There are different waiting periods for hospital plans and it is important to understand how this can affect your cover. In the ideal world, a person would sign up for a hospital plan, be it a medical aid or a hospital cash back plan, when they are young and healthy and do not need the cover. These financial products are a form of protection for when you need it in unforeseen circumstances, not for capitalising at the last minute when the situation is at hand. Waiting periods mean different things for different financial products but in terms of hospital plans with regards to medical and cash back cover, a waiting period means any span of time when you cannot claim but have to keep paying your premiums.
deferred period
Deferred Period Rule and Meaning on Hospital Cash Plans
If you are signing up for a hospital cash back plan then there are certain rules that you need to be aware of at the outset. There is a misconception among South Africans that a hospital cash back plan is a route to easy money. It is a form of financial protection when you are severely ill and hospitalised. The deferred period rule ensures that payouts are only made to those who are in a position where they cannot work for a period of time and may therefore be financially inconvenienced by being hospitalised.