risk instead of waiting for lab results and doctor reports.
Group Policies: Employer-provided group life insurance often starts in zero to 90 days. Coverage amounts are usually lower than individual policies.
Traditional Underwriting: Complete the full medical exam and health questionnaire. Insurers may skip the waiting period if your health checks out and they see you're low risk.
Immediate Coverage Plans: Some insurers offer policies that start immediately for a higher premium. These work well if you need coverage fast for a specific reason like securing a business loan.

Life Insurance with No Waiting Period

Life insurance with no waiting period pays the full death benefit from day one. You need this if you're:

Recently diagnosed with a health condition
An older adult who might not qualify for traditional coverage later
A business owner who needs quick coverage for loans or key employees

Your beneficiaries get full financial protection immediately instead of waiting two years. These policies cost more because insurers take on higher risk without the contestability period. Compare rates from multiple insurers before you buy.

Immediate Life Insurance Policies

Two types of life insurance offer immediate coverage:

Simplified Issue Life Insurance: No medical exam required and coverage starts once your policy is active. The two-year contestability period still applies, so the insurer can investigate claims during that time.
Guaranteed Acceptance Life Insurance: You're approved without any health screening, but most policies include a two to three year graded benefit period. If you die during the first two years, your beneficiaries may only get back premiums paid or receive a partial benefit.

Read your policy's specific terms and limitations before you buy, even if it's marketed as "immediate" coverage.

LIFE INSURANCE WITH VS. WITHOUT A WAITING PERIOD

The main difference is when your beneficiaries get paid:

Traditional Policies: Include a two-year waiting period. If you die during this time, your beneficiaries get premium refunds or a partial payout.
No Waiting Period Policies: Pay the full death benefit immediately after the policy starts.

What Is a Waiting Period for Life Insurance: Bottom Line

Life insurance waiting periods delay access to full benefits during the first years of your policy. If you need immediate protection, a no-waiting-period policy might justify the higher cost. Review your health, financial needs and available options to find the right coverage for your situation.

Understanding Life Insurance Waiting Periods: FAQ

We answer common questions about life insurance waiting periods and how they affect your policy benefits.

Can you change the waiting period for life insurance?

The waiting period is fixed in your policy terms. Some policies offer options to shorten the waiting period for higher premiums.

How long does it take to get life insurance?

Getting life insurance takes several weeks to several months depending on whether you need a medical exam and how quickly the insurer processes your application. Your waiting period starts once your policy is approved and active.

Can you find term life insurance with no waiting period?

Term life insurance with no waiting period is available from some insurers. These policies cover you immediately after they start, which works well if you need protection right away.

Can you get whole life insurance with no waiting period?

Whole life insurance with no waiting period exists. Your coverage and cash value start growing immediately when your policy begins.

What happens if you die during the application waiting period?

If you die during the application waiting period before your policy is approved, your beneficiaries get nothing. You don't have active coverage yet, so there's no death benefit to pay.

Life Insurance Waiting Period: Related Articles

About Mark Fitzpatrick

Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.

Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!

He writes about economics and insurance, breaking down complex topics so people know what they're buying.

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