How waiting period clauses apply in life insurance products

The 90-day waiting period in life insurance policies is a clause used across certain insurance products under which specific non-accidental claims may not be payable during the initial period after policy issuance, depending on the product design and underwriting terms.

According to Jude Gomes, Managing Director & Chief Executive Officer at Ageas Federal Life Insurance, the provision is part of industry practice in selected life insurance products and is aimed at supporting prudent risk management.

He said the applicability of such waiting periods depends on the structure of individual policies and the underwriting norms followed by insurers.

“The larger conversation today is not just about the existence of such clauses, but also about how clearly they are communicated to and understood by customers at the point of purchase,” Gomes said.

Industry experts say waiting periods are generally linked to non-accidental claims arising shortly after a policy is purchased. Accidental death claims are typically treated differently, subject to policy terms and conditions.

Insurance companies include such clauses to manage risks associated with immediate claims after policy issuance. However, experts say policyholders should carefully review exclusions, waiting periods and claim conditions before purchasing coverage.

The Insurance Regulatory and Development Authority of India has introduced measures such as Customer Information Sheets and disclosure norms aimed at simplifying policy terms and improving customer understanding of exclusions and waiting periods.

Gomes said insurers should ensure that important policy conditions are explained in a “clear, meaningful and customer-friendly manner” at the beginning of the customer journey.

He added that customer awareness around waiting periods and early-stage claim conditions is still evolving across the insurance industry, highlighting the need for stronger communication during policy sales.

Ageas Federal Life Insurance said it recorded an individual claim settlement ratio of 99.80% in FY26, with an average turnaround time of three days.

Gomes said claim settlement performance becomes meaningful when customers enter the policy relationship with a clear understanding of their coverage terms and conditions.